Book Review: Get to know Insurance basics
Book: Random Thoughts on Insurance Practice: A Practitioner’s Exposé
Author: Chimwemwe W Kanyenda
Reviewer: Ephraim Nyondo
This book is not entirely an academic text and therefore does not and may not be compliant to the strict and formal academic standards in terms of methodology and referencing. However, it is designed to attract appeal to a wider public audience in order to enhance inclusion and appreciation of cross cutting contemporary issues.
In Malawi, households, businesses, especially the small and medium scale enterprises and the informal sector demonstrate low level of financial literacy. They often lack sufficient awareness of the risks to which they are exposed, the ability to correctly assess these risks and the knowledge of insurance products that are designed to mitigate the insurable risks.
Historically, the main reason for the low level of financial inclusion in the country pertains to low income levels in general.
All of us, hence, envision a day to see the integration of these sectors into the financial system and the development of insurance products and channels to the market that would cater for their needs.
The provision of insurance services is still very much under-developed: insurance products tend to be very limited in range and target a very limited segment of the country’s population. The most common product offered is motor vehicle insurance. In other words, insurance products available in the country largely target the needs of those who own large assets or of salaried individuals with high disposable incomes.
In general, there is limited public awareness of insurance in Malawi, and distrust by the few who are aware of it. There is plenty of room for improvement of business practices towards consumers and innovation to serve the retail and micro-insurance segments. The very low penetration of insurance coupled with a large and growing population and economy, represent an attractively large potential market. This book provides the opening to that room. This book will be useful and worthwhile for any individual or business trying to better understand their risks and exposures and how to hedge against the same.
Get your copy.
The book is available at Central Bookshop Ltd, Chichiri Shopping Mall in Blantyre and Grey Matter Bookshop Ltd, Game Complex in Lilongwe.