Insurance was liberalized in 1991. Before that there were only two players in the market, Zambia National Insurance Brokers Limited and Zambia State Insurance Corporation Limited.
Since these institutions are owned by Zambians and Zambian Government they do not fall prey to money externalization and subsidizing premium costs of overseas outfits of mining companies in Zambia. Aon and Marsh Zambia (Alexander Forbes) are the brokers for KCM, Mopani, Lumwana, Chambeshi and many other mining companies operating in Zambia.
There are now 27 insurance companies that operate in Zambia but these two brokers choose either foreign owned insurance companies like Professional Insurance (Owned by Canadians of Pakistani origin, Hollard (Owned by middle eastern origin people of the book based in South Africa), or cash strapped Madison General Insurance to facilitate externalization of insurance premium, thereby depriving Zambian Owned insurers and brokers of their due share of the premium and brokerage income.
At the just concluded workshop organized by the Insurers Association of Zambia, these three insurance companies that dominate the proceedings at the workshop joined hands to kill the initiative of Coinsurance. Coinsurance was one of the main items on the agenda. They rushed the meeting to avoid talking about coinsurance. Coinsurance ensures that all risks that are domiciled in Zambia are first offered to insurance companies that are licensed by the Pensions and Insurance Authority before any insurer or broker can take any insurance premium out of Zambia. This is capital flight and depriving Zambian Insurance companies of steady income and growth prospects.
These two brokers in conjunction with these three insurers have killed Zambia State Insurance Corporation and Zambia National Insurance Brokers. Profits made by insurance companies are externalized by foreign owned companies. After 48 years of independence we are in the reverse gear of disadvantaging Zambians outfits and professionals. Insurance business is now controlled by Indians, Pakistanis, Middle Eastern and Europeans.
Government shall either take over all foreign owned insurance and brokering companies or force them to divest 75% shareholding to Zambians.