Online Reporter
Nelson Gahadza
Zimpapers Business Hub
Growing mobile phone penetration rates are reshaping the insurance landscape in Southern Africa, presenting both an opportunity and a challenge for insurers seeking to diversify and modernise their operations.
Lindah Mariwande, general manager at Old Mutual Life Assurance Company, told delegates at the Southern Africa Insurance Indaba in Victoria Falls yesterday that insurers must recognise that advertising is also a mobile-based market.
“The bulk of our customers really are mobile, and if you look at mobile penetration, sometimes the number of users is equal to the number of people in that country; hence, there is a nice opportunity.”
She warned, however, that capitalising on this shift requires deep internal transformation.
Zimbabwe’s mobile penetration rate, according to the Postal and Telecommunications Regulatory Authority’s sector performance report for the fourth quarter of 2024, passed the 100 percent mark, as active mobile lines surged.
Ms Mariwande, presenting on Strategic Leadership for Resilient Insurance in Africa, emphasised behavioural diversification, organisational readiness and the need for businesses to align their plans and operational culture with emerging digital realities.
“As you seek product diversification and digital and mobile distribution diversification, insurers must evaluate whether their physical data still serves strategic decision-making,” she said.
She urged insurers to appreciate the long-term implications of data-driven decision-making and see how much it is going to make and inform people’s daily life and future decisions.
Ms Mariwande said that despite the strong case for long-term digital transformation, the strain insurers face in balancing strategy with immediate financial pressures was a significant issue.
The Southern Africa Insurance Indaba brought together executives, regulators and technology leaders to discuss industry trends as insurers confront economic volatility, shifting customer behaviour and rapid digital change.
Dr Monday Utomwen, assistant director and group head of enterprise risk management and compliance at Waica Reinsurance Corporation, in his presentation, said Africa’s green finance requires targeted reforms to boost liquidity, investor diversity, regulation and market integration.
“Enhance market liquidity via active market-making, development of repo markets and establishing robust primary dealer systems. There is also a need to broaden the investor base by attracting pension funds, insurers and retail investors through targeted incentives,” he said.
Dr Utomweni added that simplifying regulatory frameworks will encourage product innovation in green bonds and structured products.
