insurance over

The Pension and Insurance Authority (PIA), the regulator of the insurance sector, said the move is in line with a statutory instrument issued by the government early this year.

insurance over
Michael Libinga, the PIA Registrar said the move is aimed at having a solid, competitive and sustainable sector as it will strengthen the financial base of the sector.

Capital forms the basis of financial strength for any insurance company and supports better risk management and market confidence, he added.

The official said in a statement that the transitional period for the entities to comply with the requirement of the new minimum capital requirement shall be two years from date of coming into force of the statutory instrument.

According to the new minimum capital requirements, reinsurance companies are required to raise their paid capital to 20 million Zambian kwacha(about 1.74 million U.S. dollars) from 1 million kwacha(about 87 thousand U.S. dollars) while long-term and general insurers are required to raise their paid up capital to 12 million kwacha(about 1.04 million U.S. dollars. Enditem

Source: Xinhua


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