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Digital platforms, microinsurance solutions and data-driven products are key to expanding coverage to underserved groups, the Pensions and Insurance Authority (PIA) has said as it unveiled an insurance regulatory sandbox.
Speaking at the launch in Lusaka on Monday evening, PIA Registrar and Chief Executive Officer, Namakau Ntini, acknowledged that insurance penetration in Zambia remained below its potential.
She noted that many citizens — particularly small-scale farmers and informal businesses — were either uninsured or underinsured, highlighting a significant protection gap.
“The sandbox offers a pathway to test, refine and scale these solutions within a framework that builds trust and accountability. The launch comes at a time when the financial sector is undergoing major shifts globally, driven by technology and innovation, and Zambia is no exception,” Ntini said.
She emphasised that while the sandbox provided regulatory flexibility, it also placed a reciprocal obligation on industry players and innovators to act in good faith and prioritise consumer interests.
Read more: Zambia’s insurance sector net assets hit K25.6 billion, says Pensions and Insurance Authority
An insurance regulatory sandbox is a controlled and supervised environment that allows insurers and startups to test innovative products, services and business models without immediately facing the full regulatory burden.
PIA Deputy Registrar and Chief Executive Officer, Brian Manchishi, said the financial sector had seen the rise of digital platforms, technology-enabled underwriting, parametric and index-based insurance products, as well as new partnerships between insurers and technology firms.
Manchishi explained that the sandbox was designed as a time-bound testing framework that would enable firms to pilot new solutions under close regulatory oversight, with clearly defined consumer protection safeguards.
He added that the initiative was guided by international best practice, including frameworks developed by the International Association of Insurance Supervisors, the Access to Insurance Initiative and Financial Sector Deepening Africa.
“The challenge before us is to strike the right balance between enabling innovation and upholding our regulatory mandate,” Manchishi said.
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