By CHATULA KANGALI –
THE Insurers Association of Zambia (IAZ) says there is need for Government to put in place a deliberate policy that will curtail the provision of insurance that support imports and exports.
IAZ President Chipango Mateto said that the provision of insurance that supports   import and exports should be localised as this would help increase the retention of premiums that go out of the country.
Mr Mateto said that the country was currently losing over one million dollars annually on importation of goods on Cost Insurance Freight (CIF).
He said the current Insurance Act states that all Zambian assets and interest must be insured by an insurance company which is resident in the country.
“As an insurance industry, we will continue working hard to see to it that the sector contributes to economic development and job creation, so we want Government to take a deliberate policy that will localise marine insurance,” he said.
Mr Mateto was speaking during the Zambia International Trade Fair (ZITF) chief executive officers’ discussion forum on how the private sector can reposition itself in national development.
Mr Mateto said the Government should also put in place a policy that will curtail the externalisation of re-insurance paid out to foreign re-insurance firms.
He said currently, only 15 per cent of the written business annually was re-insured by the local insurance firms.
He said the localisation of re-insurance would increase premiums hence allowing firms to reinvest heavily and in turn, create more jobs for the locals.
Mr Mateto, however, urged insurance companies to invest much in consumer awareness so that the country could increase the uptake of insurance by six million by the year 2019.
Meanwhile, Commerce Trade and Industry Minister Raymond Mpundu said,  a new Insurance Act was currently being drafted  at the Ministry of Justice  and was expected to be presented to parliament at the 12th National Assembly.