US$5.37m payout for the 2021/2022 agriculture season

TO protect the vulnerable communities in Zambia, Government has participated in the parametric sovereign insurance pool that has resulted in payout of US$5.37 million for the 2021/2022 agriculture season, as the eighth annual insurance conference gears on.

Government participated in the parametric sovereign insurance pool with Africa risk capacity for the past two agriculture season that resulted in payout of US$ 5.37 million for the 2021/2022 agriculture season.

This is according to the Finance and National Planning Minister, Situmbeko Musokotwane at the 2022 insurance conference in Chongwe yesterday being held under the theme “Strengthening resilience in a changing economic landscape – the case of insurance.”

Dr Musokotwane stated that Government took part in the insurance pool as it recognised the importance of protecting the vulnerable communities in Zambia especially in the rural areas.

This, he said, had enabled Government to respond to natural disaster impacts in the country’s drought prone areas and avert a potentially worsened food insecurity situation.

He said this in a speech read for him by the Ministry’s permanent Secretary for Monitoring and Evaluation, Trevor Kaunda.

“Over the last few years we have seen initiatives such as parametric insurance playing a key role in addressing the increasing impact of drought and floods on our farming community,” Dr Musokotwane said. On local insurance, he challenged entities to adapt to new ways of doing business and collectively explore how it would contribute to the economic growth of Zambia.

“It is without a doubt that your service delivery should cater for the comfort and convenience of your customers. We are in the digital and knowledge age and thus your business models must respond accordingly,” Dr Musokotwane said.

And the Pensions and Insurance Authority acting registrar Namakau Ntini pointed out that claims settlement or benefit payouts remain a major complaint, calling on insurance companies to expedite their payment processes.

Insurers Association of Zambia (IAZ) President Moses Siame indicated that a more resilient insurance industry was plus for the insuring public, local communities and the overall economy.

Mr Siame therefore stressed the need for businesses to have the capacity that weathered the storms if it was to survive and grow.

Meanwhile, IAZ Executive Director, Nkaka Mwashika said the annual conference was an important event for the industry.

And Insurance Brokers Association of Zambia (IBAZ) president Humphrey Kabwe said it was incumbent upon every service provider to uphold professional standards and best practice.