The Pensions and Insurance Authority (PIA) notes that marine sector has potential in helping the insurance industry to grow.

The Authority says it is, in partnership with other stakeholders, currently working on domesticating marine insurance.

PIA Communications Manager Doreen Silungwe also notes that insurance companies need to increase their capital base to reduce on capital flight through reinsurance.

“Most insurance companies are unable to cover mega risks e.g. from mines and where they do, they reinsure outside the country” she said in an interview with Money News.

“However, they could retain a substantial amount if there capital was stronger.”

Ms Silungwe has further observed the need for the insurance industry to be competitive and innovative in order to attract the uninsured market.

The sector contribution to Gross Domestic Product (GDP) has been low at below 2 per cent.
Ms. Silungwe has said that to improve the sector’s contribution to GDP, there is need to increase insurance Penetration.

“The industry can increase its contribution by increasing insurance penetration which is currently still very low at 3%. To achieve this, the industry must become more competitive and innovative in order to attract the uninsured market.” Ms. Silungwe said.

Government on several occasions has bemoaned that the level of insurance penetration is still below six percent.

Meanwhile Ms. Silungwe has revealed that the PIA and industry have prioritized consumer education to help the public understand the benefits of insurance at personal and business level.

“This is done through various engagements throughout the year and includes the insurance week which is an annual event. The insurance week is dedicated to raising awareness on insurance and showcasing the various products in the insurance industry”, she stated.

The insurance week for this year will start on the 24th to the 28th of September 2018.