Set up booths at mar­kets, in­sur­ance firms told

Daily Nation Newspaper - - NORTH WESTERN NEWS DAILY NATION -

By MAILESI BANDA IN­SUR­ANCE com­pa­nies have been chal­lenged to set up booths and sell­ing points in mar­kets and trad­ing places to at­tract more mi­cro in­sur­ance cus­tomers.

Las­ton Zimba, a trader at Lusaka City Mar­ket ad­vised com­pa­nies to fol­low the traders to their trad­ing places to in­crease the num­ber of peo­ple that bought in­sur­ance prod­ucts.

Speak­ing in an in­ter­view with the Daily Na­tion in Lusaka yes­ter­day, Mr Zimba said bring­ing sell­ing points closer to the traders would al­low more traders ac­quire in­sur­ance poli­cies for dif­fer­ent risks.

He said the less than 3 per­cent of the adult pop­u­la­tion that owned in­sur­ance prod­ucts in Zam­bia could be im­proved once the sell­ing points were brought closer to the in­tended mar­ket.

"In­sur­ance is an im­por­tant prod­uct and most peo­ple want to have ac­cess to it but most of the in­sur­ance com­pa­nies do not reach out to peo­ple by be­ing closer to the mar­ket,” Mr Zimba said.

Mr Zimba said in­sur­ance con­tin­ued to be per­ceived as be­ing for rich peo­ple be­cause the com­pa­nies did not set up ac­cess points closer to the peo­ple.

He ex­plained that mi­cro in­sur­ance was im­por­tant to busi­ness growth, adding that small and medium scale busi­nesses had risks that needed to be cov­ered but they were not con­sid­ered as an at­trac­tive mar­ket.

"This in­sur­ance week should be a point of re­flec­tion for in­sur­ance com­pa­nies and they should work to­wards at­tract­ing more pre­mi­ums and this is bet­ter done by for­mu­lat­ing prod­ucts that will suit the mi­cro in­sur­ance mar­ket and be­ing closer to the tar­geted mar­ket,” Mr Zimba said.

He noted that most in­sur­ance com­pa­nies had con­cen­trated on com­mer­cial clients, adding that if they were to im­prove their tax base there was need to at­tract SMES.

Mr. Zimba said in­sur­ance com­pa­nies were only vis­i­ble at car regis­tra­tion points, adding that while this sec­tor pro­vided them busi­ness, it was im­por­tant to in­volve SMEs in prod­uct for­mu­la­tion and bring the prod­ucts at their door steps.

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