By Alfred Mthandizi
Reserve Bank Governor , Dr. Dalitso Kabambe says Insurance companies plays vital role in development any country. Dr. Kabambe has since urged Insurance Companies to be professional in execution of their duties in order to realise full potential of their role. The Malawi Reserve Bank Governor, was speaking in Lilongwe when he presided over the opening of
a regional workshop for insurance supervisors which was coordinated by Mr. Courtney Christie-Veitch, a Coordinator, and Financial Sector Regulations and Supervision Advisor at the IMF-East AFRICA.
Dr. Kabambe said Insurance companies helps countries to have stable financial systems which effectively contribute to the socio economic development of economies. Dr. Kabambe said insurance companies plays vital and equivocal role in the development of countries in Africa and Malawi in particular. “The importance of this training cannot be overemphasized. Not long ago, the world was in financial crisis partly due to weaknesses in regulations of financial institutions. If we had effective instruments and timely monitoring financial institutions, perhaps, we could have avoided the crisis. Nonetheless, it happened and the challenge now, is how to stop it from happening again in future,” said Dr. Kabambe.
Dr. Kabambe said the training was among many initiatives aimed at averting the occurrence of another crisis in future. “It is also special in that it is targeting supervisors of insurance entities. Regulators in this sector have for a long time struggled to find relevant structured training programs for Supervisors in this area.” Dr. Kabambe said.
According to Dr. Kabambe, the choice of focus of the training program on Risk-based capital adequacy and financial soundness indicators of asset quality/credit and concentration risks, earnings, liquidity, reinsurance, corporate governance and capital adequacy were all commendable. Dr. Kabambe said that and I have skills gained from this workshop will help regulate better insurance entities in the region so that there is fair, safe and stable insurance markets.