By CHATULA KANGALI –
THE insurance industry in Zambia has recorded a general decline in risk covers due to the global financial meltdown.
Zambia State Insurance Cooperation (ZSIC) Life Limited board chairperson Enerst Beele said the global financial meltdown had negatively affected the insurance industry which has seen a reduction in the number of risks covered by clients.
He said most clients were shunning the services and opting for the cheapest products in order reduce on costs.
“The financial downturn has negatively affected the economy of Zambia, like any other financial sector, insurance is feeling the pains of the
global financial meltdown, and players in the market are seeking ways to remain above board.
Dr Beele said this during the official opening of the new ZSIC Life branch at Inengo house in Ndola on Friday last week.
He added that products in the life category were becoming difficult to sell as clients preferred to use their income on household goods to insurance products.
Dr Beele said ZSIC was working on getting the un-insured in the informal sector on board through the provision of micro-finance.
He announced that ZSIC Life Limited had implemented a business plan that would see the company increase its market share and remain profitable.
He said the strategy would attract tailor-made products and prompt settlement of claims.
Copperbelt Minster Mwenya Musenge said the branch expansion programme played a critical role in increasing access to insurance services.
Mr Musenge in a speech read for him by his permanent Secretary Howard Sikwela urged ZSIC Life to consider opening branches in rural areas with economic potential but without financial services.
“It is disheartening that some of our people in rural areas have continued to travel long distances in accessing financial services. I am encouraging you to open new branches in places like Chavuma, Lufwanyama and the like,” he said.
Mr Musenge said the opening up of new branches would not only increase financial inclusion uptake but also provide the insurance company with new customers.