Enhancing Risk Management Practices in Zambias's Insurance Sector: A Comprehensive Review

Abstract

The study seeks to investigate the effectiveness of risk management in the Zambia’s insurance sector. This was done by looking at regulatory support, technological adoption, stakeholder engagement and market conditions. The study also used two control variables, company size and organizational culture. The research majorly engaged explanatory analysis and correction analysis to establish the relationship between the variable and significance associations. Structured questionnaires were developed and circulated using google forms. The key finding indicate that Zambia has not reached a fully-fledged Enterprise-Wide Risk Management (ERM) as of 2024. Key challenges noted are the recoverability of premium debtors, Competition and resultant erosion of premium rates, impact on the amended insurance act and proposed solvency requirements as well as the new accounting system IFRS 17. The study further established that a sound regulatory framework is necessarily, coupled with swift adoption of technology, and concluded with recommending for stakeholder involvement in the implementation of ERM.