The ManicaPost
Tendai Gukutikwa
Post Reporter
TO address the challenge of declining trust and credibility within the insurance sector, the Insurance Council of Zimbabwe (ICZ) is working towards enhancing the regulatory framework governing the industry.
The insurance industry in Zimbabwe has for a long time been facing a depletion of confidence, with many losing trust in insurance companies due to a number of factors.
In a recent interview, an ICZ official, Ms Benedict Marinda said the council has been enhancing customer education and awareness, offering innovative and affordable products, and adopting digital technologies to improve efficiency and convenience, among other things.
She said among the initiatives, policies are being reviewed to ensure that they are shielded from value erosion.
“As ICZ, our members are frequently reviewing policies to ensure that the sum insured remains adequate to cover potential losses. Our members also offer the option to take up foreign currency based policies.
“We also have a strict code of conduct which includes treating customers fairly in pricing policies and payment of claims,” she said.
Ms Marinda said the council encourages people to insure their assets.
“It is imperative for property owners to identify risks that might befall their assets and take measures to mitigate such risks and losses.
“We encourage people to insure their assets so that they have peace of mind while knowing that should anything happen, it will not disrupt their way of life or source of income,” she said.
Four families in Westlea, Mutare, were recently left counting huge losses after the house they were staying in was razed down by fire.
In an interview, the house owner, Ms Yeukai Maredzo said she and her three tenants lost everything in the blaze.
A month later, Ms Maredzo is still homeless and is still pondering on how to rebuild her beautiful home since the property was not insured.
“We are yet to get proper accommodation. Our house was not insured, so we have to renovate it ourselves, and it will take us years to do so as it also took us many years to build it,” she said.
She said they had not insured the house because due to lack of confidence in the insurance industry.
Prior to the Westlea fire, this publication had reported on more than five other house fires that took place in Mutare during the first half of the year.
All houses were not insured.
Another property owner whose Chikanga house was burnt and reduced to a shell, Mr Leonard Matere, said he had not insured his house out of ignorance.
His 71-year-old mother died in the inferno.
“The only thing that we recovered was our car because neighbours managed to lift it and carry it a few metres away, but we lost everything, including my mother who was sleeping in the house.
“We are appealing to well-wishers to help us with building materials so that we can rebuild our house,” he said.
Had the property owners insured their assets, Ms Marinda said their insurance companies would have chipped in to reinstate them to their original state.
She said fire incidences are some of the risks that can financially cripple victims, especially in instances where the said properties also serve as income sources or family homes.
At around 1,5 percent, the insurance penetration rate in Zimbabwe is one of the lowest in the region, according to the ICZ.
This means that only a small fraction of the population has access to insurance products that can protect them from unforeseen risks and shocks.
Given its mandate to protect policyholders and pension scheme members, IPEC issued guidelines on how to handle revaluation gains in 2019.
This led to better pensions and insurance benefits across the board.
This, according to IPEC’s actuarial director, Mr Robson Mtangadura, helped build confidence and trust in the insurance industry.
“We have ensured fair and equitable treatment of insurance policy holders and pension fund members. We have also set standards to be adhered to by the industry on treatment of revaluation gains, among other things,” he said.
