• The insurance sector has been growing by a double digit in the last 5 years.
• It is expected to continue to grow by between 14 and 15 percent between 2023 and 2026.
• The sector’s actual contribution to GDP is still quite low, roughly around 3 percent.
A Senior Economist says Zambia’s insurance sector has potential to grow by more than 3 percent and contribute significantly to Gross Domestic Product (GDP).
Speaking in an interview with Money FM News, Andrew Nsunge Nsunge noted that the insurance sector has been growing by a double digit in the last 5 years and it is expected to continue to grow by between 14 and 15 percent between 2023 and 2026.
Mr. Nsunge Nsunge observed that the sector’s actual contribution to the country’s Gross Domestic Product is about 3 percent, which is quite low.
“The industry is doing enough to contribute to GDP for Zambia. So if you look at the growth of the insurance industry in Zambia the last five years, it has been growing by a double digit, and it is expected to continue to grow by a double digit of by between 14 and 15 percent between now and 2026.”
“However, the actual contribution to the GDP to Zambia is still quite low, the insurance industry contributes roughly around 3 percent. There is more that can be done and the insurance industry can grow higher than those figures I have mentioned and contribute significantly to increase above where it is currently around 3 percent,” Mr. Nsunge Nsunge noted.
He attributed the industry’s low contribution to GDP to lack of awareness among Zambians.
“I think the challenge that is there is that obviously if you look at the Zambian population, about 40 percent of the population does not really understand the role that insurance plays, but I think there is a lot of sensitization that is happening. So once more people understand the insurance solutions and products, the sector will grow by more than 15 percent and contribute more than 3 percent to Zambia’s GDP.
Insurance can be defined as a means of protection from financial losses and the obvious and most important benefit is the payment of losses.
