ZSIC-G invests in software to improve premium payments

By MAILESI BANDA

ZAMBIA State Insurance Corporation - General has invested US$1.2million in a software that will reduce the challenges of failing to collect premiums due to data reconciliation.

ZSIC General managing director Charles Nakhoze said they previously operated on a dual system that had a separate underwriting and accounting system, adding that the system was a challenge when it came to convincing customers to pay.

Speaking in an interview with the Daily Nation, he said clients denying to pay their premiums due to lack of reconciliation had become a challenge to the company.

He stated that the data industry had a challenge of premium payments from the customers.

“The insurance industry generally has a problem of premium payments, and as ZSIC we have worked around this to allow customers have flexible payment plans,” he said.

He said with hard economic conditions it was difficult for customers to pay their premiums annually due to not having excess money, adding that allowing the customers to pay when funds were available was the best way to keep the customers.

He lamented that due to the growth in the motor insurance sector, the company had spent a lot of money on claims.

“Our major problem has been the rise in claims costs because our motor insurance portfolio has grown and we would say this is our major challenge,” Mr Nakhoze said.

He stated that they were working towards reducing impairments of assets at the end of the year

Mr Nakhoze said the company was working towards attracting medium scale businesses because they could keep this scale without spending money on reinsurance.

He said to expand and grow the business they were working towards ensuring that they spend less money on reinsurance by writing medium scale businesses that did not need reinsurance.