An Analysis of the Challenges faced in Underwriting by Life Insurance Companies in Zambia
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Date
2024
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University of Lusaka
Abstract
This dissertation provides an analysis of the challenges faced by life insurance companies in Zambia during the underwriting process. The research adopts a mixed-methods approach, incorporating qualitative interviews with industry experts, policymakers, and senior executives from leading insurance companies, alongside quantitative data analysis based on historical underwriting performance. The study identifies several key challenges, including the lack of comprehensive and reliable data on mortality rates, insufficient actuarial expertise, and limited access to advanced underwriting technology. Moreover, the prevalence of fraud and misrepresentation in insurance applications further compounds the challenges faced by insurers. Drawing on international best practices and lessons from comparable markets, this research proposes strategic recommendations to address the identified challenges. These recommendations encompass technological investment for data analytics, capacity building through training and talent retention programs, and enhanced collaboration between insurers and regulatory bodies to combat fraud effectively. The implications of implementing these recommendations are expected to be far-reaching, fostering sustainable growth within the Zambian life insurance sector. By surmounting the underwriting challenges, insurers can enhance their risk assessment capabilities, offer more competitive and tailored products, and increase insurance penetration in the country. Ultimately, this dissertation aims to contribute valuable insights to both academia and industry practitioners, fostering a deeper understanding of the challenges in life insurance underwriting in Zambia and paving the way for a more robust and resilient insurance sector in the nation.