By Noémia Mendes
Maputo (MOZTIMES) – The contribution of Mozambique’s insurance sector to the financial system has declined from 11.22% in 2020 to just 5.0% in 2024, according to the Financial Stability Report published by the Bank of Mozambique on 30 June.
Despite generating approximately MZN 22.5 billion in revenue in 2024, representing a 3.2% growth compared to 2023, the sector’s overall weight in the financial system continues to fall.
According to the report, the insurance sector accounted for around 5.0% of the share of key players in the financial system in 2024, a slight recovery from 3.7% in 2023, but still far from its 2020 contribution levels. One factor supporting the 2024 growth was the increase in the number of market players, now comprising 20 licensed insurance companies, signalling greater dynamism and competition.
The report notes that despite this repositioning, the insurance sector maintained a strong solvency margin in 2024, with a coverage ratio exceeding 450%, well above the regulatory minimum. This financial strength enables insurers to withstand unexpected losses and meet their obligations to clients.(NM)
