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Consider opening branches in rural areas, insurance firm urged

IN THE wake of increased competition in the insurance industry, Copperbelt Province Minister Mwenya Musenge has implored ZSIC Limited to open up branches in rural areas.
Mr Musenge said branch expansion plays an important role in increasing access to insurance services.
“Such development will improve operation and competition while creating jobs for our people. However, there is need to complement branch expansion with innovative products that will result in increased uptake of insurance by majority people, including the ones in rural areas,” he said.
During the official opening of ZSIC Life regional office at Inengo House in Ndola on Friday, Mr Musenge urged the firm to spread its wings and tap into districts with economic potential.
Mr Musenge cited places like Chavuma, Chiengi, Chembe, Chilubi Island, Lufwanyama, Mpongwe, Kalabo, Shangombo among several other districts.
He said opening branches will improve financial inclusion and also provide with new customers thus a higher yield in terms of premium income.
Mr Musenge said a stable macro-economic environment is one of the critical ingredients for achieving sustainable economic development, job creation and poverty reduction.
“The insurance industry in Zambia with growth annual premiums of about K300 billion for life and non-life business and about K550 billion for pensions controls colossal sums of money which could be used for investment locally, and if properly regulated, development could contribute to a stronger financial sector in Zambia which could greatly contribute to the growth of gross domestic product,” he said.
Earlier, ZSIC group chairman Ernest Beele said Copperbelt Province remains key for the firm’s business portfolio as it has continued to play an important economic function at the backbone of the country’s mining industry.
The firm has drawn up measures to bring uninsured population on board by introducing micro insurance for the informal sector.
Dr Beele urged the public in the informal sector such as bricklayers, marketeers, conducters, drivers, fabricators and wielders to utilise the products and services provided by the company.