A model framework for Bancassurance regulation in Zambia

Abstract

The dictates of modern commerce require that clear regulations govern its key aspects. Insurance plays a vital role in the life of an economy’s commerce. The modern trend globally is for insurers to distribute insurance products through a growing variety of intermediaries. The role that banks play as intermediaries in the distribution of insurance products to consumers through their vast networks generates massive business revenues globally. In Zambia, banks and insurance companies have partnered to offer insurance products to consumers in spite of the want of regulations governing these partnerships. This problem is compounded by the fact that these partnerships between banks and insurance companies are proscribed by express provision of law. There lies the problem which this paper seeks to explore and resolve. The paper recommends regulation of bancassurance and proposes a framework which such regulation should take. The principal technique adopted in this paper is the social-legal research approach