The Pensions and Insurance Authority – PIA has disclosed that the authority anticipates to raise about K1.3 million (about US$93,000) from the disposal of Focus Life Assurance assets and a further K332,000 (about US$24,000) from the disposal of A-Plus Life Assurance assets.
The Authority had in 2017 placed Focus Life Assurance and A-Plus Life Assurance Limited under liquidation for failure to raise the minimum capital in line with statutory regulations of raising minimum capital for insurance companies.
PIA Registrar and Chief Executive Officer Christopher Mapani on February 3, 2019 told the Zambian Business Times – ZBT that the two liquidations affected in excess of 1,800 policyholders under Focus Life Assurance and 780 policy holders under A-Plus Life Assurance respectively.
He added that the total value of policyholder liabilities is estimated at K7.51 million in respect of Focus Life Assurance and K1.92 million for A-Plus Life Assurance. Mapani said the authority intends to commence partial payment of claims by 31st Match 2019 and part of the shortfall may subsequently be offset from the insurance Fidelity Fund adding that payment modalities will be communicated in due course.
“We therefore appeal to claimants to wait for further guidance from the Authority. And I wish to announce that, in an effort to protect policyholders by ensuring that they qualify to access the Fidelity Fund,” he said.
Mapani further disclosed that another Insurance Company known as Windsor General Insurance Limited was placed under compulsory liquidation on 2nd January 2020 on account of failure to meet solvency requirements as provided under the insurance act.
He said the company was not licensed in 2019 and subsequently failed to recapitalize hence the authority is currently taking stock of the company’s assets and liabilities and policyholders and creditors will be invited to lodge their complaints and claims in due course.
Mapani is however hopeful that the measures being put in place by the authority will continue facilitating the growth of the insurance industry and that it will look forward to collaborating with the stakeholders in the industry in unlocking the potential of the pensions and insurance sector.
