PIA Observes Iincreased Demand For Climate Related Insurance

Pensions and Insurance Authority (PIA) says it has observed an increased demand for climate related insurance.

Speaking at the official opening of the 2024 Insurance Conference in Chongwe, Authority Registrar and Chief Executive Officer, Namakau Ntini said this is as a result of the challenges induced by climate change.

Mrs. Ntini stressed the need for industry players to enhance development and investment in green products to respond to the demand for climate related insurance.

“While we recognize that a few more insurers have joined the FISP insurance product, we would like to see more insurers developing innovative products suited to customers affected by extreme weather events, beyond FISP, including other social and economic challenges,” Mrs. Ntini stated.

She also urged Insurance firms to show commitment towards treating policyholders fairly, and ensure efficient claims processing, and fraud prevention mechanisms in order to build trust and confidence in the market.

“Let us collectively work towards making insurance a household name in Zambia as a reliable risk mitigation solution. By developing innovative products, prioritizing innovation, treating customers fairly and curtailing fraud, we can amplify the industry’s impact and relevance in the community,” she added.

She further challenged the industry to realign strategies with the evolving economic, environmental and social dynamics placing customer needs at the forefront of their efforts.

Speaking at the same event, Insurers Association of Zambia (IAZ) Executive Director Dr. Nkaka Mwashika noted that the industry contributes significantly to long-term financial stability, by safeguarding people’s hard-earned investments.

Dr. Mwashika emphasized that effective risk management through insurance enables businesses to rebound from adversity, and helping institutions and individuals to avoid financial setbacks.

“Insurance plays a pivotal role in society, by providing a financial safety net against unforeseen losses. By cushioning businesses and households from financial shocks, insurance facilitates swift recovery and continuity of economic activity,” he said.

The 2024 Annual Insurance Conference is being held under the theme: “Adapting to the changing landscape of economic, environmental, and social risks.”