Insurance
ZAMBIA INSURANCE SECTOR KEY FIGURES 2025, GDP, PREMIUMS, GROWTH
| GDP Share (incl. Pensions) | Real Growth 2025 | Net Assets Q4 2025 | Gross Written Premiums |
|---|---|---|---|
| 1.23% | -7.4% | ZMW 3.2 billion | ZMW 10.5 billion |
Insurance and pension funds contributed 1.23% to Zambia’s GDP in 2025, though real output contracted 7.4% even as nominal premiums grew, and insurers’ net assets rose to ZMW 3.2 billion in the three months to December 2025.
Profitability diverged sharply within the sector: non-life insurers posted profitable underwriting, with their combined ratio falling below the 100% break-even threshold, while life insurers continued recording underwriting losses as claims rose.
Sector Size
Insurance and pension funds contributed 1.23% of Zambia’s nominal GDP in 2025[1]. In real terms, the sub-sector’s output contracted 7.4% over the year even as its nominal value grew, indicating the growth reflected premium and price increases rather than higher underlying activity[1].
Sector Growth and Premiums
Insurance companies grew their assets and contracted their liabilities over the three months to December 2025, pushing net assets up to ZMW 3.2 billion[2]. Revenue continued growing on rising appetite for insurance cover, including life and health policies, though aggregate annual gross written premiums were little changed at ZMW 10.5 billion, while annual net premiums rose to around ZMW 6.7 billion[2].
A Two-Speed Profitability Picture
Non-life, or general, insurers recorded profitable underwriting, with their aggregate combined ratio falling below the 100% threshold that separates profitable underwriting from loss-making underwriting, an improvement driven by lower claims and commission expenses than the prior period[2]. Life, or long-term, insurers moved the other way, continuing to record underwriting losses as their combined ratio remained above that same threshold, a deterioration the Bank of Zambia attributes to higher claims[2].
Regulatory Framework
The Pensions and Insurance Authority regulates Zambia’s insurance sector under the Insurance Act No. 38 of 2021, which repealed and replaced the Insurance Act of 1997 and is supplemented by the Insurance (General) Regulations, 2022, covering supervision of insurers, reinsurers and intermediaries, financial regulation, microinsurance, and management and shareholding requirements[4]. The Authority coordinates with the Bank of Zambia on hybrid products such as bancassurance to ensure they remain regulatory-compliant and capital-efficient[3].
Investment Opportunities
The gap between non-life insurers’ profitable underwriting and life insurers’ ongoing losses points to where underwriting discipline and product design have room to improve, particularly on the claims side of the life book[2]. The sector’s real contraction despite nominal premium growth also suggests genuine volume expansion, not just repricing, is the opportunity still on the table[1].
Last Update: August 2026
