Insurance companies pay out over K1 billion in claims

The Insurance Association of Zambia (IAZ) says the insurance industry paid out over K1 billion in insurance claims in 2016.

IAZ president Paul Nkhoma says this is an increase of 35% from the K735 million paid out in 2015.

Mr Nkhoma says general insurers paid out K675 million in claims while life insurers paid out a total of K365 million.

And Mr Nkhoma has advised the insurance sector in the country to ensure Micro Insurance packages are well designed, made appropriate and affordable if standards of living for people in low income bands are to be uplifted.

Micro Insurance is targeted at low income households and individuals who are vulnerable to risks which can be insured.

Speaking at a media briefing, Mr Nkhoma notes that lack of insurance awareness has been one of the leading causes of low insurance penetration levels in the country.

He says it is therefore important for the insurance industry to make deliberate efforts towards raising awareness for the service as it helps create the much needed safety net when calamities strike.

Meanwhile Pensions and Insurance Authority Registrar Martin Libinga says the Authority will continue fostering the growth of the sector through consumer education.

He says such initiatives have contributed to the increase in gross written premium.

Mr Libinga says the insurance industry recorded an overall 17 percent in terms of gross written premium turnover between January and   December 2016 compared to same period in 2015.

Mr. Libinga says the gross written premium increased to K2.5 billion from K2.1 billion recorded in 2015, in quantum.