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 CONTENTS
Christabel Banda 3. Editorial Note
Executive Director
5. President’s Note
Editorial Note
6. How Insurance Fosters
The idea of a home grown economic recovery program is Development in the nation
exactly the prescription the country needs to bounce back
after a turbulent 2016. The economic recovery program 8. Collaborating for
dubbed “Zambia plus” is aimed at restoring fiscal fitness for growth in Insurance
Sustained Inclusive Growth and Development, which was
the theme for the 2017 National Budget. In responding to
the looming recovery our 3rd instalment of the Insurance
12. Standing out from the Crowd
Conference has been dubbed “Bouncing Back from Hard
Times”, which will be focusing on the industry repositioning
15. Good Stewardship for
itself as the country goes through the recovery process.
sustainable growth
The conference this year will be held from 18th to the 20th
of June, the details for the conference are in this issue,
17. IAZ 2017 Insurance Conference
please make a date.
22. Investing in tomorrows leaders
The Insurance market in Zambia is excited this year as we
have been assured that the long awaited new Insurance
24. Personality Spotlight:
Act will be enacted in 2017. This will help unclog a lot Mr. Paul Nkhoma
of bottlenecks in the provision of this crucial service.
The new Act is expected to pave way for the growth of
Microinsurance, which is currently not recognised in the
26. Changing Dynamics
1997 Insurance Act in use. The new Act will also expand
the categories of market participants and also has 28. Screening Fraud
provisions that will enhance good corporate governance
in the management of the licensed entities. This is indeed 30. Seeing value the customer
good news for all, especially the insuring public. way
We continue with our message on the importance of 35. Insurers Directory
insurance with our lead story talking about how Insurance
Fosters economic development. We also look at some
interesting collaborations that are aimed at growing the
insurance sector. Our personality profile in this issue is
the President of the Association, Mr Paul Nkhoma who
took over the reins of the Association in September 2016.
These and more exciting articles make up this April/May
2017 issue.

We hope that you will be informed, inspired and motivated

to take out an Insurance policy.

Enjoy the pages….

6
Editor - in - Chief Christabel Banda
Editor Kambole Chituwo
Graphic Designer Abraham Banda
Email [email protected]
Phone +260 211 238704
3|
12 28
Zambian Insurance Journal
 Paul Nkhoma
NOTE FROM OUR PRESIDENT

The Zambian economic climate continues to edge towards reversing the downward trends
experienced last year. We are by no means out of the waters, but thereare a number of
economic indicators showing signs of stability. Stability has been seen from reducing interest
rates, stable exchange rates and reducing single digit inflation rates, all adding to positive
expectations for the coming months. The key will be how disciplined government will be in
implementing a strict fiscal policy.

From the insurance sector, we are all eagerly awaiting enactment of the Insurance Bill
2013, which is expected to go to Parliament this year. We are confident that once the Act is
enacted it will positively impact the performance of the insurance sector. The deadline for
implementation of the increased minimum capital requirements is fast approaching and my
appeal to all members who are below the minimum required capital, is to ensure that your
shareholders are adequately advised and that the regulator is updated regularly on plans of
individual members recapitalising prior to the deadline date. Members are also encouraged
to use this opportunity to also explore options of mergers which will allow entities to come
together, combining not only capital, but technical skills and knowhow which can only be
beneficial for our insuring public.

The Social Protection Bill, formulated under the Ministry of Labour and Social Security, will likely
have an impact on private Pension Schemes. And then there are the dynamics surrounding
efforts to formulate a basic pension for those working in the informal sector, as well as a basic
national health insurance programme. These are still in formulation stage and we will continue
to monitor progress with much interest, providing input as stakeholders on various platforms.
The insurance sector must also be ready to adapt once these changes are passed.

In our continued efforts to increase the number of Zambians that take up insurance, we must
look beyond the positive impact of change in legislation, to ways we can directly engage the
public and stimulate increased demand. This will, however, only be fruitful if we go the extra mile
to educate clients, to outline clear complaints procedures in the event that a customer is not
satisfied, and to make more use of mass and social media. Decisions are shaped by knowledge,
and we can shape how people respond to risk management needs by the information we give
the general public.

We also hope that the insurance Journal will stimulate discussion on all things insurance and
serve as a tool that contributes to consumer awareness and industry collaboration. In this
latest edition, we look at how insurance is vital for further economic growth, we are reminded
to uphold a customer-centric business approach and we are urged to invest in tomorrow’s
leaders, the next generation. We hope that you will find these articles insightful and that they
will contribute positively to your endeavours.

5| Zambian Insurance Journal

HOW INSURANCE
FOSTERS DEVELOPMENT
IN THE NATION

The need to know Index, because GDP will not for millions around the world,
indicate the distribution of wealth including addressing the dire
The role of insurance in sustaining and resources and may distort our needs for health, education and
and growing the economy is understanding of poverty levels, combating poverty, among others.
rarely understood. Even other while several other indicators such
practitioners in the wider financial as lower middle-income status are In line with the 17 goals, several
sector have not fully appreciated also used. Whatever parameters international cooperating partners
the role of insurance. Risk you use, the general goal is to foster have recognised the role insurance
management takes many forms, an increase in national wealth and plays in development, as can be
and insurance is an important secure long-term financial well- demonstrated by the projects
means of transferring the being of our citizens. Long term, undertaken in this regard. The
financial risk. Productivity, skills sustainable wealth creation and International Labour Organisation
development, wealth distribution equitable economic opportunities (ILO) Impact Insurance
and prudent financial oversight are are our goal if Zambia is to develop programmes are designed to
essential ingredients for any lasting beyond this stage. And insurance encourage growth of insurance in
and meaningful development. plays an integral part. developing nations as a means of
But insurance provides that safety poverty reduction and protecting
mechanism that prevents all these The United Nations Sustainable the livelihood of those in the
economic gains from being swept Development goals also informal sector. Their initiatives
away by one misfortune. highlight the same areas for includes providing online courses
human development [For more in Microinsurance which are
There are many ways that economic on SDGs visit: http://www. available at no cost. Another
growth is measured, most un.org/sustainabledevelopment/ organisation that has recognised
commonly using GDP, the measure sustainable-development-goals/]. the value of insurance for
of the value of total number of The SDGs have taken over from the development is the Financial Sector
goods and services produced in Millennium Development Goals as Deepening Africa Programme,
a nation. Some are beginning to the broad international focus for with localised initiative in several
favour the Human Development improving the standard of living African countries. The Financial

6| Zambian Insurance Journal

Sector Deepening Zambia had left behind a generation ago. If “why” of the company’s response
(FSDZ) programme has been an we want to not only create wealth to their query, especially where this
instrumental partner in promoting but build a heritage, we need to involves a delayed or even rejected
development of microinsurance make full use of risk management claim. We need to make it clear that
products and carrying out options that are available, to see to insurance exists to pay claims –
consumer education activities. it that even the third generation that is the only reason anyone buys
from us will be able to benefit from it, for that safety net. And in the
The task falls on us to ensure that our hard labour, and even achieve instance where controversy arises
we are part of this progressive much more. We want a scenario (e.g. when an unlicensed driver
drive to reach more Zambians where the coming generations will borrows a car and has an accident),
and educate them on the need be able to stand on our shoulders, we must be as clear and cordial as
to make appropriate use of risk bolstered by what we have possible in discussing the matter.
management and loss mitigation accomplished and ambitious for so Technical proficiency is essential,
tools, of which insurance plays an much more. and the more the better, but as we
important part. seek to develop technical skill and
This cannot happen if we remain efficient systems, let us remember
Loss mitigation in a precarious financial position. that a key part of those systems
Various insurance products is how we communicate with the
When members of the community speak to the long term and short people we serve. Building a brand
are fighting to improve their term needs of this group, and for reputation is one of the most
standard of living, the low income sustained development we must powerful tools in capturing public
segment of society is the most take seriously the value proposition confidence, so that all our actions
vulnerable for a number of reasons. of the various products. will be taken in good faith.
Firstly, they have little capital and
little capacity to recover if they Bridging the information gap Recently, stakeholders, which
lose that capital. An illness in the include Pensions and Insurance
family (and thus medical bills) or With less than 3% of Zambians Authority, Bank of Zambia, IAZ
theft of stock, can deal a decisive making use of insurance products, and others, met to discuss the
blow to the fortunes of that family. the challenge is real, and the National Financial Inclusion
Often they have nothing like number one challenge on the list is Strategy, and the benchmarks
savings and no one to assist, so lack of awareness. People basically and key actions to bring more
financial recovery will take a long do not know what insurance really Zambians to use financial
time. Mitigation measures could is and how it works. We will be services. We are optimistic that
involve a child having to drop out quick to admit that the satisfied this government policy will
of school, selling household items customer will not stand on the roof help synchronise efforts and
such as a TV or even business top to shout about his successful pool resources to see that more
assets such a sowing or popcorn interaction with insurance Zambians make use of insurance at
machine. It could take years for providers – it is the unsatisfied all levels of society.
this family to recover and by then customer who will do that! The
it may be difficult for children to intangible nature of insurance Development is a long term
return to school. means that education and public endeavour, and we must constantly
relations are key to increasing keep the big picture in mind, even
When we come to the emerging uptake of insurance. We should not as we go about our daily business.
middle class, the struggle is to underestimate the power of one Development is like planting a tree,
maintain the standard of living unsatisfied customer unleashed it will take time to see the fruits
and avoid falling back into a low on social media. Every company of our labour. Likewise, as society
income position. The risks are needs to have a clear complaints learns to manage financial risks and
still very real, and there have been procedure, and in the event that the take up insurance, the long term
several instances when perhaps customer does not have a genuine benefits will become clear over
at the demise of a loved one the compliant, we must at least be seen time. The insurance sector must see
family has to revert to a standard to bend over backwards to help itself as a strategic partner in the
of living that they thought they them appreciate the “what” and national development process.

7| Zambian Insurance Journal

 By Maiwase Chilongo

Collaborating for
GROWTH IN INSURANCE
The importance of collaboration and Zambian Reinsurance to two income generating sectors in
in the growth of the Insurance and Moroccan like-minded which women are heavily involved,
Market is necessary especially from organisations aimed at enhancing that is market trading and farming.
government who are currently intergovernmental co-operation. It is estimated that women make up
being lobbied by the Insurance Industry has also engaged with 46% of the agricultural labour force
Industry on various matters. government through the regulator, (FAOSTAT, 2014) and that the
Collaborations with various private the Pensions and Insurance majority of marketeers in Zambia
sector entities are also required, Authority (PIA), to propose are women. It can therefore be
especially in the distribution of adjustments to the Insurance Bill assumed that a product targeting
Insurance products. in order to bring it up to date and these two informal sectors would
it is hoped that the Bill will be help in uplifting the women folk
Government’s involvement in passed in 2017. Government, as and contribute significantly to
promoting the growth of the per the President’s September 2016 accommodating the financially
Insurance industry has been Official Opening of the twelfth excluded populace, which for
evidenced by the signing of National Assembly address, also females stands at about 53%
various agreements in the presence demonstrated its commitment to (Finscope 2015).
of the Republican President, passing the Social Health Insurance
His excellency, Edgar Chagwa Bill. The MOU was signed on the 14th
Lungu and the King of Morocco, January 2017 between Liberty Life
Mohammed VI of Morocco, One private sector collaboration Zambia, Uniturtle and Zambia
between Zambian Industry players worth mentioning is the National Marketeers Credit
such as the Insurers Association Memorandum of Understanding Association (ZANAMACA).
of Zambia (IAZ), ZISC General (MOU) to offer funeral insurance Liberty Life Zambia, which

8| Zambian Insurance Journal

established operation in 2015, is through the Funeral Insurance Councillors out of the 33 Lusaka
passionate about wealth creation product called Tontozo. Tontozo, Wards and Kanyama Member of
and develops products that meet The Comforter, offers cover of up Parliament, Elizabeth Phiri, who
the needs of the target market. to K20,000 for as little as K17 per commended the product and
Uniturtle is a holding company month and claim payment within expressed hope that the net would
and its subsidiary, Ambassador St 48hrs. be cast wider with the partnership
Ann’s Funeral Home are passionate with ZANAMACA.
about empowering Zambians The tripartite MOU signing was
with the facilities and ability to officiated upon by the Honourable In order for the Industry to move
put their loved ones to rest in a Minister of Justice, Mr Given in line with the national direction
dignified manner and believe in Lubinda who encouraged more as well as private sector trends
doing this by providing simple, Insurance companies to come up Insurance players must look for
understandable and affordable with easy to use reliable insurance opportunities to enter into Public
products. covers that will pay out benefits Private Partnerships (PPPs) and
quickly if premiums are fully paid create strategies that move in line
ZANAMACA brings together up. Noting the vast benefits that can with the 7th National Development
marketeers and small scale farmers be derived from insurance products Plan 2017-2021. As well as engage
and is dedicated to empowering the Honourable Minister welcomed regularly with other private sectors
the informal sector. These three proposals from the insurance players to identify collaborative
organisations have come together industry for policies and regulation opportunities.
to reach out to the informal sector that will help to grow the market.
to provide the financial backing to Other government officials present
be able to provide funeral services at the event included 11 Lusaka

9| Zambian Insurance Journal

 gives youFocus Medical C
hospitals acc over
and covess to all private Monthly
ers da
medical y to day an indiv Premium for
such as: of 5 (2 adidual and a fam
ults & 3 c ily
Gps hildren) p
Specialist • F or more er plan.
s • informati
Optome please se on,
trists • e contac
Pharmac tdetails b
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Dentists 09710293
56
• life@focu /7
s.co.zm
Standing out from the
crowd
We seem to be drowning in media
content, so many voices calling
these coveted heights and stand out
from the crowd.
has championed and managed
business acquisition strategic
for our attention. The task that plan. Her outstanding work has
marketing faces head on is that Chilufya Ngoi-Nyirenda (MSc, been recognised, as she featured
task of distinguishing your brand DipM, MCIM, MZIM) has been and was conferred with the 100
so that people can stop and pay responsible for overall business MOST INFLUENTIAL GLOBAL
attention to the value statement you growth of Barclays Life Zambia MARKETING LEADERS listing
have to offer. It is more than just Limited with regards delivery of 2016 citation by the World
standing up to speak, its standing Short Term to Medium Term Plans. Marketing Congress in Mumbai,
out from the crowd, standing up Chilufya has taken a lead role in India.
to be counted and counting for strategy design and MTP budget
something an effort to deliver formulation for all business lines The 100 Most Influential Global
quality services to the right people (Credit Life, Individual Life and Marketing Leaders listing celebrates
at the right time. Every now and Group Life) since inception of individuals who do extraordinary
then, someone manages to achieve the business in August 2012 and work and track the record of their

12 | Zambian Insurance Journal

 Through her hard
work, dedication and
tenacity, Chilufya
helped Barclays Life
Zambia by delivering
an innovative Short
to Medium Term
Strategy Plan which
grew the bank’s
standalone sales

achievements. The criteria adopted Her strategic contribution yielded Innovative Customer Solutions,
were: great results in the Individual Life Seamless Distribution Experience
and Group Life product lines, with and Extraordinary Capable People.
• Marketing Competencies notable success in standalone in-
force book growing by 60% year-on- Chilufya holds a Master of Science
• Strategic Perspective & Future year by end of 3rd Quarter 2016. Degree in Global Consumer
Orientation Marketing (MSc MCM) with the
Chilufya is a full member of the University of Liverpool (UK), a
• Traack Record, Integrity and Ethics Chartered Institute of Marketing Professional Post Graduate Diploma
• Commitment to Sustainability (MCIM) and Zambia Institute of (DipCIM) with Chartered Institute
(Business, Social & Environmental) Marketing (MZIM); in additional of Marketing (UK) and graduated
to being an Alumni Member of her studies in Innovation & Strategy
Through her hard work, dedication the University of Liverpool and Programme with University of
and tenacity, Chilufya helped University of Oxford – Said Business Oxford – Said Business School (UK).
Barclays Life Zambia by delivering School. She continues to demonstrate
an innovative Short to Medium leadership in her current role as We look forward to seeing more
Term Strategy Plan which grew the Head of Business Development for Zambian pioneers taking centre
bank’s standalone sales after the Barclays Life Zambia Limited. She stage on the international scene.
revenue from Credit Life came under is currently prioritizing the strategic
pressure due to reduced lending. themes of Operational Excellence,

13 | Zambian Insurance Journal

Good stewardship
for sustainable growth

By Collins Hamusonde

The story of Joseph in the Old fruitful, making productive use resources available to produce and
Testament of the Bible has of their resources, must multiply grow must never be completely
intrigued me from my early what they have when their be worn out. The Brundtland
childhood and I grew up being efforts produce results, and must commission described sustainable
taught that Joseph was an honest replenish or add lasting value when development as follows:
man with good values. In my later they shape the company and make
years I came to learn that some it stronger. This is the key to the “Sustainable development is
of the most important values sustainable development of any development that meets the
are service, excellence, integrity corporation. needs of the present without
and stewardship. However, I was compromising the ability of future
always puzzled by the fact that These three key words, fruitful, generations to meet their own
such a virtuous young man was multiply and replenish, describe needs.’’ Only a good steward will
misunderstood and disliked and what employees and corporate take care of what and how they do
ultimately went through much entities in the business world need things today in order to positively
hardship. I hope you will indulge to do if we are to make progress. impact future generations.
my reference to this story for the We must multiply the resources
purpose of making a point about given to us by shareholders, There are few more inspiring
sustainable growth. we must grow the business we rags to riches stories than that of
must be ambitious and finally Joseph, as cited earlier. This young
The business world has over the we must replenish, generating man was sold into slavery and
years adopted an understanding more resources for growth and within a few years of his forced
that with good stewardship, staff investment. The shareholder must labour he rose to be in charge of
will impact on company processes, get his return on investment, the his master’s household; Potiphar
departments and teams and leave employee must get his pay equal to did not bother getting involved in
them even better than they found his work, the business must get its daily management except what he
them. Every employee must be returned earning and reinvest. The it came to deciding what he would

15 | Zambian Insurance Journal

eat and drink. Imagine having a boss do the bare minimum we must
who doesn’t care what is going on assume the entire operation is ours
in his business not because he is a and invest as much time and effort
bad manager but because he trusts into the growth strategy as though
that you as his employee are such a we owned the business. The little
good steward that you will do what slave boy rose from being a slave
he would do in any given situation. to being CEO of the household and
He places so much trust in you that later on the governor of a nation!
it doesn’t bother him that you are That is no small achievement. It
managing his most valuable assets! is our personal duty to assume
You need to be an exceptional ownership of functions and take full
employee to get your boss to that responsibility if we are to grow both
level and yet that really is the basic as individuals and an insurance.
required standard for every person
in employment. The question that It doesn’t matter what level you are at
always comes to my mind is what where you are working you could be
sort of a man was this that could a sales agent, data entry clerk, Chief
rise through the ranks from being Operating Officer or even CEO,
a slave to controlling a man’s wealth the level of stewardship required
and investments in such a manner towards our work is the same. For
that his boss was happy to leave all the data entry clerk nothing stops
matters in Joseph’s hands. There is you from being the CEO one day,
no greater example of stewardship it’s all about how you do your work
then this. and rise from being that low grade
processor to being the person in
As people working in the financial charge. If Joseph did it why can’t
services industry and to be more you? And you are not even a slave!
specific the insurance industry
we have a duty not only to the As human beings we must be driven
organizations we work but to by values. Values define who we are
ourselves as well. A good steward is and the most important value when
one who takes full responsibility of working in employment is good
shareholders investments and works stewardship.
hard enough to grow the investment.
We must not be comfortable to just

16 | Zambian Insurance Journal

 IAZ 2017 INSURANCE CONFERENCE
Bouncing back from hard times
18th - 20th June 2017 | Avani Resort - Livingstone Zambia

Supported by

The Insurers Association of Zambia will be holding the 3rd

Annual Insurance Conference at the Avani Resort in Livingstone
under the theme “Bouncing Back From Hard Times”. The
conference is the premier networking opportunity for the
Insurance market players in Zambia, with participants drawn
from across the African Continent and beyond. It is imperative
that businesses and professionals position themselves to take
advantage of various opportunities that come out of tough
economic environments. The sessions lined up are interesting
and aimed at inciting positive action from participants as they
push for recovery after a tough 2016.

The conference which is supported by the Pensions and

Insurance Authority, the Financial Sector Deepening Zambia,
the Insurance Institute of Zambia and the Insurance Brokers
Association of Zambia, is expected to attract over 150 delegates
from Zambia and across the African Continent.

17 | Zambian Insurance Journal

 KEY THEMES 4. Microinsurance – Creating
a win-win strategy
1. Global Perspectives For any business relationship to thrive, it must be a win–
win relationship, with all the parties benefitting from it:
Global trade in 2016 stagnated with, subdued The rapid growth of Microinsurance can be attributed
investment and an increase in policy uncertainty in most to the need for financial products that cater for the low-
economies, especially the developed markets. With income earners and allow more players, including those
BREXIT threatening the existence of a unified Europe in the informal sector, to contribute to the economy.
and the new American President’s stance on Global Microinsurance has also been recognised as having a
trade, and the Chinese Government’s response to this link to development and as such is an area of interest for
potential policy shift, the global economic performance both the public and private sector stakeholders. Despite
will be affected in 2017. The commodity prices are there being a lot of hype about Microinsurance, finding
beginning to show some improvements which is a the right value proposition for both the provider and
positive development for the African economies. This the consumer has been a challenge. This session will
session will help participants appreciate the state of the focus on exploring a win-win position for the insurer,
global economy and how that impacts on the different the aggregator and the potential client.
African economies, to help shape company strategy.
WHO MUST ATTEND?
Chief Executive Officers, Chief Operating Officer, Senior
2.Analysis Underwritters, Group managing Directors, Chief Financial
Officers, Brokers, Sales & Marketing Manager, Business
The use of big data analytics cannot be over emphasized Development Manager, Insurance Officers, Insurance Branch
& Regional Manager, Strategic Business Units heads, Insurance
in the quest to improve uptake of insurance products. Regulators, Distribution Channel agents.
Lincoln is quoted as saying, if he had four hours to cut
down a tree he would spend three hours sharpening
the axe. Analysing market data makes it possible to
fine tune product design, processes and final service
delivery, to sharpen the axe so to speak, and achieve
more with less effort. The challenges in data collection,
and interpretation for practical use can be daunting.This
session will address these challenges and demystify the
process, and provide alternative perspectives on big
data analysis.

3. Customer Centricity

The old adage “A customer is King” has never been truer

than in today’s business environment! In the Insurance
Industry one key area that is critical to success is service
quality which is centred on the customer. It is therefore
important for Insurance Industry players to recognise
and consider the needs of customers at every stage of
their business processes. Customer centricity enhances
the overall customer experience and promotes customer
loyalty as a way to drive profitability. This session will
look at how to create systems within organisations
that will focus on measuring and improving customer
satisfaction and loyalty as well as the different ways
of ensuring that the customer needs are built into
all activities of the organisation in order to achieve
improved business results

18 | Zambian Insurance Journal

 Press Release

CISI ACCREDITED TRAINING

PARTNER (ATP) STATUS
The Zambia College of Pensions and Insurance Trust (ZCPIT) is proud to announce that it has become
the first training institution in Zambia to be granted Accredited Training Partner (ATP) Status by the
Chartered Institute for Securities and Investments (CISI). CISI is the leading UK professional body
awarding qualifications for securities, investment, wealth and financial planning professionals.

Through this Partnership, ZCPIT is poised to bring to Zambia global qualifications in securities and
investments that are of particular relevance to individuals working in either financial services sector
or with financial services clients. The partnership between ZCPIT and CISI has the support of the
Securities and Exchange Commission (SEC) in Zambia.

Mr Julu Simuule, Executive Director for ZCPIT, had the following to say about the partnership: “It
is an exciting moment for us to have successfully signed the partnership agreement with CISI. It
is indeed the dawn of the new era for the capital markets in Zambia. ZCPIT has been associated
with the training of professionals for capital markets in Zambia for over ten (10) years through the
Investment Advisors and Stockbrokers Course – conducted in collaboration with the Securities and
Exchange Commission (SEC) and the Lusaka Stock Exchange Limited (LuSE). It is our sincere hope
that as we bring to our doorstep the new global qualification in investments and securities, we shall
continue make a positive contribution to the growth of the capital markets in Zambia.”
Kevin Moore Chartered MCSI, Director, Chartered Institute for Securities & Investment said: “We
are delighted to welcome ZCIPT as an Accredited Training Partner (ATP) in Zambia. This is an exciting
and valuable collaboration to provide training for CISI’s internationally recognised qualifications on
the ground, in Zambia. The CISI has a range of qualifications that enhance employability for those
aspiring to enter the financial sector, as well as develop the knowledge and skills of professionals
throughout their careers.”

Training for the International Introduction to Securities and Investments (IISI) Award is scheduled to
commence on 5 June 2017 at ZCPIT in Lusaka.

For further information contact:

Billy Kaombe

Manager – Consultancy Services

ZCPIT; P.O. Box 30353
Lusaka

Mobile: +260 955 160 532/+260 978 61 6970

Email: [email protected]; 28 APRIL 2017
20 | Zambian Insurance Journal
21 | Zambian Insurance Journal
 INVESTING IN
TOMORROW’S
By Claudia Hamukale LEADERS
The youth are our future leaders. I information about insurance, as for the youth and make ourselves
remember my school days when we compared to services like Banking known to them through career
practiced our marching ensuring due to the Junior Achievement clubs talks and sponsorships. Let us
that the movements of the hands in senior secondary schools. But I bet groom and harness the ideas that
and the legs were in unison. It was if we expose the youths to insurance are undiscovered by these young
such a joy to represent the school, from an early stage this would creative minds.
and it could be seen from the way make a generation that believes and
we would perfect our singing to supports insurance and does not just Let us inspire the next generation to
intimidate the other schools. It did take it up as a result of a contractual do even bigger and better things in
make a mark that has lasted I must or state obligation. A youth insured the insurance industry and it starts
say. future is what we need to guarantee with us today!
that not only motor insurance but
I always imagined that in preparation all other types of insurance will be
for youth day, companies should taken up adequately. By the time
prepare to seize the moment and these young people are in positions
reach out to a younger generation to make insurance decisions on
through the event. This actually behalf of a company they would
should be an opportunity for have the full knowledge of the type
insurance companies and others to of policies they need to buy.
market themselves by sponsoring
the schools that march on youth day We know our nation needs
or facilitate an activity in honour of insurance, let’s take pride and help
youth day. the younger generations understand
what insurance is all about. Let’s
I have realized that over the years do more for the youth and our
that I was not exposed to much communities. Let’s take a stand

22 |Zambian Insurance Journal

Personality Spotlight
Mr Paul Nkhoma
IAZ President & Hollard CEO

Tell us about your life’s economics minor. Professional Insurance I was

promoted to the position of
journey so far?
In 1995 I joined Professional General Manager and a few years
Insurance as a graduate trainee later in 2010, I left to pursue an
I was born in Luanshya and
and worked there for 15 years exciting greenfield operation with
went to primary school at
where I worked in all departments Hollard Insurance. Myself and
Woodlands A Primary School.
relating to insurance. A few years a team of three other colleagues
I did a year secondary school at
into my job, I applied and was started a new insurance company
Libala Secondary, before moving
selected for a British Council from scratch and within a short
to Kenya, where I finished my
Scholarship and was further period of 5 years built this
secondary school at Braeburn
awarded with the Anglo American company to be one of the top five
High School. My family moved
Award. I went to study for a year insurance companies in Zambia.
back to Zambia in 1990 and I then
at the University of East Anglia,
went to The University of Zambia,
in the United Kingdom. I came What are the challenges the
where I completed my bachelor of
back with a Masters Degree in insurance industry is facing?
arts (BA) degree in 1994, majoring
Development Economics.
in development studies with an
Within 10 years of working at Like any other industry there are

24 |Zambian Insurance Journal

challenges. One of the biggest replicated without us reinventing see lots of potential in the industry
challenge the industry has is the the wheel. in the next 5 years. Our industry’s
issue of premium collection. penetration levels are below 2%
Our industry is one of, if not the What advice would you give to and with a growing economy
only industry where currently someone who wants to follow where there are more and more
insurance is provided on credit Insurance players in our market,
and the industry debtors position
your career path? I see this competition bringing
stands at somewhere around 50%. about more innovation in products
I would say no one person’s path
This is part of the reason we have and distribution which in turn
can be exactly followed to the
complaints from the public about will lead to increased penetration
letter. What is important is to
insurance companies not paying levels. We are in an exciting phase
pick the qualities of a person that
claims. The liquidity of insurance which may also see some mergers
makes them tick. My suggestion
companies is affected and in turn and acquisitions coming about
to people that want to follow my
affects their claims paying ability. because of the increase in the
career path is that they first need to
The solution to resolving this minimum capital requirements
set a long term goal of where they
matter lies in working together for insurance market players. In a
want to be. Thereafter they need
as industry players, from our nutshell the next 5 years will see
to set small targets/milestones that
regulators all through to insurance the insurance industry become a
should then lead them to achieving
companies, brokers and agents. bigger contributor to our economy.
their long term goal. In between
My view is that cash and carry (no
a lot of hard work, discipline and
premium no insurance) law or What do you do in your free
perseverance is needed. That
regulation needs to be effected. time?
said, the insurance industry is a
This will not only improve
growing industry and has seen an
liquidity in our market and I spend time with family, catch up
increasing number of insurance
improve claim payments, but also on reading and also I love sport.
companies in the market but at the
provide an additional business I watch a lot of different sports
same time the insurance human
channel for banks in respect of disciplines and enjoy playing
resource pool has not grown at the
insurance premium financing, squash, football and golf.
same rate, so there is opportunity
for clients that cannot pay the full
for anyone that is serious.
premium at inception of their
policy. This concept is there in
many other markets and can be Where do you see the industry
in 5 years?

25 |Zambian Insurance Journal

 By Webster Twaambo

Insurers should adapt to the

Changing Dynamics
By Webster Twaambo, Jr. FCII, FIIZA, MBA, MSc SP

Dynamics in the insurance who will continue to apply old to exclusivity of insurance
industry have significantly tactics risk going out of business. knowledge, it is all in the
changed over the years. The way Today’s busy customer will not airwaves. It is unlike the days of
things were done 10 to 15 years accept unnecessary delays in old where insurance seemed to
ago is different from the current issuing their policy document, be a secret society where only
environment. nor is he willing to entertain members of the industry had the
unsubstantiated reasons for knowhow which was only shared
The industry has transitioned delaying to pay a claim. amongst themselves.
from a monopolistic market set The red tape that was applied
up of about 24 years ago to free The knowledgeable consumer in the past can no longer hold
market with few competitors of of today knows better what today. For a decision to be made,
about 10 years ago. Today it’s not insurance is and also his a file had to pass through several
just competition that is stiff with rights. If he doesn’t understand hands with each person enjoying
more insurers than commercial anything he will simply go on the holding on to a bunch of files
banks, the customer is more internet and be able to find that in his tray and felt he could not
knowledgeable than yesteryears information which the insurer be pushed to make a decision
let alone the improved regulation. may not even be aware of. although this was at the expense
of customer service.
It therefore means those insurers Insurers are no longer privileged

26 |Zambian Insurance Journal

Such a mind-set is irrelevant in the case may be. or TV or even radio. This calls
today’s changing dynamics. Work for insurers to invent mobile
is not measured by how many files Such a customer who is meant applications which will reach
you have on your desk, in fact to wait for such unnecessarily customers on their phones.
keeping files on your desk may be longer periods may resort to many Banks have already gone ahead of
construed as a sign of inefficiency. recourses within their rights. insurers in this respect.
They may demand for loss of use,
Most work is on the computer and something which could have been This will also transform the
cell phones. This is why all those unmentionable a few years ago! operating time from eight to 24
who are not computer literate, if hour service providers.
any, will find it tough in today’s The customer can also seek the
market. Smart phones mean we regulator’s intervention. In today’s The role of intermediaries is also
can access emails 24 hours every consumer-centric environment the a development that insurers need
day. Pensions and Insurance Authority to live up to. More than 30 percent
and the Competition and of the Gross Written Premium
The days of secretaries are slowly Consumer Protection Commission (GWP) is brokered.
getting behind us. All those in are at hand to handle insurers who
management are expected to type unfairly treat customers. This means the broker also has
their letters, use emails etc. with The advance in technology such as power in the bargain process. It
the exception of a few positions the use of the internet and mobile means clients who might otherwise
maybe. phones means insurers have be dancing to the insurers tune
to respond by devising ways of due to insufficient knowledge on
In claims settlement today, reaching customers where they are insurance can be well represented
customers want their claims to be found and opposed to customers by a well conversant broker and
paid at the same speed as premium looking for insurers. the contest is now between the two
is collected as opposed to insurers knowledgeable parties.
collecting premium at the speed of It is commendable that most
lightning but paying claims at the insurers have mobile offices which All these advent developments
speed of a chameleon. A customer serves customers closer but this calls for insurers to adapt and
of today will not watch an insurer is not enough. Let us consider the find bespoke solutions to the ever
take a month, or more to pay a mobile phone. changing market and consumer
simple motor claim which should dynamics.
be paid within a fortnight if not People spend more time on their
days or better still on the spot as phones than on their computers

27| |Zambian
27 ZambianInsurance
InsuranceJournal
Journal
 SCREENING

FRAUD

By Kutemba Chinyemba

Mr Cheswa, walked through the offender, a Toyota Hiace minibus In return, she would get a token
front doors of the XYZ Insurance driver had insurance. The driver of appreciation of 25% from the
Company on a slow Monday at confirmed that he did and showed same amount. The Family obliges.
17:30 - past working hours. He him his insurance certificate. After all, they may never be able to
didn’t even bother to speak to the Mumba is satisfied. Unfortunately, travel to the Insurance Company
secretary. He went straight to the his own insurance expired a month in Lusaka to claim for themselves.
Managing Director’s office. His ago…he realised there would be a The insurance company paid
crispy charcoal grey suit, platinum problem during the claims process out. The case was closed. Mrs X
collectible watch and subtle even if he was not the one at fault. then looked around for the next
perfume spoke of wealth. He was He told the driver to meet him funeral hoping it would be a death
there to move his fleet of trucks at the police station. Meanwhile, claim or maybe an injury claim
from another insurer to XYZ. he called his friend who called an involving a motor vehicle with
After he had gone, Management accomplice to back date cover. The valid insurance.
of the company celebrated, they claim goes through. His car was Thandiwe was not smiling because
did not even bother to check the repaired. her vehicle was hit from behind.
claims history. They had won the She had been moving with a
business and beat their premium In another location – Chirundu broken tail light for the past three
target for the quarter. Two days to be precise, a tragic accident months, but she had no intention
later, a claim is brought in - almost occurred; a cyclist was hit and died of revealing that fact. When giving
ten times the premium. The claim on the spot. A claim was submitted her statement at the police, she
is processed and an administrator shows up to asserted that even the taillight was
see the insurer. The administrator, damaged in the same incident. A
It was about 16:30 along Great a Mrs X, had no connection with quotation was done for both the
East Road. Martin was stuck the deceased yet purported to bumper and the tail light, raising
in traffic, anxious to get home. represent the family. She was the cost of the claim, and the
Suddenly someone hit his vehicle able to convince the family, who insurer pays. No one noticed that
from behind. He stepped out of are unfortunately illiterate, to only the bumper was damaged by
his BMW 7 series, asked if the accept an offer of K16, 000.00. the impact.

28 |Zambian Insurance Journal

 ways The insurance industry is there and then in the case of a
These and many other stories are exploring to curb fraud. motor accident. Thankfully, the
reality in the Zambian insurance compulsory display of insurance
sector. Millions of kwacha 1. Claims Bureau discs will minimize the possibility
are lost through fraudulent of backdating cover notes as
claims and flimsy underwriting The sector needs a well- stipulated under the new Statutory
considerations. coordinated Claims Bureau or Instrument Number 33 of 2015
database where all claims should -The Road Traffic (Certificates of
In the UK alone, the underwriting be monitored. Any suspicious Security and Insurance Display)
and claims bureau has curbed individual or firm should be Regulations, 2015.
more than a Million Pounds of probed. Even before paying out
what would have been fraudulent a claim, the claim should be 5. Underwriting
claims. South Africa grapples with thoroughly screened at the Bureau. considerations
the highest cases of sophisticated
manoeuvres in claims. 2. Premium payment There should always be a claims
awareness history check on an individual or
Zambia is not spared. Due to the corporate client. It is important
nature of the products and services There has been reported cases of to find out why a customer has
provided by the insurance sector agents writing different premiums switched from a previous insurer.
and the increasing growth and on original cover notes while Also there is need for constant staff
sophistication of the insurance putting a lower amount on training and orientation in new
providers, insurance products are copies submitted to the insurer trends perpetrators are using. The
attractive to money launderers hence pocketing the difference. scrutiny should go beyond mere
and terrorist financiers. Therefore, Commonly known as premium gut feelings.
in order to protect the industry diversion, this is largely due to
from criminal activities associated ignorance of the public on how 6. Stiffer penalties for
with Money laundering and much a particular motor insurance perpetrators
Terrorist Funding in Zambia, the costs. This mostly happens at
insurance sector is subjected to the border points to unsuspecting There is need for stiffer penalties
present Anti-Money Laundering foreigners entering the country. for perpetrators and potential
and Countering the Financing of This can be curbed by issuance offenders to deter them from
Terrorism (AML/CFT) regime. of cover notes electronically and venturing in to the vice. Normally,
Unfortunately, most insurance display of pricing in these sales an insurer would repudiate a claim
players have not started fully points. Also, the public should but not involve the police.
implementing the requirements as demand for a receipt for any
enshrined. transaction. 7. Protection for whistle
blowers
As much as there are questionable 3. Proper verification of
claims in other lines of insurance,
documents. There is need for those that expose
motor insurance is the biggest
criminal acts to be protected.
channel for fraudulent claims
Verification should go over There should be an insurance toll
in Zambia. Insurers often
and above the cover note and a free line which would work in
seek another player to verify
particular insurance firm’s logo. conjunction with the Financial
the authenticity of a cover
The insurance personnel need to Intelligence Centre, Anti-Fraud
note without supporting
attach a particular cover note and Cracking Squad and the Police.
documentation. In some cases, this
look for subtle alterations and
never happens due to the lag by
suspicious premiums, period of 8. Blacklisting
the other insurer to authenticate.
insurance and name changes.
As the industry grows, so does the
sophistication of fraudsters. There A perpetrator of fraud should
4. Police Co-operation. be blacklisted and put under
is need for deliberate policies by
all stakeholders involved to ensure surveillance so that even if they
The police should never be switch insurers, they are still
that the industry is watertight on
coerced in issuing a police report known and dealt with accordingly.
claims.
without first going to the scene This will work best if there is an
of an accident. Police should active industry claims bureau.
The following are some of the
demand for evidence of insurance

29 |Zambian Insurance Journal

 Seeing Value by Chitundu Mutwale

The The Customer Way

GET THE CUSTOMER RIGHT, they would offload during their centered to a customer-targeted
WILL YOU? sales presentations without activity. As the move towards
understanding the needs of the a global economy quickens, so
In today’s business environment, customers. customers demand quality in
consumers want value no matter terms of their relationships with
how it is delivered. Unless In Zambia, evidence suggests that sellers, with increased emphasis
you understand value from delivery of products and services being placed on reliability,
their perspective, you will not (insurance inclusive) by most durability, ease of use and after-
adequately address the customers’ organizations has generally long sales service. This leads to the
needs. Hence, you can only been done in a sales orientated modern notion of customer
deliver value by delivering what style where focus is on selling care; a philosophy which ensures
is valuable and what is valuable is the products and services rather that products or services and
that which provides solutions to than meeting the needs of the the after-care associated with
the customer’s problems. customers. This explains why most serving customers’ needs at least
customers are dissatisfied and meets, and in most cases exceeds,
IT ALL STARTS AND ENDS have a negative attitude towards expectations. Today’s customers
WITH A CUSTOMER! not only the product offers but have more choice than ever before
the organizations as well. It also and demand high levels of service
Research on Consumer confirms why selling products like and care. In this regard, it goes
behavior has revealed that a insurance is so difficult for most without saying that customer
modern customer is much more salespeople. To turn things round, loyalty can no longer be relied
informed and has far more value there is need for a paradigm shift. upon because there is greater
expectations than the customer Organizations must first seek to product and service choice.
of yester years. This development understand the customer’s needs Customers will either switch to
precipitated by technological and then produce products and other service providers or simply
advancement and information services that will meet those needs. reject the offer if it does not meet
flow, has significant ramifications In short, companies must make their value expectations.
on the way companies have to what they can sell, not selling what
operate in the delivery of products they can make. This is the core of Therefore, only companies that
and services. Gone should be the innovative service delivery. give priority to understanding
days when sales and marketing their customers’ needs and
people confronted customers Customer-focused quality is respond with the right offers are
with product knowledge and now essential because it involves likely to make a breakthrough in
rehearsed sales pitches which a change from an operations- today’s competitive world.

30 | Zambian Insurance Journal

 Maze

Word Search
a r j s g y p k l d n j n e p
e t e e r e t i s o h b w t r
d t u t r o a i i i u g o a o
r y a i r b t s u r r n d c t
e r l m i o n c g n o l k i e
r a e l i e s l a i n s a f c
i u i x t x a p t r f a e i t
f t c x c r o a e r t z r t i
y c e t y e l r n c p n b r o
m a u w z s s b p e t o o e n
o n n o i t a s n e p m o c r
t y s g u n d e r w r i t e r
o q e y t i n m e d n i s r f
r l r e i n s u r e r v r p g
b r o k e r t n e g a r e v a

actuary broker excess liability reinsurer

agent burglary extension motor retrospect
annuity certificate fire peril risk
average compensation indemnity protection underwriter
breakdown contractors legislation proximate

31 | Zambian Insurance Journal

 Photo
Focus

The CEO Breakfast took place on 28th February

2017 and was sponsored by Zep-Re. Guest of
honour was Minister of Finance Hon. Felix Mutati

Junior Essay Winners: 1st prize winner Rachel

Volk, 2nd prize winner Diana Rose, In 3rd place
Natalia Lweendo Bukoka

Senior Essay Winners: 1st place went to Joseph

Allan Sakala 2ndJoseph K Simbeye 3rd place
winner was Sharon Chanda
 Police Day celebrations took place on 6th
March 2017. Insurers were represented by IAZ
Secretariat, Meanwood General, ZSIC Life,
Sanlam, Prudential and Liberty. Minister of Home
Affairs Hon. Steven Kampyongo toured the
stands.

The CEO cocktail took place on 27th April 2017

and was sponsored by MLife
DIRECTORY
A
A Plus General Aaron Kamanga Parirenyatwa Road,
0211-239865
Insurance Ltd [email protected] Rhodes Park, Lusaka

A Plus Life Assurance Frank Nguni 1st Floor Exchange 0211-234868/9

Company Ltd [email protected] Building, Farmers House, 0211-234866
Central Park, Lusaka

Acacia Insurance David Kandongo Plot No. 35991, Thabo 0977-711807

Company [email protected] Mbeki Road, Lusaka

Advantage Raymond Chella 8 Enock Kavu Road, off 0211-258876

Insurance Ltd [email protected] Addis Ababa Drive, Lusaka 0971-745363

Africa Pride Insurance Temba Chibare Unit 2, Plot No. 35991A, 0211-253086
Company Ltd [email protected] Thabo Mbeki Road, Lusaka /348/013

African Grey Benny Sakala No.31 Omelo Mumba Road 0211-221092

Insurance Ltd [email protected]

B
2nd Floor, Kafue House,
Barclays Life Mugove Nyimo 0211-366246
Nairobi Place, Cairo
Zambia Ltd [email protected] /366100
Road, Lusaka

D
Diamond General Edna Kalenga Diamond Park, Alick 0211-253740
Insurance Ltd [email protected] Nkhata Road, Lusaka

F
Focus General Barbara Mwandila 2nd Floor, Pangaea Office 0211-291311-4
Insurance Ltd [email protected] Park, Great East Road, Lusaka 259977/8

Focus Life Isaac Gunda 2nd Floor, Pangaea Office 0211-291311-4

Assurance Ltd [email protected] Park, Great East Road, Lusaka 259977/8
G
GBG Insurance Mike Mwemba
0973-983987
Zambia Ltd [email protected]

General Alliance Charles Madziba Garden Plaza Office Park, 0211-221714/5

Insurance Zambia Ltd [email protected] Thabo Mbeki Road, Lusaka

Golden Lotus Jaqueline Katoto 7911, off Central Street, 0979-114918

Insurance Ltd [email protected] Chudleigh, Lusaka 0211-214002

Goldman Insurance Ltd Muppala N Raju 0211-220316

[email protected] 235234/5

Guardian Reinsurance Thelma Chegwenda 17 Paseli Road,

0211-258884
Brokers Limited [email protected] Northmead, Lusaka

Hollard Life Monica Kalifungwa Ground Floor, Pangaea

0211-258632/3
Assurance Ltd [email protected] Office Park, Great East
Road, Lusaka

Hollard Insurance Paul Nkhoma Ground Floor, Pangaea 0211-255681

Zambia Ltd [email protected] Office Park, Great East
Road, Lusaka

I
Innovate General Jack Kamau 2nd Floor, Kwacha 966744272
Insurance Ltd [email protected] Pension House, Lusaka

K
Kenya Reinsurance Selemani Tembo DG Office Park, Chila Road, 977197776
Corporation Ltd [email protected] Kabulonga, Lusaka

L
Liberty Life Mark A. Gobie 1st Floor, Kwacha 0211-255536
Insurance (z) Limited [email protected] Pension House, Stand 0963-216045
4604, Tito Road, Lusaka

M
Madison General Chabala Lumbwe Madison House, 0211-378700-5
Insurance Ltd [email protected] Plot 318 Independence
Avenue, P.O. Box

36 | Zambian Insurance Journal

 Madison Life Agnes Chakonta Dar-Es-Salaam Place, 0211-233112/3
Insurance Ltd [email protected] Cairo Road, Lusakaa 233940/1

Mayfair Insurance Hashit Patel Lubuto House, Ploy

1278 Lubuto Road, 0211-255182
Company Zambia Ltd [email protected]
Rhodes Park, Lusaka

Meanwood General Tobias Milambo Plot 106 Fariview,

[email protected]
0211-221868
Insurance Ltd Great East Road, Lusaka

Metropolitan Lovemore Gomera 5th Floor, Mukuba Pension [email protected]

Life Zambia Ltd [email protected] House, Dedan Kimathi
Road, Lusaka

N
NICO Insurance Geoffrey Chirwa 1131 Corner
Zambia Ltd [email protected] Parirenyatwa & Protea 0211-258884
Roads, Fairview, Lusaka

P
Phoenix of Zambia Assur- Trevor Jengajenga Plot 251/441A,Zambezi 0211-233956
ance Company (2009) Ltd [email protected] Road, Roma

Exhildh Lumbwe Plot 187c Namambozi 0211-221158

Prima Reinsurance Plc [email protected] Road, Fairview Lusaka

Professional Insurance Moses Siame 194 Finsbury Park, Kabwe

Round About, Great 966744272
Corporation Zambia Ltd [email protected]
North Road, Lusaka

Prudential Life Rajagopal Krishnaswamy Prudential House, Plot No.

32256, Thabo Mbeki Rd, Lusaka 0211-366704
Assurance Zambia [email protected]

R
Plot No. 2341 0211-235046
Regent Life Limited Juliet Sampa Mambilima House, 0211-234962
[email protected] Kabelenga Road, Lusaka 0211-234946

S
Sanlam Life Simachila Makwembo Corner of Ituna/Nasser 0211-257713
Insurance Zambia [email protected] Roads, Lusaka

Savenda General Irene Muyenga Corporate Park, Alick 0211-269515

Insurance Zambia Ltd [email protected] Nkhata Road, Lusaka

37 | Zambian Insurance Journal

U
NAPSA Staff Pension House,
Ultimate Insurance Maybin Silavwe Plot No. 40 Bwinjimfumu 0211-267841
Company Ltd [email protected] Road, Rhodespark, Lusaka 0211-267842

V
Veritas General Geoffrey Mkandawire Plot BRT6/60, Kabulonga 0211-266307
Insurance Ltd [email protected] Road, Lusaka

Z
Plot 110a/24 Polonalio
Zambian Reinsurance Webster Chigwende
Miti Road, Villa Elizabetha 0211-232820
Company Limited [email protected] , Lusaka

Zambezi Reinsurance Nyambe Libakeng’i

Limited [email protected] 17 Ngwerere Road, Lusaka 977856748

Shipango Muteto Base Park, Alick Nkhata

Zep Reinsurance 0211-252530
[email protected] Road, Lusaka

ZSIC General Charles Nakhoze Premium House, 0211-229343

Insurance Ltd [email protected] Stand No. 7431, Lusaka

Peter Lukwesa Stand No. 4432, 0211-222412/3

ZSIC Life Ltd [email protected] Cairo Road, Lusaka