The Insurers Association of Zambia – IAZ has called for the development of micro insurance products which include weather index services, funeral services and travel services insurance disclosing that they are affordable and can be accessed by any group of people.
IAZ Consumer Education and Risk Manager Kambole Chituwo has told the Zambian Business Times – ZBT in an exclusive interview that there is need to also take consumer education seriously as most people do not understand or appreciate how insurance works before taking up a product adding that it an obstacle to the growth of insurance in Zambia.
He said Agriculture being one of the major contributor to the country’s economy not only through being the largest employer, but also through food and non food production, farmers should take advantage of the weather index product to cover themselves against the loss of inputs due to bad weather.
IAZ has since encouraged farmers to seize such opportunities and that the weather index insurance product is affordable as it uses Information technology such as sate-light technology, mobile phones and other online methods to communicate which farming areas have been hit with bad weather
“The weather index product insures against losing inputs because of bad weather and it reduces cost, enables the farmer to protect against loss of capital for the next farming season. When one losses input because of bad weather, weather index will be able to cover for the lost inputs so that the farmer can plant again before the farming season is over” he said.
Kambole encouraged on the use of Information and Communications Technology – ICT by Zambians if product’s such as micro insurance is to thrive in the country. The Association notes that financial services are now mostly available through online platforms and that ICT is one way in which individuals can access products available under the insurance system in a much more efficient and effective manner.
Meanwhile, the Association has continued to sensitize members of the public and business houses on the need for people and businesses to get insured and has since urged its members to emphasize the importance of insurance and educate the public on how to go about it.
“It is important to embrace ICT as most financial services are being offered through online platforms such as the mobile money accounts by these network providers and some insurance companies only offer services through online platforms because the cost of putting up an infrastructure in every area or districts is expensive.
The use of already existing ICT infrastructure such as the mobile money network has prominence and cannot be over emphasized as it is likely to groom not only the insurance sector but also other systems in the country,” he said.
He further reiterated the importance of insurance in a country saying it protects the welfare of people regardless of the occupation and has urged the public to get better understanding on how to handle their risks and how insurance can help them get covered or mitigated.
