WHAT’S NEW
‘High street distribution’
and innovation to boost financial services and promote investment culture
FSC Chief Executive, Mr. Milan J. N. Meetarbhan,
says product innovation and new modes of distribution of financial services
will help to promote an ‘investment culture’ in Mauritius, while
contributing to increase the share of the services sector in GDP.
Mr. Milan Meetarbhan has
inaugurated a new branch office of the Life Insurance Corporation of
The new Act, which will come into force shortly, will
entail a number of changes. Mr. Meetarbhan invited
the industry to consider these changes “more as opportunities, rather
than challenges.”
The insurance industry performed well in 2005. But,
said the FSC Chief Executive, insurance companies will have to be innovative
and tap these opportunities, namely by introducing new products and services,
as well as new modes of distribution.
Banking institutions are showing increasing interest
in the distribution of insurance products, and are establishing partnering
strategies for the distribution of financial products via the banking networks.
“These are innovations that we welcome,” said Mr. Meetarbhan. However, this mode of distribution of financial
services and products should not be limited to insurance, he added.
‘High street distributors’ can help to
extend the distribution network and bring insurance and non-insurance products
to the door steps of people in towns and villages, thereby promoting an
investment culture nationwide.
Mr. Meetarbhan expressed the
wish that the industry comes up with innovative products and services that will
increase the share of financial services in the economy, which currently stands
at 10% of GDP.
“Innovation will be important not only for the
financial services sector but to the services sector as a whole,” he
outlined.
In fact, the financial services sector can be an
“engine of growth” of the economy: “
7 December
2006