The insurance industry recorded a growth of 15 per cent in 2014 to register an improved market growth of 7 per cent from 2013, says Insurers Association of Zambia (IAZ) president Mr Shipango Muteto
Mr Muteto however said there was need for the industry to improve its service delivery so that the competition was based on service as opposed to price.
He said there was need for the industry to ensure that it delivered an exceptional service to its clients in order to fulfil their needs as opposed to engaging in price wars.
He said general insurance grew by 13 per cent in 2014 while life assurance grew by 21 per cent and attributed the growth to the general increased levels of insurance awareness among Zambians which was in line with the country’s growing economy.
Mr Muteto said Professional Insurance Limited emerged as market leader for 2014 contributing a total of 15 per cent to the total market premiums written in the country and with a 23 per cent share of the general insurance market.
He said this at the IAZ breakfast meeting held at the Pamodzi Hotel in Lusaka recently and noted also that the insurance market leader was quoted on the Lusaka Stock Exchange in 2014.
“The insurance industry is concerned that it is not taking its rightful place in the various Government policy pronouncements, and did not get any mention in Government policy documents, a situation which has also contributed to the low insurance levels in the country,” he said.
Mr Muteto said the industry was hopeful that through engagement with Government, the trend would be reversed as it was costing Government resources given that a robust insurance sector helps Government reduce its expenditure on certain social services.
He said a developing country like Zambia desperately needed this safety net to ensure that each and every ngwee that was spent was not lost as a result of any misfortune, there-by-safe guarding the growth attained.
And director planning and information, in the Ministry of Commerce Trade and Industry Mr Mateyo Kaluba announced that a Business Regulatory agency would be formed to ensure that there was efficient and effective business licensing system.
“The formation of the business regulatory agency will address a lot of the concerns that businesses have had regarding licensing and other regulatory issues affecting them in their sector, as it will be looking at the different specific needs of each sector or sub-sector, as opposed to the current wholesome approach being used by the ministry,” Mr Kaluba said.
Meanwhile IAZ executive director Christabel Banda said insurers have demanded for the speedy operationalization of the Business Regulatory Act No 3 of 2014.