daniel chigunwe
Business Writer
Zimbabwean insurance policy holders are unhappy with Champions Insurance Company as it topped the list of complaints held against insurers during the first quarter of 2024, due to poor service delivery.
Statistics from the regulator, the Insurance and Pensions Commission (IPEC) reveals that Champions Insurance Company accounted for 22 percent of the complaints raised against the short-term insurance industry during the quarter.
Policy holders were also disgruntled with Credsure and FBC Insurance companies that accounted for 11 percent each of the total complaints lodged against the industry during the period.
Zimnat and Nicoz accounted for 8 percent each while the trio of Econet, Evolution and Minerva accounted for 7 percent each in that order. Others accounted for a combined 19 percent.
“During the reporting period, most complaints were received against Champions Insurance Company, followed by Credsure and FBC Insurance Company with a combined percentage of 44 percent of the total complaints received during the first quarter of 2024,” said IPEC in a short-term insurance industry report for the first quarter to March 31, 2024.
During the quarter under review, IPEC received twenty-seven complaints against the short-term insurance sector. This was a 4 percent decrease from twenty-eight complaints recorded in the same period in 2023.
“Unsatisfactory service was the major source of complaints, constituting 41 percent of the complaints,” said IPEC.
According to the regulator, seventeen of the complaints that were lodged were resolved during the first quarter, and the remaining ten were carried forward to the second quarter. Another bone of contention with the industry delay in settlement and insufficient claim documents.
Meanwhile, the short term insurance industry had a mixed performance during the first quarter although the sector was generally profitable.
The sector also showed varying levels of compliance with solvency and capital requirements, indicating the need for continued regulatory oversight and support.
According to the IPEC report, the industry generated a total of $812,96 billion in consolidated insurance revenue with foreign currency business amounting to US$53,18 million.
The major drivers of the insurance revenue for the period under review were motor, fire, hail and personal accident classes of business contributing a total of 78 percent.
The report also highlights major sources of foreign-currency denominated insurance revenue for short-term insurers were motor, fire, hail and personal accident contributing a combined 79 percent of the total insurance revenue. The trend in foreign currency-denominated business is similar to ZW$ business.
Total consolidated insurance revenue by short-term reinsurers was $447,14 billion, with US$32,77 million in foreign currency business.
Microinsurers reported consolidated insurance revenue of $36,54 billion, with US$1,45 million in foreign currency business.
The report further highlighted that out of 20 insurers, seven reported negative insurance service results, indicating losses.
However, the industry made $43,65 billion in profit from insurance coverage. Out of the nine reinsurers, 56 percent or 5 reported negative insurance service results, but the industry still made $4,45 billion in profit.
Bongani Ndlovu