Insurance Penetration and Growth in Zambia: Case of Lusaka Province

Abstract

The Insurance industry has also been steadily growing from 1971 when the industry became a monopoly under the Zambia State Insurance Corporation following the 1968 Economic Nationalization Reforms. Therefore, between 1971 and 1991 Zambia only had one insurance company and broker. Following the liberalization of the economy in 1992 the numbers have significantly increased with 27 insurance companies and 49 brokers at the end of July 31st 2014. The industry also now has two local reinsurance companies, 279 agents and a number of other players. However, the insurance penetration and growth has not been significant as expected. The research will bring out issues and factors surrounding the penetration and growth of insurance Industry in Zambia. The research aims to answer the following questions; why the insurance Industry penetration in Zambia is still low, still at 0.6% for non-life insurance and 0.3% life insurance? What are the barriers to insurance penetration and growth? What measures should be taken by players in the insurance industry to accelerate penetration and growth? What would be the opportunities and benefits for the fast growing insurance industry in Zambia? The objectives of the research were to examine why the penetration and growth of insurance industry is still low and slow.What policy measures can be taken to reverse this trend?