Insurers gather to toughen industry response to growing digital threats 

By BUUMBA CHIMBULU

INSURERS have gathered at the 2024 annual insurance conference to deliberate on, among others, how to combat fraud in the sector arising from false claims, with Government raising an alarm on the growing threats caused by cyber security.
Celebrated under the theme “Adapting to the Changing Landscape of Economic, Environmental and Social Risks,” the conference brings together professionals in the insurance sector and related industries to strengthen the industry in the country.
At the opening ceremony yesterday in Chongwe, Finance and National Planning Minister, Situmbeko Musokotwane noted the growing digital landscape which came with its own benefits and challenges.
Pointing out cyber security as a reality, Dr Musokotwane called for the need to ensure risks solutions addressing threats and risks faced on a daily basis.
He said this in a speech read by the ministry’s acting Permanent Secretary for Economic Management and Finance, Mulele Mulele.
“We must not be left behind in this digital space,” Dr Musokotwane said.
He also encouraged insurers to ensure outstanding customer experience that complaints against insurance became a thing of a past.
Speaking earlier, Insurers Association of Zambia (IAZ) Executive Director, Nkaka Mwashika explained that participants had gathered to explore opportunities for growth and resilience.
Dr Mwashika said this was in the face of various economic, climate and social challenges, with the conference providing a platform for delegates to address emerging challenges, meet evolving customer expectations, and leverage artificial intelligence and Information Communication Technology (ICT) innovations. 
“Our deliberations will focus on enhancing the industry’s response to societal needs. We will also deliberate on how to combat fraud that arises from false or exaggerated claims, while also enhancing the customer experience for the genuine client. 
“Procedures and know your customer requirements need to balance with a demand for simple and straight forward service delivery, a balance which some service providers are still working towards mastering. We are confident that the increasing uptake of ICT tools will help us achieve this goal,” Dr Mwashika said.
Meanwhile, IAZ president, Irene Muyenga said the theme underscored the insurance industry’s imperative to tackle Environmental, Social and Governance (ESG) challenges.
Ms Muyenga stated the presence of environmental risks such as climate change which posed significant threats to farmers and the nation.
She said the insurance sector was able to respond to the crisis, as exemplified by recent pay outs under the farmer input support programme weather index insurance programme.
“But we must be prepared for more environmental challenges to come. Secondly ,there are various social risks, public perception, cultural challenges and social inequalities continue to hinder insurance uptake among others,” Ms Muyenga said.
And Pension Insurance Authority registrar Namakau Ntini emphasised the need for the sector to continually adapt to the evolving landscape to ensure sustainability and robust risk management practices.
Ms Ntini, who is also the Chief Executive Officer, said the theme underscored the critical role of the insurance industry in fostering economic development and serves as a fundamental risk management tool for both individuals and businesses.
“Developing a well-defined ESG strategy is no longer optional but imperative for insurers to thrive amid industry challenges. Insures at their core have a mandate to manage risks and this is function that cannot be separated from ESG.
“Beyond assessing the impact of bad weather events on company value, Insurers must begin to take a holistic view of the changes occurring in the environment they are operating,” Ms Ntini said.