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The importance of financial information: the insurance sector is the one that less informs

Michel Pedro

Manager

My short stint in journalism allowed me to understand how important financial information is for the continuity of activities and the evaluation of the performance of an entity, my former director of the newspaper Expansão, the journalist and economist Carlos Rosado de Carvalho, a renowned professional, always proved to be the defender of the habit of informing.

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According to some experts, the main aspect to consider in financial information is its usefulness, the importance of financial information being directly related to the utility attributed to it.

In this text, I do not make a legal analysis of the obligation of financial institutions to communicate with their most varied users, including investors, customers and suppliers.

The importance of financial information goes beyond the “simple” fact that the law requires, therefore, one of the main objectives of financial statements is to provide useful information to a wide range of users in making economic decisions, namely by providing information on the position performance and changes in the company's financial position.

During my 1095 working days as an economic journalist, I was able to have contact with an endless amount of financial information from the bank. The same cannot be said of the insurance sector.

The financial information of banks authorized by the National Bank of Angola (BNA) to operate in our market was/is easily obtained through presentations at press conferences or later on their websites.

As an economic journalist, I participated in many events of presentation of reports and accounts of financial banking institutions and very few times in similar events of non-financial financial institutions (insurance companies).

If informing the past financial performance and the present financial position are an important factor in making decisions for users, insurance companies that operate in the national market fail to provide or make it difficult to obtain such information.

This statement is supported by the reasons already mentioned above, the failure to publish reports and accounts in appropriate channels, such as on the websites, for example, that although few of them are functioning, they do not have financial information available.

The Angolan insurance market is on the list of those with very low levels of consumer adherence to services. If, on the one hand, the level of unemployment influences a lot, since it is only possible to be insured when you have some income, on the other hand, the poor financial information or the importance of these services contributes immensely to the stagnation of the sector.

Twenty-seven companies in the sector operate in the country, including insurance and reinsurance, a little less than half guaranteed to present their financial position, at least not publicly.

What is gained from producing content for the financial sector

Trust and security are the main elements that users of financial information seek. However, the production of content for the financial sector, according to communication and marketing specialists, brings benefits to the company, namely: reaching the target audience; traffic; consumer relationship nutrition; consumer education, etc.

Opinion of
Michel Pedro