Zambia tightens insurance rules to protect consumers, boost local reinsurance

Zambia’s insurance industry has received a major regulatory overhaul following the issuance of three new sets of regulations designed to enhance market conduct, strengthen reinsurance practices and expand access to microinsurance.

The new set of regulations designed to strengthen consumer protection and enhance accountability within the insurance sector are expected to bring long-awaited relief to policyholders who have long voiced concerns about unfair practices and poor service delivery.

The measures form part of the ongoing operationalization of the Insurance Act No. 38 of 2021 and are expected to modernize the country’s insurance landscape, according to a statement issued by the Pensions and Insurance Authority (PIA).

The Insurance (Market Conduct) Regulations, Insurance (Microinsurance) Regulations, and Insurance (Reinsurance) Regulations—signed by Minister of Finance and National Planning Dr. Situmbeko Musokotwane on October 30, 2025—were officially published in the Government Gazette on November 14, 2025.

Announcing the regulations, PIA Communications Manager, Doreen Kambanganji-Silungwe, said the new regulations aligned with government priorities aimed at addressing long-standing challenges in the sector.

“These include protecting policyholders from unfair practices, expanding insurance access to all Zambians, and curbing capital flight resulting from the outsourcing of reinsurance to foreign markets,” Kambanganji-Silungwe said.

A key component of the reforms is the Market Conduct Regulations, which place strong emphasis on fair treatment of policyholders and standardizing how insurance products are sold.

Kambanganji-Silungwe said the regulations also introduced minimum disclosure requirements to ensure that consumers had access to clear and accurate information before committing to insurance contracts.

This included the mandatory issuance of Key Fact Statements outlining essential policy terms that customers must understand and keep on record.

Insurers would also be bound by maximum timelines for settling claims and resolving complaints—a move expected to significantly improve customer experience and accountability.

Kambanganji-Silungwe said the reforms directly responded to the issues frequently raised by the public.

“The Regulations will help address some of the challenges that the general public has been complaining about relating to delay in settlement of claims, misleading promotional material, lack of sufficient disclosure of information before a person enters into an insurance contract, as well as the conduct between insurers and their intermediaries,” she said.

Beyond consumer protection, the new Reinsurance Regulations aims to retain more insurance premiums within Zambia.

According to Ms Kambanganji-Silungwe, insurers would now be required to exhaust local reinsurance capacity before engaging foreign reinsurers—a policy expected to reduce capital flight and strengthen the domestic insurance market.

The regulations had also created a pathway for the designation of a National Reinsurance Company.

The Microinsurance Regulations, on the other hand, are designed to expand financial inclusion by establishing a formal regulatory framework for microinsurance providers.

“This is expected to improve access to affordable insurance products for low-income households and small businesses. Existing insurers that already provide microinsurance will be given a three-year transition period to fully comply with the new standards,” Kambanganji-Silungwe said.

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