malvernmugadzikwa
Business Reporter
AFC Insurance says it is targeting to grow market share beyond the five percent achieved in its first year through inclusive products that are priced very low for the bottom of the pyramid customers.
The insurance company started operations in 2022 after being granted a licence by the Insurance and Pensions Commission.
AFC Insurance managing director, Cuthbert Masukume, in an interview during an insurance index payout event recently said the company has been aggressive in terms of inclusive products that are priced very low for the bottom of the pyramid customers.
“In terms of market share, last year we closed at 5 percent market share as AFC insurance and it’s largely driven by agriculture insurance products.
“So, we continue to push around that agriculture value chain. We are not only focusing on crops but we are also looking at horticulture, livestock and fisheries,” he said.
He added: “So we are getting into those spaces and as well just trying to make sure that we do not leave anyone behind from an insurance perspective.”
AFC Insurance is part of the insurance industry players who through collaborative efforts are exploring ways to advance the agricultural index insurance agenda.
The agricultural index insurance objective is to protect Zimbabwe’s smallholder farmers from climate-related risks and build resilience among smallholder farmers, ensuring food security and contributing to Zimbabwe’s overall economic stability.
They developed an agricultural insurance index product dubbed the Farmers’ Basket, which aims to protect smallholder farmers against early and late dry spells and multiple production risks, which can lead to a significant reduction in yield.
They conducted a pilot project for the 2023–2024 agricultural season (15 November to 31 December 2024) and ended at harvest (15 March 2024).
About 4, 014 smallholder farmers from 21 wards in Goromonzi District in Mashonaland East initially registered to participate in the pilot phase, but only 1, 800 farmers paid the requisite premiums of US$15 and received their payouts of US$65.
Masukume, said the beneficiaries expressed relief in terms of financial resources to go back to the fields and resuscitate.
“With the success registered on the Goromonzi pilot project, ICZ is now working on providing the product to smallholder farmers in other districts across the country,” he said.
He noted that in the short term, all Mashonaland provinces are areas of focus, but also across the country, looking at drier regions where the farmers are worried about their livestock.
Bongani Ndlovu