By Favour Nnabugwu
The Zambian insurance market recorded an 18.75 percent turnover increase in 2019. The latter went from 3.2 billion ZMW (266.48 million USD) in 2018 to 3.8 billion ZMW (272.16 million USD) one year later. This increase is driven by an insurance penetration rate of 2.63 percent against 2.29 percent in 2018.
The non-life premiums amounted to 2.3 billion ZMW (164.73 million USD) against 1.5 billion ZMW (107.43 million USD) in the life activity.
The Zambian market includes 30 insurers: 9 of which operate in life insurance and 21 in non-life activity. The market also involves four reinsurers.
In collaboration with the World Bank, the Pensions and Insurance Authority (PIA) has developed new rules supposed to better protect Zambian consumers.
PAmong PIA’s recommendations is the drafting of insurance contracts in a simple language the objective of which is to provide the policyholders with a better understanding of the covers underwritten. It should be noted that a control unit has been set up to ensure the enforcement of these new rules.
The market reported a turnover of 2.78 billion ZMK (310.5 million USD) in 2018, an increase of 16 percent compared to 2017.