The year 2003 manifested steady growth in the insurance industry. Gross insurance premiums rose from K223 billion in 2002 to K274 billion, an increase of K51 billion (23%). General insurance premiums totalled K226 billion and accounted for 82.84% of all premiums received. However, net retention was greater in the life assurance as reinsurance ceded in this sector was 12.52% of gross premiums compared to 36.34% in the general insurance sector. In this regard one of the major objectives of the office was to promote the retention of insurance premiums in Zambia by urging local insurers to increase their paid up share capital base.

This issue represents the sixth annual report produced as required under Section 103 of the Insurance Act, No. 27 of 1997. The report covers the operations of the Insurance Act during the period ended December 31, 2002. The report compares the developments of the Insurance industry during the year with the year ended December 31, 2001.

The insurance industry consists of various members whose roles are closely interrelated.