Product administration
Unit-linked policy administration software
A unit-linked policy is a life insurance contract whose savings element is invested in one or more funds. Premiums, after charges, buy units in the chosen funds, and the policy's value rises and falls with the unit price. Life cover is provided alongside the investment, and the policyholder can usually switch between funds and change how premiums are split.
Unit-linked administration is investment administration as much as insurance administration: the system must allocate units at the right price, deduct charges, record fund switches, and value the policy at any date. Ontech LifeI ERP administers unit-linked policies for life insurers in Zambia alongside their traditional products.
Key capabilities
Fund and unit price maintenance
Maintain the funds offered, record unit prices as they are published, and value every policy at the latest price.
Premium allocation
Apply allocation rates and charges to each premium and buy units in the policyholder's chosen funds at the applicable price.
Fund switching and redirection
Process switches of existing units between funds and redirection of future premiums, with any switch limits or charges applied.
Charge deductions
Deduct mortality, policy and fund management charges by cancelling units on the schedule defined in the product.
Withdrawals and surrenders
Quote and pay partial withdrawals or full surrenders at current fund value, less any surrender charge in the early years.
Statements and claims
Issue unit statements to policyholders and settle death claims at the greater of the sum assured and fund value, or as the product defines.
How it works
- The insurer sets up the unit-linked product: funds, allocation rates, charges, switch rules and the death benefit basis.
- The policy is issued with the policyholder's initial fund selection and premium split.
- Each premium received is allocated to units at the price applicable on the allocation date.
- Unit prices are updated as published, and each policy's value is recalculated.
- Charges are deducted by cancelling units, and switches, redirections and withdrawals are processed on request.
- On maturity, surrender or death the policy is valued and the benefit paid through the claims or surrender workflow.
Benefits
Accurate unit records
Every allocation, switch and charge is recorded as a unit transaction, so the policy value can be reproduced and audited.
Self-service for investors
Policyholders can view fund values and request switches through the portal or app instead of writing to the insurer.
Product flexibility
New funds, charge structures or allocation rates are configured in the catalogue rather than built into code.
Clear reporting
Unit-linked liabilities are largely fund-backed; keeping unit records in the same system as the ledger simplifies the reporting an insurer must do.
Who it is for
- Life insurers in Zambia offering investment-linked savings or retirement products.
- Insurers that want policyholders to see fund values and switch funds without staff involvement.
- Companies moving unit-linked books off spreadsheets where unit reconciliation has become a risk.
Zambia-specific considerations
Unit-linked products in Zambia are typically sold to salaried and higher-income customers as a combined savings and protection plan. Their appeal depends on transparent charges and visible fund performance, so the administration system must present unit statements clearly to policyholders and their agents.
Because the policyholder bears the investment risk, the Pensions and Insurance Authority expects insurers to be able to demonstrate accurate unit allocation and fair valuation. Keeping unit transactions, prices and charges on one auditable record supports that expectation.
How Ontech LifeI ERP addresses this
Unit-linked as a first-class product line
Ontech LifeI ERP treats unit-linked policies as a distinct product line with fund selection, unit valuation and switching, not as an endowment with extra fields.
Same channels as every other product
Premiums for unit-linked policies are collected through Mobile Money and bank channels, and policyholders see their fund values in the client portal and Android app.
Linked to actuarial and ledger
Unit transactions feed the general ledger and the actuarial and IFRS 17 reporting modules so the operational and financial views stay in step.
Frequently asked questions
What is a unit-linked policy?
A unit-linked policy is a life insurance contract in which premiums, after charges, buy units in investment funds chosen by the policyholder. The policy's value follows the unit prices, and life cover is provided alongside the investment.
How does fund switching work?
The policyholder asks to move existing units from one fund to another, or to redirect future premiums. The system sells units at one fund's price and buys at the other's, applying any switch limits or charges set in the product.
What charges apply to unit-linked policies?
Typical charges are an allocation charge on premiums, a policy or administration charge, mortality charges for the life cover, and a fund management charge. Ontech LifeI ERP deducts these according to the product configuration, usually by cancelling units.
What is paid on death under a unit-linked policy?
That depends on the product. Common bases are the higher of the sum assured and the fund value, or the sum assured plus the fund value. Ontech LifeI ERP applies the basis defined for the product.
Can policyholders see their fund value online?
Yes. Fund values and unit holdings are visible in the client portal and Android app, and switch requests can be submitted there.
See Ontech LifeI ERP for your company
Book a demo with Ontech Solutions in Lusaka and see policy administration, claims, Mobile Money collection and PIA reporting working together in one platform.
Last updated 2026-09-13. Published by Ontech Solutions, Lusaka, Zambia.