11 micro-insurance firms licensed

THE Insurance and Pensions Commission (Ipec) has licensed 11 micro-insurance firms in a bid to close insurance gaps in the sector, Ipec Public Relations manager, Mr Lloyd Gumbo has noted.

Speaking at the inaugural Annual Financial Inclusion conference in Victoria Falls on Monday, Mr Gumbo told delegates that inclusive insurance is generally defined as access to and usage of appropriate and affordable insurance products for the unserved and under-served, with a particular emphasis on vulnerable and low-income populations.

His presentation was on Inclusive Insurance-Making Access Possible for the Marginalised.

He noted that inclusive insurance helps by offering affordable and accessible insurance products to low-income individuals and marginalised communities who were previously excluded from the traditional insurance market.

It also provides a cushion against unexpected financial shocks, ultimately contributing to poverty reduction and economic growth.

However, Mr Gumbo noted that Zimbabwe’s insurance penetration is about 1,7 percent and according to Ipec 2019 survey, about 70 percent of Zimbabweans are without any form of insurance policy

Of the 30 percent with insurance, about 75 percent are funeral policies.

He blamed affordability, inadequate infrastructure, low confidence levels, lack of awareness and understanding, informal economy, complex administrative procedures and inappropriate products.

Mr Gumbo said several initiatives have been put in place by Ipec to close insurance gaps.

Main products offered include legal aid, savings plan, funeral cash plan and health insurance.

He said to date, Ipec has licensed 11 dedicated micro-insurance companies but three are operating, reviewed the Product Approval Framework to promote development of innovative insurance products adding that the insurance regulator is working on enforcement of Fair Treatment of

Insurance and Pension Consumers.

Part of the initiatives include approval of micro-insurance products offered by conventional insurers, collaboration with the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development for the inclusion of agricultural insurance in Extension Officers’ Training Curriculum and promotion of consumer Education and Awareness.

“Ipec is also spearheading various projects, among them the Innovation Lab, Agricultural Index Insurance and the Bima Lab whose objective is to come up with insurance solutions for smallholder farmers to mitigate the effects of climate change,” said Mr Gumbo.

Ipec is a statutory body that was created through an Act of Parliament — the Insurance and Pensions Commission Act (Chapter 24:21) to regulate the insurance and pensions industry in Zimbabwe.

The Commission’s principal function is to protect the interests, rights and benefits of insurance and pension consumers and to ensure that there is general stability of the insurance and pensions industry.-chronicle