CIC Insurance Group yesterday inched closer to launching its Malawi business operations after yesterday's signing of a contract with its partner. CIC has signed the deal with Malawi Union of Savings and Credit Cooperative, the umbrella body of 45 saccos in the Central African country with a combined membership of 110,000 people.
The two plan to start operations in Malawi in July and CIC has applied for a licence and other approvals from the Reserve Bank of Malawi. "Less than two per cent of our people have access to insurance," said Muscco CEO Sylvester Kadzola.
Muscco and CIC will each have 49 per cent shareholding while the remaining two per cent will be held by other interested investors from Malawi. "We need to give our people a complete package of financial services," said Kadzola yesterday at the signing ceremony held at CIC group offices in Nairobi.
CIC Group managing director Nelson Kuria said the company will invest Sh300 million out of the Sh1.5 billion kitty set aside for new markets, into the Malawi business. Malawi, a landlocked country, is a ripe market for micro insurance with majority of its population being small scale farmers and businesses.
Once in Malawi, CIC will also partner with the largest union, the Malawi Farmers Union to create customised products for its members as well as the vast rural population using the co-operative distribution models and network.