Africa-Press – Mauritius. The importance for insurance professionals to develop expertise in sustainability was highlighted, today, by the Minister of Financial Services and Good Governance, Mr Mahen Kumar Seeruttun, who was the guest of honour at the 50th Annual General Meeting of the Insurance Association of Mauritius (IAM), held at the Labourdonnais Waterfront Hotel, in Port Louis.
Speaking on the real and evident risks posed by the effects of climate change and global warming on the Insurance sector, the Minister stated that it was imperative to respond to the challenges, and that sustainability should be part of the business culture, principles and values.
“The Insurance industry has an important responsibility to drive progress towards a net-zero economy and a sustainable future,” he stressed.
According to Mr Seeruttun, the Ministry of Financial Services and Good Governance had a sense of urgency and commitment to the Sustainability Agenda as evidenced by the future implementation of an Environmental, Social and Governance (ESG) Framework for Africa.
He also looked forward to future collaborations with the business sector with a view to furthering the Sustainability Agenda. Another concern to be considered by the Insurance Sector, as pointed out by the Minister, was the area of cybercrime and cyberattack.
“We need to be prepared and to face these new risks in an everchanging environment,” emphasised Mr Seeruttun.
The invaluable purpose of the IAM as the primary interface between the Insurance industry, Government and key stakeholders was underlined as well by the Minister.
He talked of the significant development and progress of the Insurance sector over the last 50 years along with its contribution to the economy and to the people.
“As providers of insurance solutions to businesses, to communities and to our countrymen, by endeavouring to manage and reduce risks to give businesses and people peace of mind, you have helped the entire society and the economy to function effectively,” underscored Mr Seeruttun.
The performance of the sector in 2022, which employs directly some 2,600 people with many more operating as brokers, accredited agents and insurance professionals, was also brought to the fore by the Minister.
The latter informed that the sector demonstrated its strength and resilience, despite a challenging year, by contributing 2.1 percent to the Gross Domestic Product of the country and registering a growth rate of 3.2 percent.
Mr Seeruttun attributed these positive outcomes to the good regulatory framework put in place by the Financial Services Commission, and the good governance and management by insurance companies. Minister Seeruttun listed, too, some key initiatives undertaken by Government in close collaboration with the IAM. These are:
amendment to the Insurance Act to introduce a new class of policy, namely Structured Investment-Linked Insurance Business, under the long-term insurance business category, so as to enhance the competitiveness of the Financial Services sector through wealth management offerings;
increase in tax incentives in respect of an individual pension scheme to encourage private individuals to take greater responsibility as regards their post-retirement years;
the upcoming National Claims Database system which will facilitate insurance claim and recoveries in the motor insurance sector, which accounts for more than 50% in terms of net premium;
a range of relevant training and development programmes to build a strong pipeline of insurance professionals and enhance competencies in the industry; and
financial education and instilling trust in the Insurance sector through regular financial literacy programmes offered by the Financial Services Fund.
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