corporate finance assignment 2019.docx - THE UNIVERSITY OF...

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THE UNIVERSITY OF ZAMBIA In association with THE ZAMBIA CENTRE FOR ACCOUNTANCY STUDIES BACHELOR OF ECONOMICS AND FINANCE STUDENT NUMBER: AL1508 COURSE: CORPORATE FINANCE COURSE CODE: BEF 431 DUE DATE: 31 TH MARCH 2019 LECTURER:DR SYDNEY CHIKALIPAH
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Abstract Zambia had only 1 insurance company before 1991 because everything was state owned then after 1991 many others joined such as Madison general insurance and an insurance act was formed that was later amended to give way for life insurance. They are currently 295 businesses that have licenses to transact insurance business in the year 2019.of these 295 players in the insurance industry,30 of them are insurance companies of which 20 are into general insurance and 10 are into long term life insurance.38 of those 295 insurance players in the industry are licensed insurance brokers,3 are re-insurance companies, another 3 re- insurance brokers, another 2 are risk surveyors, next three are loss adjusters, then 3 are claims agencies and the remaining 213 are what are called insurance agents. Statistics showed that 2.8% of adults in Zambia have been insured 42% had no knowledge of insurance, 11.2% didn’t know where they could get it and 14.5% could not afford. This research was done in 2017 by the insurers association of Zambia. Policy recommendations would be to enhance insurance education, reduce minimum requirements and regulations that could help insurance companies reduce costs and make premiums more affordable and another recommendation would be to put a limit on how long it takes for one to get a claim making it more efficient and people more willing to subscribe.
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Before 1991 there was only one insurance company in Zambia which was the Zambia state insurance corporation (ZSIC).after 1991, Zambia’s insurance industry was made a free market which meant more players could emerge because of deregulation and in 1997 an insurance act was created and enforced which was later amended to give insurance firms the ability to provide life insurance. According to the insurers association of Zambia in a 2017 press release by the association’s executive director Christabel Banda, only 2.8% of all the adults in Zambia had been insured by then. She further explained that research had shown that an estimated 42% of the adult population had no knowledge of insurance in any form and that 11.2% had no idea where they
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  • Spring '19
  • insurance company

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