THE Pensions and Insurance Authority (PIA) has proposed to increase the regulatory minimum capital requirement for the insurance industry to K10 million from the current one million Kwacha.
PIA deputy registrar in charge of insurance Muyoya Chibiya said the proposed new paid up capital requirement was expected to take effect by 2015.
"The law is expected to be passed in 2014 but we will give time for compliance of one year and we have already started talking to the insurance firms and they are beginning to reposition themselves and most insurance companies are adjusting.
"We had put the K1 million level 16 years ago and what we are trying to do is to bring the companies to the level where by 2015 the minimum paid up capital will be K10 million which will be slightly about $2 million," he said.
Speaking during the insurance training workshop in Lusaka yesterday, Mr Chibiya said the proposal for the increment had been submitted to the Government for approval.
"We have made the proposal to Government to increase the minimum regulatory capital requirement for the industry from $200,000 to about $2 million. This will be an entry point for insurance companies in Zambia," he said.
On Tuesday, PIA registrar Martin Libinga said with the higher capital levels, more retention from the market was expected.