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