About half of the vehicles circulating in Mozambique do not have civil liability insurance, which is required by law, the president of the Mozambican Institute of Insurance Supervision (ISSM), Otília Santos, said on Friday.
“Analyses that we have been doing together with the National Institute of Land Transport (INATTER) show that just over 50% of the vehicles circulating are covered by this type of insurance,” she said in an interview with Mozambican daily newspaper Notícias.
Up until the first half of 2016, out of a total of 684,000 vehicles, 360,000 were covered by this mandatory insurance, according to the figures presented.
“There is work that has to be done,” on an inspection level, said Santos, adding that the ISSM is willing to collaborate with actions with this in mind.
In a country with about 29 million inhabitants and 20 insurance companies, the president of ISSM said that one of the main challenges facing sector operators is internal capacity to cover large risks.
The natural resources sector is seen as an opportunity for insurers, as well as the agricultural sector, which lacks the involvement of insurers to develop, Santos said.