More in preference of US$ insurance policies

Ellen Mlambo

MASVINGO – There is growing demand for US$ denominated insurance policies in the country as spiraling inflation threatens insured values of properties.

Inflation has taken a knock on the attractiveness of insurances with just 34% of Zimbabweans holding some form of insurance, said the Commissioner for Insurance and Pensions Commission (IPEC), Grace Muradzikwa during an address to journalists from media houses across the country.

The journalists are attending a series of online workshops in a Pensions mentorship programme which is also supported by NSSA.

“The Insurance sector is currently experiencing a very high demand for US$ policies and the demand speaks to product relevance and low confidence level that the Insurance industry is facing.

“Because of this we are on an almost daily basis having to review and assess applications for US$ policies,” she said.

Muradzikwa said that of the 34% insured, 76% were funeral insurances which is not only a sign of confidence in funeral policies but proof of growth in that sub-sector.

“There is low uptake of insurance products and a recent baseline survey conducted revealed that only 34 percent of Zimbabweans have some sort of insurance in which 76 percent are in respect of funeral assurance policies.

The growth in funeral assurance policies is attributable to the benefits associated with the policy.

“Funeral Assurance policies are defined benefit policies where one knows that they will die and get buried. Funeral Assurance policies have been able to make good of their policies and this is why we continue to see growth in funeral assurance policies,” said Muradzikwa.

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