Story by Online Reporter
ZIMBABWE’s life assurance sector recorded significant growth in the first nine months ending September 30, 2025, with insurance revenue rising by 39 percent to approximately US$172.05 million, largely driven by sustained demand for funeral and group life assurance products, according to the Insurance and Pensions Commission (IPEC).
In its latest Life Assurance Sector Report as at 30 September 2025, IPEC said the growth reflects sustained demand for funeral and group life assurance products, which continue to underpin the sector’s performance amid a changing economic and regulatory environment.
“During the review period, direct life insurers generated insurance revenue of ZiG$4.59 billion, which converts to approximately US$172.05 million using the average official exchange rate. This reflects a 39% change from the US$123.77 million recorded in the same period of 2024,” read the report in part.
During the review period, the sector comprised 12 registered life insurers, supported by a total of 1 760 agents, both corporate and individual, up slightly from 1 746 agents in the previous quarter, signalling modest growth in distribution capacity.
IPEC noted that foreign currency-denominated revenue accounted for 55 percent of total insurance income, down from 62 percent in the previous period. The decline was largely attributed to relative exchange rate stability during the review period. However, the Commission expressed concern that Heritage Life and Nhaka Life failed to submit their mandatory foreign currency returns, warning that non-compliance could attract regulatory sanctions.
Funeral assurance and group life assurance remained the dominant sources of income, jointly contributing 82 percent of total sector revenue. Funeral assurance alone accounted for 68.04 percent, while group life assurance contributed 14.27 percent, reinforcing the sector’s growing reliance on these products.
IPEC observed that the increasing dominance of funeral and group life assurance is steadily eroding the market share of traditional long-term life assurance products. Credit assurance emerged as the largest segment outside the leading products, contributing 7.90 percent of revenue, followed by term insurance at 4.35 percent and other life products at 4.3 percent. Endowment plans and whole life policies accounted for marginal shares of 0.59 percent and 0.54 percent, respectively.
“Funeral assurance remains the main driver of the life assurance sector, representing 68.04% of total revenue. Group life assurance is the second largest segment, making up 14.27% of total revenue. 6.2. Outside of the leading products, credit assurance accounted for the largest segment at 7.90% of total revenue. Term insurance contributed 4.35%, followed by other life products at 4.3%. The remaining segments, endowment plans and whole life, represented marginal shares of 0.59% and 0.54%, respectively.”
The report highlighted a notable structural shift within the industry, with insurers increasingly favouring renewable annual policies over traditional long-term products. This trend is particularly pronounced in funeral and group life assurance offerings. IPEC warned that the practice raises regulatory concerns, especially regarding alignment with the objectives of the Funeral Directive and the adequacy of policyholder protection. The Commission urged insurers to strictly adhere to existing regulatory requirements.
“A notable trend in the life insurance industry is the shift from traditional longterm products towards predominantly renewable annual policies. This change is especially clear in funeral assurance and group life assurance policies currently available. This practice raises regulatory concerns about its compliance with the Funeral Directive’s objectives, particularly regarding the level of policyholder protection. As a result, the industry is strongly encouraged to strictly follow the rules set out in the Funeral Directive,” IPEC noted.
In terms of market structure, Nyaradzo Life Assurance Company maintained its leading position, commanding a 39.27 percent market share, largely driven by its strong funeral assurance portfolio. The top five life insurers generated combined revenue of ZiG$3.85 billion, or approximately US$144.33 million, accounting for 84 percent of total sector revenue.
This high concentration was reflected in a Herfindahl-Hirschman Index of 2 184.10, indicating a moderately concentrated market dominated by a few large players, but with some competitive dynamics still present.
IPEC said the latest performance underlines both the resilience of the life assurance sector and the need for continued regulatory vigilance to ensure balanced growth, consumer protection and long-term sustainability.
