THE Insurance Association of Zambia (IAZ) has commended government on its pronouncement to revise the current Pensions and Insurance Act.
IAZ Chairperson Christabel Banda explained that the new piece of legislation addressed various key areas that would promote the insurance sector.
Ms Banda said the move was a step in the right direction because it would improve the micro-insurance sector which had been lagging for a long time.
"We are very grateful that government is in the process of enacting a new Act. This will help Zambians because most of them are in the informal sector and it will definitely cater for their needs," she said.
She said the proposed bill gave recognition to local companies that they had previously not enjoyed.
Ms Banda observed that currently, it was difficult for the micro-insurance sector to grow but once the proposed law was enacted, it would help to spur growth in the industry.
She further noted that the bill catered to the needs of the low-income sector and, as such, had the potential to make the insurance sector stronger and more stable because these were the majority.
Recently, Minister of Finance Felix Mutati announced that Government was reviewing the current Pensions and Insurance Act in order to give incentives and stimulate local industries to participate in insurance activities.
Mr Mutati said Government took pride in wholly-owned Zambian insurance companies which were eager to compete internationally.