PIA goes online to boost efficiency

By BUUMBA CHIMBULU THE Pensions and Insurance Authority (PIA) has acquired a new online system meant to enhance financial stability of the industry.

PIA communications manager, Doreen Silungwe, explained that the electronic regulatory system was a web based scheme that enabled regulated insurance entities log into the system using a portal offsite.

“This portal is an on-line application that manages formal communication between the PIA and the regulated entities. Using this system, the regulated entities will complete and submit all required returns online,

“In addition, the entities will access information held by the regulator about their entities and keep themselves up to date. The system will reduce time taken to prepare data outputs and analysis which has been a major challenge to the Authority,” she said.

Ms. Silungwe said the system would help to improve data depth, consistency, quality and accessibility.

She explained that it would also enable the PIA achieve a dynamic model of supervision that is in line with international standards.

“The dynamic model also known as Risk-Based Supervision will improve efficiency and effectiveness in regulation enhancing financial stability of the industry,” Ms. Silungwe said.

Meanwhile, Ms. Silungwe said PIA in 2017allowed the acquisition of three entities.

Ms. Silungwe explained that these acquisitions were made by new shareholders and not by already licensed insurers acquiring another competing company. Acquiring shareholders have been either entities in other economic sectors or foreign owned insurance holding companies.

“The effect of this is that the number of licensed insurers as at 31st December 2017 remained the same as before the implementation the new capital requirements. It is hoped that the few acquired insurers will now be stronger and offer a better service,” Ms. Silungwe said.