Skills gap hampers risks management in insurance industry
THE Insurance Institute of Zimbabwe (IIZ) says the insurance industry is battling a skills gap critical for assessing and managing emerging risks like climate change and cyber threats.
This, together with negative effects of economic instability, are slowing industry’s growth and hindering its ability to effectively serve customers, IIZ general manager Davison Choeni said.
Key challenges include a shortage of expertise in areas like digital literacy, risk management and customer service, as well as economic headwinds such as high inflation and currency volatility. These headwinds have led to reduced demand for insurance products and increased operational costs for insurers.
“We’re facing a critical skills gap, particularly in areas like data analytics and artificial intelligence, which are essential for assessing and managing emerging risks like climate change and cyber threats,” Choeni told NewsDay Business.
To address these challenges, IIZ has introduced several initiatives aimed at professional development, including certification programmes and mentorship schemes designed to improve industry standards and help professionals adapt to the shifting market landscape
“Our training programmes and certifications, such as the Associate and Fellow of the Insurance Institute of Zimbabwe, are crucial in ensuring insurance professionals are equipped with the skills necessary to meet the industry’s evolving demands,” Choeni said.
The rise of InsurTech has presented both opportunities and challenges.
Choeni said while digital tools like blockchain and data analytics have the potential to enhance customer service and streamline operations, their adoption has been slower than expected due to a lack of training and resistance to change.
“InsurTech is reshaping the industry, but professionals must embrace these tools to remain competitive and meet the modern consumer’s demands,” he said.
Compounding these issues is the economic climate, with high inflation and currency instability raising operational costs and making insurance unaffordable for consumers.
“The demand for insurance products has dropped as people prioritise immediate financial needs over long-term protection and rising claims due to economic challenges are putting pressure on insurers,” Choeni said.
Despite these challenges, the IIZ remains committed to improving the skill set of industry professionals and leveraging technology to adapt to the rapidly changing market environment, he said.-newsda
