Back to Top

Hon. Mutati Calls on Insurance Sector to Double Contribution to GDP

Finance Minister Honourable Felix Mutati has called upon the insurance industry to double its contribution from the current less than 1.5% to 3%. Speaking during the official opening of the 2017 Insurance Conference in Livingstone, the Minister of Finance said insurance companies needed change the current business model and increase its contribution to GDP.

“Our target should be to double our contribution to the GDP and the insurance Bill is one step in that direction,” said Hon Mutati.

He further challenged the insurance sector to be innovative and raise public confidence by paying claims timely.

“Come up with innovations which will drive and expand the sector. Give us practical solutions. Help us in the financial inclusion strategy and also ensure the micro insurance begins to happen because it is critically important,” said Hon. Mutati.

The minister also announced that the PIA and the Ministry of Finance would not extend the minimum capital requirements for insurance companies is due on 30th September 2017.

“The minimum capital requirement will help firms build a solid and competitive insurance sector to strengthen the financial base of the industry,” said Hon Mutati.

According to SI 71 issued in 2015, the minimum paid up capital for general insurance companies and life insurance companies was increased from K1million to K10million K12million respectively. The minimum capital requirement for brokers was also increased from K50,000 to K100,000.

And speaking earlier during the same conference, Pensions and Insurance Authority (PIA) Registrar Mr. Martin Libinga called on the Zambian insurance sector to carry out an introspection during the conference and come with strategies that would enable it bounce back and reposition itself in the financial sector.

Earlier, Insurers Association of Zambia (IAZ) President Mr. Paul Nkhoma encouraged delegates to share experiences and build partnerships that would help in building a vibrant and stronger insurance industry.

The Conference was organized by IAZ and other stakeholders including PIA and was held from 18th-20th June 2017. It was attended by 165 delegates which included delegates from Ghana (represented by the Commissioner of the regulator in Ghana, Ms. Lydia Bawa), Ivory Coast, Zimbabwe, Kenya, Botswana and South Africa.