Zambia’s Insurance Penetration Ratio remains below 2 percent – PIA

Pensions and Insurance Authority (PIA) has disclosed that Insurance Penetration Ratio (IPR) has remained below 2%, as reflected in the results from 2022 and 2023.

Speaking at the PIA media training workshop in Chongwe, Authority Deputy Registrar Dr. Brian Manchishi attributed the low uptake to lack of awareness and understanding of the Insurance services.

“This underscores the vital role of the media in bridging this knowledge gap and highlights the necessity for a collaborative effort among all stakeholders to drive awareness and improve access to insurance solutions,” Dr. Manchishi stated.

He however revealed that the Insurance sector recorded a Gross Written Premium of K7 million in the third quarter of 2024, compared to K6 million recorded during the same period in 2023, representing a growth rate of 16.2%.

Gross written premium (GWP) is the total amount of money an insurance company collects from customers for insurance policies, before any discounts, refunds, or expenses are taken into account.

Despite having a low penetration ratio in the last years, the Zambia Insurance Industry remains resilient, recording a 16.2% growth rate in terms of gross written premium (GWP) compared to the third quarter of 2023,” he stated.

He said the industry growth rate was attributed to increased fire, life and health insurance uptake.

Meanwhile, Dr. Manchishi disclosed that with regards to Pensions Industry, the private occupational pension schemes net assets rose from K18.28 billion as at 30th June, 2024 to K20.12 billion as at 30th September, 2024, indicating an increase of K1.84 billion or 10.05 percent.

He attributed the increase in net assets to foreign currency exchange gains largely on offshore investments, increase in the fair value gains on listed equity and reduction in benefits paid during the quarter under review.

“Pensions Industry has continued to record a positive growth in net assets despite the setback suffered from the effects of the drought that has affected food security and hydro power supply,” Dr. Manchishi noted.

And Dr. Manchishi encouraged Journalists to inform the public not only on the developments of the Pensions and Insurance industries, but dig deeper into sharing success stories of how people have directly benefited from the two sectors.

He further urged the media to demystify some of the misconceptions surrounding Insurance and Pensions to help increase the uptake.

“In today’s rapidly evolving world of social media, the need for bona fide media cannot be over emphasized as they serve as the guardians of truth and the catalysts for change. Individuals and businesses alike encounter risks that can impact their financial stability and operations.”

“Insurance is one of the tools that they can use to mitigate these risks by providing financial protection in the event of a loss. To this end, the need for clear and insightful journalism on insurance and pensions has never been more critical,” Dr. Manchishi emphasized.

The media training workshop was held under the theme: Enhancing Media Coverage on Pensions and Insurance in Zambia.