Set up booths at markets, insurance firms told

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.