Story by Stanley James, Business Editor
ZIMBABWE’S insurance industry has laid out its 2024 roadmap anchored on protecting pensioner and policyholder contributions.
An interface held in Harare recently between the government and the insurance sector provided an opportunity to assess the performance of insurance companies and their commitment to economic development.
While it also emerged that the sector has been vulnerable to local shocks that were to some extent eroding contributions, the sector has however remained resilient.
For the regulators, the insurance value chains are pinning hopes for better returns to the contributors on the newly introduced structured currency, the Zimbabwe Gold (ZiG) within the multicurrency system.
“The sector is critical in terms of performance of its role to economic development while for some years the instabilities within the economy have presented challenges. It is the ability of the sector to continue operating that has also set the tone for more confidence,” said IPEC Commissioner, Dr Grace Muradzikwa.
Government is confident that the ongoing currency reforms will help insurance companies in terms of value preservation of contributors’ funds.
“The Government is aware of the need to preserve the value of funds for the contributors. It is within such a perspective that converted measures are being taken to stabilise the domestic currency for the benefit of the sector,” noted Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube.
While most insurance players are dominating real estate investments to hedge against local and global economic shocks, stakeholders are concerned over low returns to the contributors.
