Finance Minister Urges Insurance Firms To Satisfy Customer Needs

Experts in the Insurance industry and other stakeholders have convened in Chongwe for a three-day Annual Insurance Conference organized by Insurers Association of Zambia.

The Experts include insurers, reinsurers, brokers, risk managers, Information and Communication Technology (ICT) service providers, regulators, risk managers, among others.

The 10th Insurance Conference which will run from 13th to 15th November 2024, is being held under the theme, “Adapting to the changing landscape of economic, environmental and social risks.”

And officiating at the Conference this morning, Minister of Finance and National Planning urged the Insurance sector to provide products and services that offer customer needs.

Dr. Situmbeko Musokotwane said there is need for the sector to raise the bar by ensuring outstanding customer experience to reduce the many complaints by policyholders.

Dr. Musokotwane, who was represented by Ministry’s Acting Permanent Secretary for Economic Management and Finance, Mulele Mulele, also called for collaboration between the public and private sectors in mitigating climate related risks and cushion their effects on the citizens and businesses.

He further stressed the need for citizens to consider ways to diversify their income and manage risks which they face, noting that Insurance is a key avenue to prepare for the unexpected calamities.

“Our appeal to the insurance industry is to raise the bar, ensure the customer experience is so outstanding that the complaints against insurance become a thing of the past. Goodwill and reputation are invaluable assets, and changing public perception will remedy a lot of the challenges faced when trying to market insurance. I implore each one of us do our part,” Dr. Musokotwane stated.

Dr. Musokotwane also pledged Government’s commitment towards addressing the challenges faced by insurance providers due to the unique value chain that includes brokers, insurers and reinsurers.

“As Government we are aware of the challenges faced in provision of the required Zambia Revenue Authority transit bonds, and the need to review the legislation governing their provision. We are looking into this matter and hope to address the legislative differences in the near future.”

“We are also aware of the uncertainties around the use of the Smart Zambia system and intermediaries such as the online tax platform. The Government continues to work towards an amicable solution that will both satisfy the tax requirements without posing a risk of double taxation on the same policies,” he added.

Speaking at the same event, Pensions and Insurance Authority (PIA) Board Chairperson Peter Banda said the conference, provides a platform that offers an opportunity to sharpen the industry into delivering products and services that are relevant to risks that the public is facing.

Meanwhile, Insurers Association of Zambia (IAZ) President Irene Muyenga, said the 2024 Insurance Conference theme; underscores the industry’s imperative to tackle Environmental, Social and Governance (ESG) challenges, noting that there are environmental risks, such as climate change, which poses significant threats to farmers and the country at large.

“The Insurance sector was able to respond to the crisis, as exemplified by recent pay-outs under the FISP weather index insurance program. but we must be prepared for more environmental challenges to come,” Mrs. Muyenga noted.