Emulate China and India, insurers urged

in mindset, KM Financial Solutions chief executive,Mr Kenias Mafukidze has said.
Addressing delegates during the Insurance Institute of Zimbabwe’s summer school, Mr Mafukidze said to achieve the US$1 billion mark, the industry has to tackle some of the threats that it is facing.
These include restoring ethics that had been eroded during the past 10 years that the country was in recession, a situation that also triggered skills flight and leakages in terms of premiums.
In addition, he said that there are some practices that were adopted during the past 10 years that no longer have a place in the present environment.
“During the past 10 years the hyperinflationary environment had taught us to plan for the next 24 hours but now need to have a vision and plan ahead,” he said.
Mr Mafukidze said it was also critical for insurance practitioners not remain steeped in the past but start being innovative in order to grow their business and to take advantage of the envisaged growth.
“The manufacturing industry is collapsing at the moment because of the temptation to continue doing what they have been doing 10 years ago but that is no longer viable,” he said.
To this end, he said there is need for insurance companies to look at global trends in order to create underwriting potential and increase their clientele base.
“A lot of executives spend most of their time in boardrooms talking about issues that they have no control over such as politics and elections yet they are supposed to be concentrating on things that they have control over,” he said. In this regard, he said countries like China and India are exuding enormous economic growth potential and, as such, the local insurance industry should be abreast with the way the these countries are driving their economies.
“At the moment the Chinese are the only foreign nationals that are not crying about indigenisation; this is an opportunity for the local industry,” he said.
He also added that there was need to get out and start creating products that are targeted at the untapped markets such as the informal sector as well as the formal sector, agriculture in particular.
“In terms of tobacco there is a tendency for people to wait for action at the tobacco auction floors yet there is a lot that is happening out there at the farms. Why not create products for the new players in the industry?” he asked.
He said there was also untapped potential in areas such as mining, ICT and the indigenisation process.
In order to maximise on these opportunities, he said there was need to address the issue of trust.
“The moment a client trusts you, there is very little need to aggressively market your products because they know you.
“The moment Apple produces the latest version of an iPad people will queue overnight to buy the product. Even in instances where they are not aware of what the device looks like or what it does, they trust that it’s a good product because it is coming from a trusted source,” he said. Mr Mafukidze said there was need to value-add by coming up with products that offer solutions to problems that are being faced by clients
He also said there is need for executives to invest in clever junior executives who bring in new ideas and have the zeal to drive the companies beyond their existence.
Speaking during the same occasion, IIZ president Mr Simon Chapereka urged delegates to continuously seek to upgrade themselves and to make use of the educational programme being offered by the institute.
“Everywhere you go, be it Tanzania, Angola or Kenya you need to have the requisite qualification to make it,” he said.
He commended the industry for fully subscribing to IIZ activities, which he said, was an indication of companies and individuals’ quest zeal to get knowledge.
Mrs Eldrette Shereni, who spoke about the marketing of insurance products and services, said insurers should not be overly concerned with selling their products at the expense of the welfare of their clients.
She said that there was need to adopt total marketing that also entails after sales attention.
“Most of the time there is a tendency to sell the policy and to get the commission and once we line our pockets we forget about the client.
“It is important to keep constantly in touch with your clients and ensure that they get what you promised them,” she said.
This. she said, was critical in attracting new business, as satisfied clients tend to refer other people to buy the product if they are satisfied.
She also emphasised the need to guard against over-promising and under-delivering on those promises.
The three-day IIZ summer school is being held under the theme “Raising the Bar . . . A Journey to Excellence”.