By BUUMBA CHIMBULU
INNOVATIVE and aggressive marketing strategies should be adopted by the insurance industry in Zambia to change the public negative perception about the products.
As customers become used to digital interactions as the new norm, there will be a changing level of expectation in how they are communicated with from now on, according to the Zambia Institute of Policy Analysis and Research (ZIPAR) Executive Director, Herrick Mpuku.
During the just ended 2021 annual insurance conference celebrated under the theme “Enhancing the role of insurance to support economic growth,” Dr Mpuku stressed that increased marketing would show just how accessible insurance was.
“Penetration of the insurance industry has remained low in Zambia. Insurance companies need to consider such areas as small business/ small scale insurance insurance/ micro insurance, credit insurance – local and international and social insurance –pensions and gratuities,” he said.
Insurance, Dr Mpuku said, was a key instrument of risk transferring, indemnification and intermediation.
He stated that product diversification – customer demands had substantially changed. “There is need for greater customisation for insurance products to catch a wider market,” Dr Mpuku emphasised.
Speaking earlier, Insurers Association of Zambia (IAZ) Executive Director, Nkaka Mwashika emphasised the need to dispel several myths about insurance, if people’s perception was going to change.
“According to the 2020 finscope survey, the majority of people who do not use insurance either do not understand how it works, think it is too expensive, or feel do not need it.
This perception needs to change,” Dr Mwashika said.
He said some players needed to rethink how they dealt with comments on various platforms such as radio, newspaper and social media.
And IAZ president, Christabel Banda, said public perception of insurance was among the focal points of the conference.
Ms Banda the conference would look into the outcome of the research that was conducted and analyse the current perceptions of insurance.
“We will also discuss how to get from where we are with uptake of insurance by Zambians at five percent of the adult population to having the majority of Zambians will make use of the insurance service,” she said.
