Finance Minister Felix Mutati says contributions by the insurance industry to the country’s Gross Domestic Product (GDP), remains uninspiring as its contribution to the nation’s economy remains low at 1.5 percent .
Mr Mutati says this development coupled with the insurance industry’s penetration rate was below the average figure of 3 percent for Africa.
He attributed this to the insurance industry’s use of a business model that was dependent on gambling.
“You are not gamblers. The business model you are using is no sustainable as it is equivalent to witchcraft. We have to find a way of disconnecting you from gambling and witchcraft,” he said.
Mr. Mutati said this in Livingstone yesterday when he officially opened the 2017 Insurance Conference held under the theme: ‘Bouncing back from hard times’.
He also stressed the need by the insurance sector to minimize export of insurance premiums as increased exports retarded the growth of the industry and impacted negatively on the economy.
Earlier, Insurance Association of Zambia President Paul Nkhoma said it was disheartening to note that only 2.8 percent of Zambian adults had insurance.
“Further, the insurance industry continued to contribute less than 1.5 percent to the country’s Gross Domestic Product with the total industry premiums standing at only K2.6 billion in 2016,” he said.
Mr. Nkhoma said the Association was taking up Finance Minister Mr. Felix Mutati on his challenge for the sector to increase insurance penetration in Zambia by being more innovative and retaining as much business in the country as possible.
He said initiatives had been put in place to respond to the Minister’s challenge and these included, pushing for the domestication of Marine Insurance to prevent further loss of K200 billion annually in potential premiums annually and advocacy for enactment of a new Insurance Act.
Mr. Nkhoma also called on government to assist the industry resolve unfavorable taxation challenges.
He also cited pricing, challenging regulatory frameworks, climate change and lack of skilled manpower as some of the major challenges affecting the insurance industry in the Sub-Sahara region.
And Insurance Association of Zambia Executive Director Christabel Chanda said the insurance industry had achieved a lot in the area of micro insurance and had identified opportunities to reach low income groups in society.
Meanwhile, Mr. Mutati implored the insurance industry to build confidence in clients by honoring claims; enhance financial inclusion by capturing those in low bracket incomes and enforce already existing laws before calling for new legislation.
The Finance Minister challenged the sector to double its contribution to GDP by expanding the client base and product range.
Mr. Mutati reiterated that it was not in government’s interest to close down any insurance companies as it needed taxes, but it (government) would not invest in creative imagination as it required the insurance industry to be pragmatic to sustain its operations.
“You are not gamblers. The business model you are using is no sustainable as it is equivalent to witchcraft. We have to find a way of disconnecting you from gambling and witchcraft,” he said.
Please don’t serve the Guest Speaker alcohol before he stands up to speak…. Lol
Hooo so Witchcraft can work to recover Zambian economy, says the PF hired hero.
Uko! Mutation or sorry, Mutati is referring to those sagomas who have been frequenting Nkwanzi house from Malavi.
This is a confirmation from Mutati that witchcraft & gabbling reigns supreme in PF. Its now witchcraft insurance under PF banditry leadership.
The Skeleton Key
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Witchcraft belief is a curse on Africa!
Witchcraft belief is a curse on Africa!
Christianity has only added to the toxicity of such beliefs
As long as there are weak and gullible people who need an otherworldly malevolent force to blame for their own, or their society’s failures, there will be evil and cynical con-men sowing fear and violence in exchange for wealth and power. We see it in plenty of Western superstitions as well as African ones.
Accusing children of being witches is something very new in Africa and most Africans find it very shocking. It is very far from traditional African beliefs, in which children cannot have this kind of agency.
As the original article points out, a strong influence on the new habit of accusing children of being witches are new African churches that have been strongly influenced by Satan-hunting versions of Christianity. Anolther influence is the breakdown of traditional society, especially in places (like Lingala-speaking Kinshasa) where the modern state has also broken down.
Insurance,Witchcraft and Gambling…in the same category?Far from it.There is serious and vigorous need to educate the general populace the advantages of Having a robust and user friendly insurance awareness.
Gambling is when potential customers shun insurance thinking they will not face any adversity. On the other hand, witchcraft is for those who shun insurance because they employ charms to protect their wealth. So what the minister is vying for is for the industry to reach out to increase sales volumes and therefore up the industry contribution to GDP. Sorry Lombe (MA) try next time.
of a business model that was dependent on gambling.
“You are not gamblers. The business model you are using is no sustainable as it is equivalent to witchcraft. We have to find a way of disconnecting you from gambling and witchcraft,” he said.
Looking at the above statement, i dont think he meant that….
Ummmmmmh, words misused, like seriously gambling & witchcraft…..?
Educating the public about the importance of insurance will boost their strategy…