We Are Officially in Zambia
Zambia, in southern Africa, is a landlocked country abundant with natural resources, including minerals, wildlife, forestry, freshwater, and arable land. On its border with Zimbabwe is famed Victoria Falls – indigenously called Mosi-oa-Tunya, or “Smoke That Thunders” – plunging a misty 108m into narrow Batoka Gorge.
The Zambian insurance industry is a growing market with increasing gross written premiums (GWP), but it faces challenges such as low penetration rates and a lack of public understanding about insurance. The industry is regulated by the Pensions and Insurance Authority (PIA) and includes both life (long term) and general (short term) insurers. Key trends show potential for growth through innovation, increased financial literacy, and developing new products like microinsurance, while some emerging legislation has raised concerns about foreign investment. According to the PIA, globally “the major challenges faced by insurers in 2024 included navigating regulatory changes, rising cybersecurity threats, and the increasing impact of climate change.”
Key market statistics and trends
• Growth:
GWP is on an upward trend, reaching K9.6 billion in 2024, translated into a growth rate of 25% in Zambian Kwacha (ZMW) terms, however in United States Dollars (USD) the market contracted due to depreciation of the Zambian currency.
• Number of insurers:
As of July 2025, there were 9 long-term (life) insurers and 24 general insurers, totaling 33 licensed entities.
• Profitability:
The market is generally seen as underperforming, with low insurance penetration rates of 1.39% in 2024 compared to the African average of 3.5%.
• Market structure:
General insurance accounts for a larger share of the market than life insurance, with life insurance contributing only 32% of total business in 2024.
• Assets:
The industry’s assets saw a significant 28.3% growth in the first quarter of 2025.
Challenges
• Low penetration:
The low penetration rate is attributed to factors such as low insurance culture, lack of public understanding, and a focus on basic needs over insurance.
• Limited innovation:
Insurers have been slow to innovate, failing to develop products that could appeal to a broader market base.
• Trust issues:
Some consumers do not trust financial service providers, which contributes to low uptake.
• Foreign ownership concerns:
Emerging legislation limiting foreign ownership in insurers and insurance brokerage firms has sparked concerns about its potential impact on attracting investment.
Opportunities and outlook
• Financial literacy:
Efforts to increase financial literacy, including workshops, are underway to improve understanding of insurance products.
• Innovation:
There is significant opportunity for innovation in product design and delivery to broaden the customer base.
• Microinsurance:
The sector is exploring the potential of microinsurance to reach the low-income population.
• ESG and climate:
The industry is exploring sustainable finance and products that address climate risks, helping to safeguard Zambia’s biodiversity while building financial resilience.
• Investment
• Recent asset growth suggests a positive outlook for the sector’s financial stability and potential for future growth.
SBN with its wealth of international insurance network, over 75 years of combined insurance industry knowledge, in addition to its 10 years as a professional training organization, is well poised to equip and enhance industry personnel with the knowledge they need to help serve the insuring public in Zambia.
