Appropriate insurance is one of the most effective risk management tools available to individuals, households and businesses of all scales and income levels. In many developing financial markets, however, insurance is one of the least used financial services, meaning low-income households and individuals are needlessly vulnerable to risk and financial shocks. Zambia is no exception; current insurance penetration is very low and – aside from mandatory insurance such as motor vehicle cover – still skewed towards high-income population segments. Finscope 2015 revealed that only 5.5 percent of Zambia’s adult population have insurance and pensions, only a slight increase from 4.0 percent in 2009. Additionally, Finscope 2015 shows that low levels of knowledge, awareness and understanding are the major barriers to access

The goal of the FSDZ’s insurance work is to reduce low-income households’ and individuals’ vulnerability and enhance their welfare by increasing access to better risk management financial services. We are doing this by helping to develop a vibrant and inclusive insurance market in Zambia, which will in turn ensure availability and access of insurance services for both rural and urban low-income households and individuals

FSDZ’s support to the multi-stakeholder Technical Advisory Group on microinsurance that coordinates work in this area is critical to engaging all stakeholders and ensuring a comprehensive approach to addressing key market constraints.

FSDZ’s support framework for inclusive insurance focuses on five main areas:
• Stakeholder engagement and process coordination
• Capacity building and innovation stimulation
• Building consumer education and protection services
• Research and knowledge management
• Enabling environment (policy and support services)