Zambia’s insurance levels low

GOVERNMENT says it is surprising that 90 percent of Zambians are not insured.
And Government has challenged the Insurers Association of Zambia (IAZ) to view the statistics as a motivation to tap into the abundant market that exists.
Finance Deputy Minister Christopher Mvunga said the low level of insurance among Zambians was a demonstration that there was a huge market for the sector.
“With over 90% of Zambians not having insurance, and a 1.4% Gross Domestic Product contribution of the sector, this clearly demonstrates that there is a lot of work that needs to be done to ensure that people take out insurance, ” Mr Mvunga said
He was speaking during the official opening of a two-day conference for Insurers Association of Zambia at Avani Hotel in Livingstone yesterday.
The 2015 conference is being held under the theme “underwriting excellence”.
Mr Mvunga said it was important to realize that the insurance sector in Zambia was uniquely placed to assist Government in its quest to alleviate poverty.
He said a well insured society was able to mitigate the adverse effects of calamities that it encounters.
“The Government will do its part of creating an enabling environment. Whilst the current statistics are not exactly inspiring, this in itself demonstrates that huge opportunities still exist for the industry to grow,” Mvunga said.
He urged the association to view the statistics as a motivation to tap into the abundant market that presently existed.
Mr Mvunga said this could be achieved through, clearly defined value propositions that identify different customer segments.
He said insurance products and services must be offered at national level covering both rural and urban communities.
“Am sure with such an approach, the industry should achieve a higher penetration rate than presently is the case,”Mr Mvunga said.
Earlier, IAZ president Shupango Muteto said the main objective of the conference was to challenge the way the association had been conducting its business so that it could find better ways.
Mr Muteto said the conference was aimed at also creating linkages and networks with others in the region as insurance was international in character.
He challenged insurers, reinsurers, brokers, actuaries, regulators and others to strive and undertake process re- engineering in order to go back to basics of underwriting excellence.
Mr Muteto said this would help achieve desired sustainability and growth of insurance in the country.