Towards a Strategy for Microinsurance Development in Zambia: A Market and Regulatory Analysis
This paper examines the scope, regulatory framework, opportunities and challenges for microinsurance expansion in Zambia. It provides an information base to help key stakeholders formulate strategies for the development of microinsurance in Zambia.
The paper gives an overview of the Zambian economy and highlights the role of the informal sector. It analyzes financial sector trends in Zambia and reviews insurance regulations and the financial inclusion policy. It outlines the insurance market in Zambia, profiles the underserved market and identifies potential submarkets for microinsurance.
The paper suggests several strategic interventions for development of the microinsurance market in Zambia. These include:
- Developing a microinsurance policy position;
- Identifying areas for regulatory reform;
- Promoting inter-departmental cooperation;
- Aligning proposals with Financial Sector Development Plan and other strategy processes;
- Creating a platform for dialogue;
- Catalyzing research and innovation;
- Exploring demand aspects and informal risk mitigation mechanisms;
- Discussing the scope for micorinsurance in agricultural sector;
- Educating the target market.