About Pensions and Insurance Supervision

Introduction

The Pension and Insurance Supervision (PISU) Department was established on 1st July 2010. The department is responsible for supervising operations of pension and insurance entities.

Vision

To be a recognised regulator of excellence in promoting financial stability and development through effective supervision of pension and insurance sectors.

Mission Statement

To foster the development and existance of the fair, safe and stable pension and insurance sectors in Malawi by supervising and regulating pension and insurance entities through a dedicated team of examiners in order to instil public confidence in the financial system.

Core Values

In pursuance of the aforementioned mission, the department seeks to perform its work with transparency, integrity, professionalism, innovation, teamwork and efficieny without compromising its authority or mandate.

Strategic Objectives

The Department has the following core strategic objectives:

• To promote safety and soundness of pension and insurance entities.
• To empower and protect pension and insurance consumers by providing complaint redress mechanism, promoting fair market conduct and raising consumer awareness.
• To facilitate development of pension and insurance sectors in line with the Financial Sector Development Strategy.

To achieve the above objectives, the department has four key result areas namely:

• Prudential supervision
• Market conduct supervision
• Market development
• Complaints handling and consumer education

Contact Details Further information or inquiries should be addressed to:

The Director Pension and Insurance Supervision Department Reserve Bank of Malawi P. O. Box 565 Blantyre Malawi Tel. No.: (265) 1 820 299/444 Fax No.: (265) 1 832 222 Email: pisu@rbm.mw

Supervision of the Insurance Sector

The Insurance Act 2010 provides the primary legislative framework which governs the insurance market in Malawi. The main purpose of supervising insurance entities is to ensure that they are being operated in a sound and viable manner so as to develop and maintain public confidence in the insurance sector. To this end the primary responsibility of the Registrar is to protect the interests of the public by administering a regulatory and supervisory regime that promotes decency and fairness in the operating environment by encouraging insurance companies to confine their risk taking into acceptable levels.

It is, therefore, expected that the insurance industry will play a pivotal role in enhancing access to financial services and products by majority of Malawians.

ONGOING SUPERVISION

The Department monitors financial performance of market players through continued off-site surveillance of all insurance market institutions using financial statements provided by the regulated institutions on a quarterly basis. The department conducts periodic onsite examinations mainly as a follow up on to the off-site findings. As required, findings of such onsite examinations are reported to the concerned institutions.

The Reserve Bank currently regulates and supervises the following market players which make up the insurance industry:

• General Insurance Companies
  General Insurance companies undertake liabilities under a contract of insurance to indemnify a person in respect of any loss or damage, including a liability to pay damages or compensation contingent upon happening of a specific event. To this end, general insurance companies issue non-life policies, otherwise known as property and casualty.
• Life Insurance Companies
  Life Insurance companies undertake liabilities under a contract of insurance to indemnify a person in respect of any loss or damage, including a liability to pay damages or compensation contingent upon happening of a specific event. To this end, Life Insurance companies issue policies that cover liabilities contingent on the life of an individual.
• Reinsurance Companies
  Reinsurance companies on the other hand, undertake liabilities to pay money to insurers or reinsurers in respect of contractual liabilities or insurance business incurred by insurers or reinsurers arising out of events. In effect, reinsurers provide insurance services to insurance companies or indeed, other reinsurance companies.
• Insurance Brokers
  Insurance brokers are entities that act as agents of the insuring public on insurance products, providing advisory or risk management services and may assist in soliciting, negotiating and procuring of contracts of insurance or reinsurance in exchange of a commission.
• Insurance Agents
  Insurance agents are persons or companies which sell insurance products on behalf of insurance companies in exchange for a commission. Insurance agents will be appointed by insurance companies to issue or collect proposals and policies, and collect insurance premiums to be passed on to insurers.
• Insurance Loss Assessors/Adjusters
  Insurance loss assessors/adjusters are persons or entities that are engaged by insurers or policyholders to assess and establish the amount of loss/damage resulting from an event. This professional opinion may form the basis on how much should be paid in claims arising out of the event.

Supervision of Pensions

The Pension Act provides the primary legislative framework for regulation and supervision of the pension industry in Malawi. The main purpose of regulating and supervising the pension industry is to ensure that trustees and service providers act in the best interest of pension members, and that pension funds are operated in a safe, sound and viable manner in order to achieve the objective of providing retirement savings. Ultimately, this will help to develop and maintain public confidence in the mandatory pension scheme as well as providing social and financial security in retirement. At the aggregate level, the accumulation of savings through pension funds contributes significantly towards capital formation critical to creation of investments. If properly channeled the investments may positively contribute to economic growth.

Annual Reports

List of Licensed Insurance Entities