The Challenge

At the end of 2012, the Pensions and Insurance Authority (PIA) of Zambia, had more than 600 entities under its regulatory ambit. Strengthening the autonomy and enhancing the capacities of the regulatory authority became a critical area of focus under a long-term financial sector development plan. Of particular importance was the requirement to implement to a true risk-based approach to supervision.

To realise this vision, PIA required a comprehensive Pensions and Insurance Supervisory Management Information System (PISMIS) that enabled all regulated entities to electronically submit and manage:

1. Applications for registration & licensing

2. Applications for appointments which are subject to a Fit and Proper Test

3. Audited Annual Financial Statements, Actuarial Valuation Report/Certificates, Annual & Quarterly Returns, and Solvency Statements

PIA wanted this capability to be part of an integrated system that would provide structured support processes for inspections and a holistic risk-based view of each regulated entity.

An additional challenge was to find an existing proven product that could be fully configured and implemented within 7 months and delivered inside of budget.

Vizor Software provides a holistic suite of features geared specifically towards risk-based financial supervision and was, therefore, the best fit for our requirements.

Nicholas Mbuya, Insurance Project Manager, Pensions and Insurance Authority of Zambia

The Solution

Zambia’s PIA selected Vizor Software to implement their new Supervisory Information Management system. The resulting system collects regulatory data on a quarterly and annual basis. The system also provides a solution for on-site and off-site inspections, risk-based supervision and licensing for new market applicants.

This system includes Vizor’s three core application products based on the common Vizor Software platform:

  • Vizor Regulatory Returns
  • Vizor Licensing and Regulatory Transactions and
  • Vizor Risk-Based Supervision

The system continuously updates a regulated entity’s risk profile through ongoing supervision activities and assessment, which is used to determines ongoing frequency and intensity of supervision.

The Results

1. Holistic Risk-Based Supervision System

A transformation in financial supervision has been enabled by the new system. It includes a comprehensive risk profile for each regulated entity populated by returns collections, on-site inspections, surveys and ad-hoc requests and management meetings with regulated entities. The whole process is now fully traceable and accountable.

2. Improved Data Quality and Efficiency

Zambia’s PIA now benefits from significant improvements in the quality, consistency, reliability, and integrity of information submitted to, and subsequently published. PIA can now execute powerful validation rules that validate all data—not just with in a return, but also across time, across returns and against the regulated entity’s corporate profile.

3. Comprehensive Reporting

With the implementation of the Vizor Software Regulatory Returns product, all regulated entities now report through one system. PIA receives early warning notifications if key data thresholds are breached, enabling early intervention.

4. On-time and in-budget

The complete project was delivered in 30-weeks and inside of budget. Vizor supervisory solution is based on commercial off-the-shelf software. The extensive configuration capability ensured the project was delivered without delays normally found in big system projects.