Minimisation of late payment of premiums by intermediaries and probable solutions for general insurance companies in Lusaka, Zambia.

This study sought to understand the premium remittance challenges faced by the Zambian general insurance industry, and suggest realistic solutions. The research used an embedded mixed methods design. Structured questionnaires were distributed to 319 respondents, via email and also by hand. Interviews were also conducted with representatives from the brokers and insurers association, regulator and a service provider. Results of the study showed that defaulting brokers deliberately reneged on their obligations in order to derive financial benefits from using collected premiums. The unethical behaviour was found to be promoted by weak governance and a general lack of accountability especially among large indigenous brokers; lack of strict enforcement, as well as absence of a framework to protect the interests of insurers in situations where brokers default. The study also found that the preferred long-term solution to premium problems is the cash and carry principle, which strengthens the insurer’s position while bringing clarity and certainty to the status of insurance policies. Several amendments to the Insurance Act were recommended, as well as the need for further research to understand the likely impact of the cash and carry principle on insurance affordability, penetration, and sustainability of the insurance business in Zambia.