Maputo — The Mozambican Deputy Minister of Economy and Finance, Amílcar Tivane, has challenged the insurance companies operating in the country to create inclusive services in order to cover the low-income population.

According to the deputy minister, who was speaking, on Wednesday, in Maputo, at the 2nd Annual Insurance Conference, under the theme "insurance in times of change', the insurance market has seen remarkable growth in recent years, but there is a need to create inclusive services for the low-income population.

"There is a need to create products and services aimed at low-income populations. The challenge facing the insurance sector is perhaps to optimize the advent of information and communication technologies to improve access to population segments that are in more remote regions, but which contribute greatly to the country's gross domestic product', he said.

He revealed that, in 2023, the sector generated an additional 21.4 billion meticais (328.8 million dollars at the current exchange rate), which is two per cent when compared to the 2022 figure.

The sector, he said, currently covers 19 insurance companies, three micro-insurance companies, eight pension fund management organizations, 158 brokers and 31 agents.

"17 per cent of the Mozambican population now has access to financial services and the insurance sector plays an important role in the gradual growth of the population with access to services. These companies must also include small and medium-sized businesses in order to promote micro-insurance spaces in the country', he said.

The Deputy Minister also believes that the legislation needs to be improved to deal with new risks, especially those linked to climate change.

The chairman of the Board of Directors of the Mozambican Insurance Association, Ruben Chivale, said that the insurance market must adapt to new challenges, especially when it comes to climate change, energy transition, artificial intelligence and international conflicts.

"It is in this context of profound changes that we say we are safe, because the sector is resilient. We are currently working on the database that will help monitor risks', he said.

Chivale revealed that by September, the sector will carry out an insurance market study that will, for the first time, assess the macroeconomic context and the indicators that have an impact on insurance activity in Mozambique.