03 May PRESS RELEASE-WHITE PAPER SUBMISSION TO NATIONAL ASSEMBLY: 2021 INSURANCE BILL.
WHITE PAPER SUBMISSION TO NATIONAL ASSEMBLY: 2021 INSURANCE BILL.
Following the presentation of the 2021 Insurance Bill in Parliament on Wednesday, April 21st 2021, by the Honourable Minister of Finance, the American Chamber of Commerce (AmCham) on 27th April, 2021 submitted an advocacy paper in line with a few articles of concern to the business community of the insurance industry sector.
In response to AmCham’s letter, the Parliamentary Committee on National Economy, Trade and Labour Matters called for a meeting on 29th April, 2021, where the Chamber was allowed to present its submission.
The Insurance Bill is meant to provide for the regulation of the insurance industry and to provide for the supervision of insurers, reinsurers and intermediaries.
In executing its advocacy role for its members and the business community, the Chamber made the following submissions to the National Assembly:
- The Chamber urged the Parliament of the Government Republic of Zambia to consider a revision of Section 2’s definition of an ‘insurance agent’ as the definition stipulated might be considered broad and vague.
- AmCham recommended that a specified period be stipulated on Section 28, subsection (1), for the ‘prescribed period’ of claim settlement.
- While recognizing government’s noble efforts to increase local ownership within the insurance industry sector, The Chamber urged Parliament to consider repealing or revising the clauses in Section 49 as it was concerned that these clauses may further alter the already declining investment climate of the nation, and additionally thwart the appeal of Foreign Direct Investment (FDI). In summary, Section 49, says:
- a licensed insurer/reinsurer shall not have less than 30 percent of their subscribed share capital owned by citizens;
- a licensed insurance broker shall not have less than 51 percent of their subscribed share capital owned by citizens;
- all insurance based companies that were initially licensed in accordance with the repealed act are to comply to Section 49 within a period prescribed by the Minister.
- Lastly, the Chamber requested a revision of Part IV; Sections 61, 62 and 64 of the 2021 Insurance Bill to include further prescriptions of the financial regulations of insurers. This is owing to the concerns that the current stipulations vaguely acquiescence the prescriptions of all further financial regulations.
The American Chamber of Commerce in Zambia believes that the Zambian National Assembly’s willingness to take action now will demonstrate the Government’s dedication to the Economic Recovery Plan and to the creation of a diversified and versatile Zambian private sector.
The American Chamber of Commerce in Zambia, established in 2011, is the apex bi-lateral chamber synergizing Zambian-US trade and Investment relations. The Chamber aims to serve American citizens and American controlled companies doing business in Zambia, as well as Zambian businesses already, or seeking to become involved in trade with the United States.
American Chamber of Commerce in Zambia