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Government encourages Insurance Companies to integrate to GRZ Service bus

• The Ministry is keen to promote safe, cost-effective and reliable delivery of financial services using ICT platforms.
• Financial inclusion is part of government’s agenda.
• Government is determined to have digital platforms that are integrated.

Minister of Technology and Science says government is working to design and implement digital platforms that will ensure convenience, efficiency, reliability, transparency and accountability.
Speaking during the launch of the Digital Motor Vehicle Insurance Certificate Online Payment System, Felix Mutati said government’s digital transformation has been designed to ensure delivery of services to citizens and businesses, as well as moderate efficiency within government ministries and departments.
Mr. Mutati states that government is determined to have digital platforms that are integrated so as to provide a one government solution such as the Government Service Bus which is aimed at ensuring that all revenue collected from Zambia Revenue Authority (ZRA), Road Transport and Safety Agency (RTSA) and other government institutions is integrated in one service bus.
“As the Ministry of Technology and Science, we are keen to promote safe, cost-effective and reliable delivery of financial services, using ICT platforms. Financial inclusion is part of our agenda, and this means making sure more and more Zambians can also make use of formal financial services. We believe this will help improve financial inclusion,” Mr. Mutati said.
He revealed that his Ministry is currently reviewing the Information Communications Technology Act and in the midst of drafting the digital transformation strategy.
“These documents will guide the nation on what is needed to be implemented as we transform our country into a digital society. I am confident that by adopting new technologies, and increased use of ICT platforms, will help us build a stronger and sustainable economy,” he stated.
And Mr. Mutati noted that the Insurance Sector plays a vital role, as a provider of short term and long-term financial protection, adding that financial protection helps people recover from the financial shocks that result from unexpected and untimely losses.
He said insurance can help the public deal with financial losses – caused by fires, floods, theft, accidents, drought, bereavement, the cost of medical treatment and financial needs at retirement, that have devastating effects.
“Insurance is also a key feature of any developed or developing nation. Currently, Zambian the insurance market recorded an 18.75% turnover increase in 2019. The latter went from 3.2 billion ZMW (266.48 million USD) in 2018 to 3.8 billion ZMW (272.16 million USD) one year later. This increase is driven by an insurance penetration rate of 2.63% against 2.29% in 2018.”
“There is need for insurance companies through the regulator to carry out capacity building campaigns among the citizenry to increase the understanding of benefits that come with insurance. We are confident that adoption of digital platforms can also help in achieving this goal.
And Mr. Mutati disclosed that out of 900, 000 vehicles in the RTSA database, only 400, 000 have fitness certificates while 300,000 are insured, a situation he said needs to be seriously addressed.
“Let me take this opportunity to also urge and encourage insurance companies to integrate to the Government Service Bus so as to realize the benefits of the system some of which are, eliminate fraud, involving forging of Motor Vehicle Insurance Certificates, which reduces business for Insurance Companies. It also reduces the costs of doing business, because the solution is a virtual branch, which can be made available to customers anywhere with internet access.”
Speaking at the same event, Insurers Association of Zambia (IAZ) President Moses Siame thanked government for making efforts to ensure that rural communities are reached in terms of internet connectivity in order for them to access various insurance services using digital platforms.
“Technology is not only a great equalizer but an enabler as well. It enables service providers to deliver services most efficiently and cost effectively. Technology further goes to resolve challenges which ordinarily would not be resolved by traditional means,” he said.
Meanwhile, Pensions and Insurance Authority (PIA) Manger-Marketing Department Yizaso Musonda pledged to play a pivotal role in ensuring that the launched system satisfies the needs of the industry and the public at large

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