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Zambia: Hope On Horizon for Insurance Industry

 

The sustained haemorrhage of huge amounts of funds in form of reinsurance premiums has continued smacking the insurance industry in Africa.

This is, mainly, because - globally- the sector is dominated by the wealthy developed countries mostly from Europe and the Americas.

For instance according to the 2013 KPMG sector report on Insurance in Africa, the Group of Seven (G7) alone accounted for nearly 65 per cent of the total premiums even though the seven countries account for just 10 per cent of the global population.

The report indicates that in those seven developed countries, an average of US$3,910 was premium per capita in 2012.

This is as compared to the average $120 per person which was spent on insurance by the citizens of the emerging economies.

For the reinsurance, which is the insurance companies' sharing of risks by purchasing insurance policies from other insurers to limit the total loss the original insurer would experience in case of disaster, therefore, the situation is not different.

 

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