Insurance sector poised to exceed K8bn premium before year end

By BUUMBA CHIMBULU

ZAMBIA’S insurance industry is expected to exceed K8 billion in Gross Written Premium (GWP) by close of this year, backed by the booming infrastructure projects in the country.
Last year’s GWP closed at K7.6 billion.
Pension and Insurance Authority (PIA) Analyst Insurance Department, Shadreck Milezhi, said by third quarter of this year, the GWP was at K7.1 billion.
Mr Milezhi said in an interview on the side-lines of the just ended 2024 annual insurance conference last week.
“Last year, we closed GWP at K7.6 billion and by the end of the third quarter we were at K7.1 billion and only remaining with about K800 million to meet the K8 billion by close of this year. Over the past six years the sector has been growing because the economy continues to improve.
“Assets are going up and buildings are coming up coupled with different things being insured. We have also seen motor vehicle insurance going up, especially now that it is mandatory. Therefore, we are confident that we will hit the K8 billion GWP by close of the year and can even reach K9 billion by close of next year,” he said.
Mr Milezhi said despite the challenges of the drought the sector is doing well. He said the drought has both come with challenges and opportunities.
“As the economy is improving it has corresponding impact on the uptake of insurance policies,” Mr Milezhi said.
And Finance and National Planning Minister, Situmbeko Musokotwane said the ministry was aware of the unique nature of the insurance industry in the financial space.
Dr Musokotwane said insurance provision is governed by several pieces of legislation including the insurance Act number 38 of 2021, the Road Traffic Act number 11 of 2002, the Income Tax Act number 24 of 2022, and the data protection number three of 2021 among others.
He said in speech read for him by acting Permanent Secretary for Economic Management and Finance, Mulele Mulele that it is clear that every facet of the economy is interconnected.
“That is why the private sector and Government should continue to dialogue to ensure that we foster an environment that continues to promote sustainable economic growth,” Dr Musokotwa