The Pensions and Insurance Authority (PIA) has stressed the importance of intensifying awareness and improving understanding of insurance services in Zambia to boost the sector’s uptake. This comes as the authority observes a continued challenge in increasing the country’s insurance penetration rate (IPR), which remains below two percent.
At the 2024 PIA media workshop held recently, Dr. Brian Manchinshi, the Deputy Registrar of Insurance, highlighted that the media plays a crucial role in bridging the knowledge gap and promoting the benefits of insurance to the general public. He called for collaborative efforts among all stakeholders to drive awareness and improve access to insurance solutions across Zambia.
Insurance Sector Growth Amid Challenges
Despite the low insurance penetration rate, the insurance industry has shown resilience, recording a 16.2 percent growth in Gross Written Premium (GWP) for the third quarter of 2024. The GWP stood at K7,094.3 million compared to K6,104 million in the same period in 2023. Dr. Manchinshi attributed this growth to increased uptake of fire, life, and health insurance products, which have shown promise in contributing to the sector’s performance.
“The industry growth rate is encouraging, but we still have a long way to go in terms of broadening access to insurance services,” Dr. Manchinshi stated. He further emphasized the need for collaborative efforts among insurance companies, the government, and the media to reach a larger portion of the population, particularly in rural areas where awareness remains limited.
The Role of the Media in Insurance Education
Dr. Manchinshi acknowledged the media’s critical role in educating the public about the value of insurance products and how they can be leveraged to mitigate risks and provide financial security. As the country seeks to enhance financial inclusion, the media is seen as a key partner in demystifying insurance, making it more accessible and understandable for all Zambians.
Challenges and the Path Forward
Despite the growth in GWP, the insurance sector continues to face challenges in increasing penetration rates, which remain a concern for the long-term development of the industry. Factors such as low public awareness, misconceptions about insurance products, and limited access to affordable insurance options have hindered widespread adoption.
To address these challenges, the PIA is calling for a more concerted effort from all parties, including the government, insurance providers, and the media, to increase public education, improve product offerings, and create an enabling environment for insurance growth. With increased collaboration, Zambia can unlock the potential of its insurance sector and provide greater financial security to its citizens.
As Zambia’s insurance industry continues to grow, the PIA’s emphasis on raising awareness and increasing understanding is essential for achieving the long-term goal of enhancing financial inclusion and improving the resilience of the population in the face of economic challenges.
