The Insurance and Pensions Commission (Ipec) has emphasised that insuring public assets is a matter of national interest, warning that the absence of adequate cover exposes the Treasury to unexpected fiscal shocks when disasters and other insurable events occur.
Ipec Commissioner Dr Grace Muradzikwa made the remarks at a high-level stakeholder consultative meeting held in Harare on Friday, convened jointly with the Ministry of Finance, Economic Development and Investment Promotion and players from the insurance sector.
Dr Grace Muradzikwa
The meeting focused on the importance of ensuring public assets as part of the National Development Strategy 2 (NDS2), the Government’s medium-term economic blueprint covering the period 2026-2030.
Dr Muradzikwa said effective insurance coverage ensures that losses arising from insured events are borne by insurers rather than the state.
National Development Strategy 2
“When public assets are insured, it is the insurer that compensates for losses arising from insured events, rather than the Government having to divert scarce public resources for repairs and replacement,” she said.
She noted that Zimbabwe has made significant investments in public infrastructure and institutions, which, without structured insurance protection, remain exposed to risks that could undermine development gains and exert pressure on public finances.
The consultative meeting underscored growing recognition among policymakers and industry stakeholders that protecting public assets through insurance is a critical component of fiscal sustainability, sound risk management and national resilience.
Mr Brian Chirema, the chairperson of the Technical Committee of the Insurance Council of Zimbabwe (ICZ), shared case studies from several jurisdictions where governments incurred heavy losses following catastrophes due to the absence of insurance cover.
“The economic cost of not insuring public assets is often far greater than the cost of paying insurance premiums, as uninsured losses frequently translate into long-term fiscal strain,” he said.
Adding a regional perspective, Ms Gloria Karissa, actuarial and insurance lead for DRIVE ( De-risking, Inclusion and Value Enhancement) and public sector & inclusive solutions at ZEP-RE, a leading reinsurer in Africa and a specialised institution of the Common Market for Eastern and Southern Africa, said several countries across the continent already insure public assets.
She noted that this practice has significantly reduced the financial burden on governments in the aftermath of disasters and major losses.
Meanwhile, the chief accountant in the Accountant General’s department in the Ministry of Finance, Economic Development and Investment Promotion, Mr Wellington Havadi, acknowledged the importance of insurance as an effective risk-transfer mechanism for the Government.
“Repairs and maintenance costs following damage to public assets are often very high for the government compared to insurance costs,” he said.
He cited the financial impact of Cyclone Idai in Chimanimani in 2019 as a clear example of the fiscal pressure the state can face in the absence of insurance coverage.
Mr Havadi pledged the Government’s commitment to carefully consider the various options presented by the insurance sector on how best to structure an effective public asset insurance framework.
The meeting forms part of broader efforts to operationalise provisions of NDS2 by strengthening collaboration between the Government, regulators and the insurance industry.
Stakeholders agreed that a co-ordinated national approach to insuring public assets would enhance fiscal resilience, protect national investments and contribute to sustainable economic development.
As a concrete outcome of the engagement, participants resolved to establish a multi-stakeholder working group comprising Ipec, the Ministry of Finance and the insurance sector.
“The (working) group will be tasked with driving the implementation of public asset insurance in line with the provisions of NDS2,” said Dr Muradzikwa.
She noted that the initiative marks an important step towards embedding risk management and insurance into public financial planning, ensuring that development gains are safeguarded against future shocks.-herald
