CIC Insurance Group and MUSCCO to establish new cooperative in Malawi
International Cooperative and Mutual Insurance Federation (ICMIF) members CIC Insurance Group (CIC), Kenya, and the Malawi Union of Savings and Credit Cooperatives (MUSCCO), Malawi, are on the verge of establishing a new cooperative insurance company in Malawi following the visit by Nelson Kuria, Group Chief Executive Officer, CIC, in December, 2013.
During the visit Mr. Kuria met with the MUSCCO Board of Directors to formalize the partnership agreement. The two institutions are now in agreement with the shareholding, capital and operations structure of the partnership. This is in line with CIC’s strategy to help countries across Africa by enabling cooperative insurance services to be made available to more African people through partnerships with cooperative development organizations in these countries.
MUSCCO and CIC are now conducting a market study which will then assist with the development of a strategic plan in Malawi in 2014. Both CIC and the MUSCCO Board of Directors are committed to launching this company in Malawi by July, 2014.
Nelson Kuria and Sylvester Kadzola, Chief Executive Officer, MUSCCO, also met with officials at the Reserve Bank of Malawi, the insurance regulator there. They shared plans for the strategic framework of the partnership between MUSCCO and CIC when setting up the new cooperative insurance company in Malawi. In his own words, the Director of Pensions and Insurance Supervision at the Reserve Bank said, ‘‘we support this initiative because financial cooperatives do things differently. They have both a social and a business face. They provide financial services to lives that are never serviced by our formal financial institutions in Malawi. We are proud to part of this initiative!’’ .
Once established, the new cooperative is expected to target over 120,000 Savings and Credit Cooperatives (SACCO) members (all of which are affiliated to MUSCCO); over 800,000 farmers organized in various producer cooperatives and associations by the Farmers Union of Malawi (FUM) and the National Smallholder Farmers of Malawi (NASFAM); over 600,000 clients of microfinance institutions and will aim to sell general insurance products to the public at large.
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