The Pensions and Insurance Authority – PIA has disclosed the authority has for the year 2020 granted licenses to 317 Insurance entities out of which 26 are insurance companies, 17 general insurance companies and 9 are long term insurance companies.
The Authority has also licensed three (3) reinsurance companies, three (3) reinsurance brokers, 44 brokers, 222 agents and 19 other intermediaries.
According to a statement made available to the Zambian Business Times – ZBT on January 20, 2020 by PIA Communications Manager Doreen K. Silungwe, the authority has pledged it commitment to continuously monitor and scrutinize the operations of all licensed entities focusing on prudential supervision and market conduct in order to protect the interests of policyholders and beneficiaries.
Meanwhile, the pensions industry registered a positive growth in net asset value of K7.70 billion as at 30th September, 2019 from K7.60 billion as at 30th June, 2019, representing an increase of 1.3%. On a year to year basis, net assets grew by 5.5% from K7.30 billion at 30th September, 2018 to K7.70 billion at 30th September, 2019.
Equally, total investment income increased from K62 million as at 30th June, 2019 to K182 million as at 30th September, 2019 representing a 93% increase in investment income. This improvement in investment performance is mainly due to exchange gains earned during the period.
The industry also recorded a reduction in contributions from K282 million as at 30th June, 2019 to K274 million as at 30th September, 2019 representing a reduction of 3% as opposed to a 7% increase in the previous quarter.
Silungwe said refunds of contributions upon members leaving the sponsoring employers increased to K241 million as at 30th September, 2019 from K103 million as at 30th June, 2019.This represents a 31% increase in refunds during the third quarter of 2019.
“The pensions and insurance industries also faced some challenges which, included increased delays in remittance of pension contributions, rising insurance claims, poor liquidity and rising policyholder debt. The debt in premiums owed by policyholders to general insurance companies stood at K722 million as at 30th September 2019 as compared to K627 million as at 30th September 2018,” She added.
The Authority is also concerned with the growing policyholder debt as this affects the liquidity of insurance companies causing delays in settlement of claims.
This news was culled from Zambia Business Times
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