By BUSINESS REPORTER
THERE is need for experts to provide a legal framework that facilitates the development of sustainable micro-insurance products for poor households which still lack access to good-value products, Finance Minister Margaret Mwanakatwe has said.
Ms Mwanakatwe said challenges such as lack of proper policies, product development and marketing and premium collection, were still hampering the insurance sector in Zambia.
She said while the insurance industry was targeting the emerging small and medium businesses, risks faced by such people were not different from the rest.
Ms Mwanakatwe was speaking during the official opening of the 14th international micro-insurance conference in Lusaka.
She noted that while the risks faced by low income earners were more vulnerable to such risks due to their very limited resource base, hence the need to solve the challenges in access to the service.
“Notwithstanding the recent developments, the insurance industry in many countries is not achieving potential. Millions of poor households still lack access to good-value products. The regulation, policy and supervision experts need to provide a legal framework that facilitates the development of sustainable micro-insurance products.
She said Government recognised efforts of the Pensions and Insurance Authority and other stakeholders in drafting the micro-insurance regulatory framework for Zambia.
“Government has been supportive of initiatives and measures undertaken by various stakeholders to improve resilience particularly through use of appropriate insurance services.
“The national financial inclusion strategy recognizes and places emphasis on insurance as one of the critical financial services requiring traction,” she said.