eBusiness Weekly
Michael Tome
HARARE – Zimbabwe’s pensions industry aims to increase insurance penetration ratio to 20 percent from the current 4 percent by 2020.
This is one of deliverables set for the insurance sector by the Transitional Stabilisation Program (TSP).
Notable among the insurance industry’s goals include regulation and supervision of medical aid scheme and legal aid societies by Insurance and Pensions Commission (IPEC).
Presently, the majority of the Zimbabwean population has been responsive to funeral policies as compared to other insurance products and as such insurance penetration stands at 4, 7 percent which is two percent ahead of the region’s average of three percent.
Speaking on behalf of Secretary Development George Guvamatanga at the inaugural insurance and pensions media awards, Principal Director in the Ministry of Finance and Economic Mr Zvinechimwe Churu said the ministry was looking forward to growth in insurance penetration ratio, focusing mainly on rules that hinder licensing of brokers and underwriters.
“Government has just launched the transitional stabilisation programme, a successor economic blueprint to ZimAsset.
“The blueprint set some deliverables for our sector, this include increasing insurance penetration ratio from the current four percent to 20 percent
“We look forward to review some of the stringent insurance industry licensing requirements including for brokers and underwriters.” said Mr Churu.
The highest insurance penetration in the region is South Africa at 15 percent while Zambia and Mozambique is estimated at 3 percent and 1, 3 percent respectively.
Angola and Kenya have insurance penetration at 1 percent and 3 percent respectively, according to Willis Towers Watson report on Sub Saharan Africa Insurance.
Insurance penetration growth aims to be driven by widening insurance support to agriculture through facilitating development of insurance products that target agriculture as well as robust awareness programmes for the market.
Meanwhile various players have been coming up with products that are relevant to current market trends, characterized by a booming small to medium enterprise (SME) sector.
