The Pensions and Insurance Authority has announced the increase in the minimum paid up capital for insurance companies and brokers in Zambia.
This is in line with statutory instrument 171 of 2015.
In a statement, PIA Registrar Michael Libinga said reinsurance companies are required to raise their minimum paid up capitals to K 20 million from the previous K 1 million.
Long term and general insurers are required to raise their paid up capital to K 12 million and K 10,000 respectively from K 1 million.
Brokers will also need to raise their paid up minimum capital from K 50,000 to K 100 million.
Mr Libinga explained that the transitional period for the entities to comply with the requirements of the Statutory Instruments shall be a period of two years from date of coming into force of the statutory instrument.
He said the move is targeted at a solid, competitive and sustainable insurance sector as it will strengthen the financial base of the sector.
Mr Libinga said capital forms the basis of financial strength for any insurance company and supports better risk management and market confidence.
This is long overdue,kindly check the laws that dues with insuarance poor workers loose money especially after death,children fail to claim this cash others are just helped by kabusha. We ve seen foregners burn over valued property then claim huge cash & then run out of zed