Zambia’s insurance sector grew by 13% in 2022-IAZ

• The 2022 performance of the insurance sector is cause for optimism.
• The sector recorded both a growth in premiums, as well as an increase in settled claims.
• Gross reinsurance premiums grew to K921 million.

Insurers Association of Zambia (IAZ) has disclosed that the insurance sector grew by 13% in 2022 as it recorded gross written premiums of K6.033 billion compared to K5.344 billion in 2021.
Association Executive Director Dr. Nkaka Mwashika told Money FM News that the gross written premium for non-life insurance stood at K3.867 billion compared to K3.514 billion in 2021, while life insurance was K2.166 billion in comparison to K1.830 billion in the previous year.
Dr. Mwashika also revealed that in the year under review, net claims increased by 20% to K1.87 billion from K 1.56 billion recorded in 2021, while earned premiums increased by 24% as they grew to K3.53 billion in 2022 from K2.85 billion in 2021.
“The 2022 performance of the insurance sector is cause for optimism. The sector recorded both a growth in premiums, as well as an increase in settled claims, which shows that the industry is meeting clients at their point of need. The reinsurance sector achieved exponential growth of 245.75% in gross reinsurance premiums from what was recorded in the year 2021. The gross reinsurance premiums grew to K921 million. The industry recorded an increase of 132% in underwriting profit to K1.656 million in 2022 from K 0.715 million in 2021.”
“The insurance industry shareholders capital, life fund and reserve increased by 31% to K1.47 billion in 2022 from K1.12 billion in 2021. Total assets and liabilities both increased by 30% respectively being an increase to K 7.42 billion from K5.69 billion and to K 5.96 billion from K4.57 billion from 2021 to 2022 respectively,” Dr. Mwashika stated.
He however disclosed that 37% of debt at the end of the year was either provided for as bad debt or was written off, thereby affecting the ability to pay claims, hence the current proposals for insurance to be sold on cash and carry basis.
“Net assets increased by 31% to K1.47 billion from K1.12 billion in 2021 in 2022. In the past 5 years, on average 17% of Insurance Business written during a calendar year remained uncollected at the year end.”
“The industry will work hard to maintain the growth that was experienced, to further enhance customer experience, and increase the insurance uptake even further,” he added.

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