Glossary
Premium collection
Premium collection is the process of billing policyholders, receiving their premium payments and matching each payment to the correct policy.
Premium collection explained
Collecting premiums sounds simple but involves several steps: working out what is due and when, telling the policyholder, receiving the money through a payment channel, and reconciling it against the policy so the record shows the policy is paid up.
In Zambia, premiums are collected through Mobile Money, bank transfer, debit order, payroll deduction, cash at a branch or agent, and USSD. Each channel has its own confirmation and settlement process, and unmatched payments are a common source of lapsed policies and customer complaints.
Why it matters in life insurance
Persistency, meaning how many policies stay in force, depends heavily on how easy it is to pay and how reliably payments are recorded. Ontech LifeI ERP collects premiums through MTN Mobile Money, Airtel Money, Zamtel Kwacha and other channels and reconciles each receipt to the policy automatically.