Zambia's Insurance Industry Continues to Grow, but Penetration Remains Low

 By Daily News Reporter

Lusaka, Zambia - The insurance and pensions industry in Zambia has demonstrated remarkable resilience and growth, according to the Pensions and Insurance Authority (PIA) during the media engagement in Lusaka.

Speaking at a recent event, PIA Registrar and CEO Mrs. Namakau M. Ntini highlighted the industry's progress, citing regulatory updates, including micro insurance regulations, market conduct regulations, and reinsurance regulations. These regulations aim to build public confidence, expand financial inclusion, and strengthen the industry's foundation.

Mrs. Ntini also gave the update on the key highlights that Expected to close 2025 with assets over 13 billion Kwacha and liabilities of about 11 billion Kwacha, representing a 12% growth.

For the Net assets value stood at 25.6 billion Kwacha as of September 2025, with contributions increasing to 745 million Kwacha.

 Introduction of micro insurance regulations, market conduct regulations, and reinsurance regulations to promote financial inclusion and industry growth.

Mrs. Ntini noted that the industry is responding to climate-related risks and investing in climate resilience and

“Climate risk solutions can strengthen resilience for farmers and businesses...” She added

So far the industry is working to develop cyber insurance products and promote cyber security practices.

And soon PIA will be launching a regulatory sandbox to foster innovation and address emerging risks.

Mrs. Ntini emphasized the importance of collaboration between the industry, regulators, and stakeholders to promote financial inclusion, strengthen the industry, and contribute to Zambia's economic development.

The PIA's efforts aim to enhance the industry's contribution to Zambia's economic growth, improve financial inclusion, and promote sustainable development. Zambia’s insurance industry continues to post strong growth in premiums, yet penetration remains stubbornly low,

Meanwhile according to remarks made by PIA Manager Market Development (Pensions), Mr. Aaron Mukuwa

Figures show that total industry premiums have risen consistently over the past six years:

2024 • K9, 500,000,000.00 (22%)

2023 - K7, 811,349,000.00 (13%)

2022 - K6, 032,887,712.00 (12.8%)

2021 - K5, 343,896.183.00 (16.9%)

2020 - K4, 568,502,223.00 (21.6%)

2019 - K3, 756,796,261.00 (18.0%)

2018 - K3, 182,855,089.00 (16.2%)

Despite this upward trajectory, insurance penetration stood at just 1.3% in 2023 and 1.4% in 2024, underscoring the challenge of expanding coverage across households and businesses. A Film Scope survey currently underway is expected to provide updated penetration ratios for 2025.

Mr. Mukuwa also highlighted climate change as one of the most pressing issues facing the sector. Droughts and load-shedding have hit farmers’ hard, prompting initiatives such as FISP, which aim to cushion agricultural producers against climate shocks.

Authorities are also promoting green finance, encouraging insurers to provide coverage for institutions engaged in sustainable projects. “Insurance must play a role in building a resilient society,” Mukuwa emphasized.

The Insurance Act of 2021, now in its third year, introduced a risk-based solvency framework. Regulators are also rolling out new rules for micro insurance, medical insurance, marine insurance, and claims settlement procedures.

To foster innovation, regulatory sandboxes have been established, allowing insurers to test products in controlled environments under oversight.

The Zambian insurance industry’s story is one of growth and transformation. While premiums continue to rise, the sector must overcome challenges of penetration, trust, and skills to fully realize its potential. With reforms, green finance initiatives, and innovation through sandboxes, the industry is positioning itself for a more resilient and inclusive future.

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