PIA to launch insurance regulatory sandbox in 2026

The Pensions and Insurance Authority (PIA) will next year roll out the country’s first insurance regulatory sandbox, a landmark initiative aimed at fostering innovation, resilience, and long-term growth in Zambia’s insurance sector.

Announcing the development at the ongoing 2025 Insurance Conference in Livingstone, PIA Registrar and Chief Executive Officer, Namakau Ntini, said the sandbox would create a controlled environment where insurers and innovators can test new products and technologies under regulatory oversight.

“The sandbox will allow the industry to explore how insurtech can drive operational efficiency, improve customer experience, and develop innovative solutions to address market uncertainty,” Ntini said.

She added that the presence of insurtech players at the conference was timely, as disruptive innovations such as AI-driven underwriting and blockchain-enabled claims management have the potential to transform the insurance landscape.

“Our role as a regulator is to partner with the industry to facilitate growth, ensure stability, and safeguard the interests of policyholders,” she emphasized.

PIA Board Chairperson, Peter Banda, noted that the sandbox framework would give insurers flexibility to experiment with innovations without being constrained by traditional regulatory hurdles.

He stressed that technology and innovation were critical in enhancing efficiency, boosting competition, and driving sustainable growth.

“By leveraging fintech, data-driven solutions, and other non-traditional approaches, insurers can respond to changing market demands while remaining resilient,” Mr Banda said.

Beyond technological advancement, he cautioned that the industry must also contend with broader challenges such as climate change and economic volatility, which continue to test the sector’s resilience.

“In this environment, robust risk management, forward-looking supervision, and dynamic capital frameworks are imperative,” he added.

Mr Banda further welcomed the approval of three new insurance regulations in July 2025, particularly the introduction of microinsurance rules, which are expected to extend coverage to underserved populations while strengthening industry stability and growth prospects.

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