Insurance laws at Zambia
Zambia's insurance sector is governed by the Insurance Act No. 38 of 2021, which replaced the previous Insurance Act of 1997. This comprehensive legislation aims to modernize and regulate the insurance industry, ensuring its stability and protecting policyholders.
📘 Key Provisions of the Insurance Act No. 38 of 2021
1. Regulation and Supervision
-The Act provides for the regulation of insurers, reinsurers, and intermediaries It establishes the Pensions and Insurance Authority (PIA) as the primary regulatory body overseeing the industry
-Insurers and reinsurers are required to maintain a solvency margin of at least 10% A capital adequacy ratio of at least 150% must be maintained, with annual auditor-certified solvency statements submitted to the PIA -Existing entities have a three-year grace period to comply with these requirements
3. Local Ownership and Shareholding
-At least 30% of an insurer's and reinsurer's share capital must be owned by Zambian citizens or citizen-owned companie snsurance brokers must have at least 51% of their shareholding owned by Zambian citizens or citizen-owned companies Existing entities have a four-year grace period to comply
4. Corporate Governance
Insurers must have a minimum of five directors, with at least one being independent rokers are required to have at least three directors, with one being independent The Act introduces minimum corporate governance standards, which are to be issued by the PIA
5. Dispute Resolution
The Act establishes an Insurance Tribunal to address grievances and disputes within the insurance industry, aiming to improve administrative resolution before resorting to courts
6. Actuarial Oversight
-Life insurance policy premiums require approval by a qualified actuary The Act mandates actuarial appointments for all insurers, strengthening data-driven and transparent pricing approaches
7. Microinsurance
The Act provides for the regulation and supervision of microinsurance businesses, aiming to increase access to insurance for low-income populations
🏛️ Supporting Legislation
National Health Insurance Act No. 2 of 2018 Establishes a framework for universal access to quality insured healthcare services, creating the National Health Insurance Management Authority and the National Health Insurance Fun.
Insurance Levy Act No. 25 of 1990 poses a 10% levy on insurance premiums for all classes of insurance business, collected by the Zambia Revenue Authorit.
🏢 Regulatory Authority
The Pensions and Insurance Authority (PIA) is responsible for regulating and supervising the pensions and insurance industry in Zamba It formulates and reviews laws and regulations, handles complaints, and ensures compliance with the Insurance At.
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For more detailed information, you can access the full text of the Insurance Act No. 38 of 2021 through the National Assembly of Zambia's websie.
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