New policy measures to hunt us, says ZSIC
By Business Reporter
THE Zambia State Insurance Corporation (ZSIC) says that the new Bank of Zambia policy measures to stabilise the Kwacha announced last Tuesday would adversely affect the company’s business.
Managing director of ZSIC Alisand Singogo said at a budget preparation conference that the increase in the reserve ratio and the open market operations of withdrawing excess liquidity from the market will see an immediate impact on ZSIC operations.
Mr Singogo said that the company may have to scale down on its operations to create a balance between consumption and production.
“It is not easy because of our history but it has to be done,” he said.
He described the environment the company was operating in as “harsh internal and external environment that has influenced our planning for the forth coming year.”
Mr Singogo said following the announcement by the monetary authorities to increase the reserve ratio and open market operations will negatively impact on the operations of the company.
“The rise in monthly inflation from 1.4 to 1.8 per cent an increase of 0.4 percentage points will also affect our reinsurance placements as well as our day to day trading,” said Mr Singogo.
He however said that ZSIC can do little to control these factors and therefore should concern themselves with factors or aspects that it can control. The strategy that the company has taken is to begin to talk with its partners in business.
These include the client, brokers, agencies and sale representatives.
