PIA LAUNCHES INSURANCE REGULATORY SANDBOX TO DRIVE INNOVATION AND INCLUSION 

By Daily News Reporter 

n the Financial sector shaped by rapid technological change and growing digital adoption, Zambia has taken a decisive step toward modernising its insurance industry with the official launch of the Insurance Regulatory Sandbox.

The milestone initiative, unveiled by the Pensions and Insurance Authority (PIA), is designed to create a controlled, time-bound environment where insurers and innovators can test new products and business models under regulatory supervision — without compromising consumer protection or market stability.

Speaking at the launch, Deputy Registrar and Chief Executive Officer Dr. Brian Manchishi described the sandbox as a strategic response to a fast-evolving financial ecosystem.

“As the insurance regulator, our core responsibility has always been to protect policyholders, ensure market stability, and promote orderly development,” he said.

 “But we are now operating in an environment reshaped by technology, data and new delivery models.”

Over the past month alone, Zambia’s digital financial space has witnessed notable developments, including the launch of insurance marketplaces by MTN MoMo and Airtel Money — platforms expected to expand access to insurance through mobile phones.

While such innovations promise greater financial inclusion, regulators say they also raise complex supervisory questions. Traditional regulatory tools, Dr. Manchishi noted, are no longer sufficient to address emerging risks in technology-driven insurance models such as parametric products, index-based coverage, and digital underway.

Pensions Insurance Authority (PIA) Registrar and CEO Mrs. Namakau Mundia Ntini described the launch as both “a celebration and a statement of vision.”

She revealed that a 2025 Innovation Portrait Study — conducted with support from Financial Sector Deepening Africa and Cenfri — found that although Zambia’s insurance sector is not yet highly innovative, its transformation potential is substantial.

The study also highlighted a critical gap: despite a steady increase in licensed insurance entities, growth has not translated into significantly expanded insurance inclusion. Product diversity remains limited, and outreach to underserved communities is still minimal.

Currently, insurance uptake in Zambia stands at just 6.3 percent. Under the Second National Financial Inclusion Strategy, the country aims to raise this figure to 15 percent in the coming years.

“We cannot speak of a prosperous and inclusive Zambia by 2030 while a significant portion of our population remains outside the formal financial safety net,” Ntini said

At the heart of the sandbox initiative is the ambition to extend coverage to those traditionally excluded from formal insurance markets — small-scale farmers, informal traders, rural households, and micro-entrepreneurs.

Digital platforms and microinsurance solutions are seen as key tools in closing the protection gap. Officials say the sandbox will allow innovators to test products tailored to specific consumer needs, including agricultural and climate-risk insurance to protect farmers against drought and livestock disease.

The initiative also seeks to encourage inclusive design — ensuring that digital solutions consider persons with disabilities, including those with visual impairments who rely on tactile interfaces for navigation.

“How can digital distribution meet potential policyholders where they already are?” Ntini asked. “How do we design products that work for the informal trader in Soweto, a farmer in Lundazi, or an entrepreneur in Kitwe?”

The regulatory sandbox aligns with Zambia’s broader economic transformation agenda, as outlined in the Eighth National Development Plan championed by President Hakainde Hichilema, which emphasises innovation, digitisation and diversification as pillars of growth.

By fostering responsible experimentation within a supervised framework, the PIA hopes to strike a balance between enabling