National Bank of Malawi (NBM) has repositioned and rebranded its insurance premium financing solution, NBM Smart Cover, enabling customers to secure insurance cover without paying the full premium upfront.
Speaking at the press briefing, Business Development Manager for Retail Banking, Chifundo Kamwinda, explained that the facility allows the Bank to pay insurance premiums directly to insurers while customers repay in flexible instalments.
“As National Bank of Malawi, we are providing an affordable financing solution that allows the Bank to pay insurance companies upfront, while customers repay the facility in flexible instalments,” he said.
The service is available to individuals, small and medium enterprises (SMEs), and corporates, with access requiring a completed application form and a declared source of income.
Customers already financing assets with the Bank can use the insured asset as security, while Premium Gold and Platinum clients enjoy the facility without additional collateral.
The facility offers flexible coverage and repayment periods ranging from three to eleven months, allowing customers to spread the cost of annual insurance premiums over a manageable timeframe.
Kamwinda explained that the repositioning follows the enactment of the 2024 Insurance Act, which requires customers to pay insurance premiums in full before cover begins, creating financial pressure for many.
The Bank says the product will improve access to insurance by removing the burden of upfront payments, particularly in the current economic environment.
“With Smart Cover, customers can secure their assets without the strain of immediate full payment, while accessing a simple and flexible financing solution tailored to their needs,” said Kamwinda.
The product applies to a wide range of assets, including motor vehicles and business property, making it a practical solution for both personal and commercial insurance needs.
