Forex insurance business grows 21pc

THE Insurance and Pension Commission (IPEC) says short-term foreign currency dominated insurance business grew its revenue by 21 percent during the half-year ended 30 June 2022 to US$66,68 million from US$54,90 million reported during the comparative period in 2021.

In a statement accompanying its short-term report for the period under review, the commission
said foreign currency denominated business contributed 47 percent of the total business generated
by the short-term players during the period.

“Gross Premium Written (GPW) in foreign currency during the half-year ended 30 June 2022 was
US$66,68 million representing a 21 percent increase from the US$54,90 million reported during
the comparative period in 2021,” said IPEC.

“Foreign currency denominated business contributed 47 percent of the total business generated by
the short-term players during the period under review.”

According to Ipec, the short-term line of businesses includes aviation, engineering, fire,
miscellaneous accidents and others, which include bankers’ blanket policy, contractors all risk,
directors’ and officers’ liability, employers’ liability and health.
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The commission said motor and fire insurance maintained their dominance as the major sources of
business contributing combined 63 percent of the GPW during the first half of 2022 down from 64
percent for the comparative period in 2021.
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“In line with Zimbabwe dollar denominated business, the major sources of foreign currency
denominated business for short term insurers were motor, asset all risk and fire, contributing a
combined 67 percent of GPW during the half-year ended 30 June 2022,” it said.

Meanwhile, the commission said total GPW by short-term insurers increased nominally by 200
percent from Z$9,95 billion in June 2021 to Z$29,84 billion during the comparative period in
2022.

“The growth is mainly attributable to insurance premiums tracking inflation developments.
“The total business written by short-term reinsurers increased by 191 percent from Z$5,22 billion
for the half year ended 30 June 2021 to Z$15,20 billion during the period under review,” said the
commission.

“In terms of foreign currency denominated business, the reinsurers reported a 27 percent increase
from US$41,35 million reported during the half year of 2021 to US$52,54 million during the
comparative in 2022.”

Ipec is a statutory body mandated with regulating, supervising and developing the insurance and
pensions industry for the protection of policyholders and pension scheme members in Zimbabwe.
— The Chronicle