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sky’s the


for ZSIC

South Africa Magazine visits Zambia and looks at the growth potential for ZSIC, one of the country’s leading insurance services providers.

By Ian Armitage 2



SIC Limited, formerly Zambia State Insurance Corporation Limited, is one of Zambia’s leading insurance services providers. It was founded in 1971 following the nationalisation of the insurance market and is based in Lusaka. Until 1991 ZSIC was the only insurance company in the market and gained vast experience in transacting both short and long term insurance. In line with the provisions of the Insurance Act No. 27 of 1997 as amended by Act No. 26 of 2005, the ZSIC underwent a restructuring and compliance exercise. This saw the birth of three separate business entities: ZSIC Limited, the Holding Company, and ZSIC General Insurance Company Limited and ZSIC Life Limited as subsidiary companies. ZSIC, through those subsidiaries, offers various products under various insurance classes such as fire, marine, aviation, accident, motor vehicle, life insurance, as well as pension administration and pension fund management. In April this year it appointed a new CEO - George Silutongwe. He is an insurance veteran and has worked in the industry since 1980. He has in his career worked as Managing Director of Professional Insurance Corporation Zambia Ltd, Managing Director of Professional Life Assurance Limited, Deputy Director of Zambia Insurance Business College Trust and Assistant General Claims Manager at ZSIC. He is a Chartered Insurer who holds a Master of Business Administration Degree from University of Lincoln



in UK and is also an Associate of the Chartered Insurance Institute, a member of the Institute of Risk Management, UK, and fellow of the Insurance Institute of Zambia. He is excited by the challenge of leading the ZSIC Group of Companies. “I was appointed in April,” Silutongwe tells South Africa Magazine. “ZSIC is an organisation with a great history and I’m excited to see what I can do in a company like this because it has almost unlimited potential. “ZSIC has served the people of Zambia for over 40 years. We have a fantastic heritage and we are geared to getting better with age.” ZSIC Limited is poised for phenomenal growth, he adds, believing insurance penetration in Zambia is very low and can only improve. “Our vision is to be Southern Africa’s leading provider of innovative fund management and investment solutions.

Our vision is to be Southern Africa’s leading provider of innovative fund management and investment solutions


Ultimate Technology Ultimate Technology is a leading provider of customer-focused financial and business management solutions. As an Infor Channel Partner, we deliver SunSystems based solutions taking the advantage of enterprise-wide extended solutions available from Infor. Among the beneficiaries of our solutions is the ZSIC Group of Companies. Being in the insurance business, ZSIC faces challenges like: • Strategic objectives • Regulatory compliance • IT for strategic advantage • Risk management • Insurance brokers, intermediaries and general agencies. Our SunSystems solution responds to these challenges through its unified ledger concept and smart way of storing transactions that hold measurable parameters to provide ZSIC’s KPIs on its strategic goals.

“ZSIC is a major economic player that has supported and continues to support growth in Zambia’s capital market, money markets, and the property development market. “We help the Zambian economy to grow by putting together packages that help support enterprises, NGOs, Government Departments to operate with peace of mind as well packages for the development of small and medium sized enterprises (SMEs). We always look to improve and want to make the company as versatile as possible and improve all our processes so that we compete effectively in the market, which is growing every day. My idea is to make sure that we make this company as financially sound as possible and to generate employment as per mandate given to us by the Zambian Government,

P O Box 53432 Gaberone, Botswana Tel: +267 71414837 Fax: +267 3939611 Email: Web: Insureen Holdings is a software company specialising in delivery of short-term insurance business solutions in Africa. Since 1993, we have made substantive investment in understanding the needs of our customers. We are committed to building long-term customer relationships, by collaborating with other technical partners to deliver tried and tested systems based on low-cost technologies which are highly adaptable and dynamic, suitable for the varied economies across Africa.

Insureen is the supporting partner of ZSIC – Using Odyssey Enterprise System, Insureen has provided business operational effciency resulting in sustainable growth of their business since 2005. 5

which is also the main shareholder. We are an investment company and we’ll be looking to create some more subsidiaries so that we can contribute into the labour market, especially for young people.” The Zambian insurance market is growing all the time with new entrants coming in and making it a highly competitive field. The total insurance market is still small in absolute terms, but the sector is growing rapidly and the insurance game is changing. Just last month Hollard, South Africa’s biggest independent insurer, and ABSA Financial Services /Barclays announced the opening of a life insurance offices in Lusaka. “We’ve seen quite a sizeable amount of players (coming) in to the market in the last year and a half. The economy is growing and I guess everybody is looking to enter this market? It is a growth market and the opportunity is to grow the company really in terms of products and services. The number of investors is increasing as people are looking to invest into mining and mineral processing; the government is promoting agriculture and tourism as priority sub sectors of the economy. We want to make a big impact in the insurance market. There is a lot happening in the development of infrastructure. Roads are being built and in the energy sector we expect an increase refurbishment and development of electricity power generating plants. There is further growth in the SADC region especially in countries like Angola and the DRC. These are regional markets with huge potential that we can benefit from.” 6

It is a growth market and the opportunity is to grow the company really in terms of products and services. The number of investors is increasing as people are looking to invest into mining and mineral processing

George Silutongwe -PICZ LTD, Zambia


Now is the time to polish the ZSIC group’s act, making sure it is at its best. “At the moment I see potential in the company. We have a huge asset base in both real estate and capital markets, as well as other investment vehicles. So, we are changing our people’s mindsets and reorganising our processes and procedures, whilst sourcing for more funding to improve certain areas such as IT in order to enhance our competitiveness.” Micro insurance is another priority. ZSIC already has some products in life that cater for low-income groups and it’s looking to create more. “We’re in the process of creating an asset management company so that we can deal with growing funds in a more focused way as well as operate for other private pension funds which are a potential market for us,” Silutongwe says.

“In terms of our future, the efficiency factor is an important one in us realising the potential. We already have a strong brand so it is about process improvements, efficiency, consistency and customer care. That is the key. “We are excited by the growth potential of Zambia’s insurance market as well as the wonderful opportunity to introduce a spectrum of innovative and affordable insurance solutions to consumers and business clients. Our investment will also contribute to promoting the relevance of insurance especially among uninsured consumers, and ultimately the sustainability of the Zambian insurance market and economy. “We have the experience and the strength.” END To learn more visit


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