INSURERS have proposed that Government should consider removing value added tax on insurance premiums in the 2016 national budget, says Insurers Association of Zambia (IAZ) president Shipango Muteto.
Mr Muteto said the industry was committed to ensure that many Zambians had access to improved standard of living through insurance services.
He was speaking at a press briefing in Lusaka during the launch of the 2015 insurance week which will run from the 14th to 18th of September under the theme “insure today, secure tomorrow.”
He explained that the current cost of buying insurance for the ordinary Zambian was currently very high.
Mr Muteto also said the Government should give tax incentives to companies that offered micro insurance products targeting the vulnerable in society.
“We want to ensure that Zambians look at insurance as an investment into their future so they can insure today, to secure tomorrow,” he said.
He said there should be tax incentives for Zambians who wanted to take out various life policies to help them protect their families.
Meanwhile, Pensions and Insurance Authority (PIA) Registrar Martin Libinga said insurance sector is a key player in promoting trade and commerce for the betterment of the economy.
Mr Libinga said without a full functional financial service sector, the economy would be stagnant,.
He said insurance was a critical part in the financial services sector because it provided a critical risk transfer role and was a vital long-term investment tool in the economy.
Various activities have been lined up across the 10 provinces this week to sensitize the public on the importance of insurance.
He said the Authority was happy to note that insurance had been growing steadily in the last 10 years and currently has 33 insurance companies from 27 in 2014.
“In terms of gross written premium the industry recorded an overall increase of 17 percent in 2014, the insurance industry also recorded a 23 percent increase in net claims incurred to K473.9million from K385 million recorded in 2013,”he said.
Mr Libingi also said PIA was however concerned with the low uptake of insurance which meant that the majority of Zambian did not have the essential risk copying mechanism.
He said the authority wanted to see more innovation in the financial sector especially in micro insurance. “We are happy to note that we now have 9 micro insurance companies active in the micro insurance space and we hope to see more coming on board,” he said.