Fidelity Life launches new scheme

Business Reporter
FIDELITY Life Assurance has launched a joint medical aid-funeral cover called Fifelity Life Medicover.

Fidelity Life general manager (marketing) Mrs Melanie Gumbo told The Sunday Mail Business that the new scheme – available to all funeral policyholders – would give access to free prescription drugs for clients of Fidelity Life Medical Aid Society.

“This product was created as a direct response to market needs that show that the majority of Zimbabweans do not have access to medical insurance,” said Mrs Gumbo. “The medication bill can be a bitter pill to swallow and this is an innovative way to use the group’s synergies by offering our customers a free prescription drug cover with each funeral policy.”

Under the scheme, a policyholder issued with a prescription while covered by Flimas will get free medication.

Mrs Gumbo said Fidelity Life was “one of the first on the market to offer a micro-insurance type product”, in line with the micro-insurance framework recently launched by the Insurance and Pensions Commission to assist marginalised groups.

Fidelity Life hopes revamping the company’s portfolio will augment revenues and spread risk in a market where its anchor business – insurance – is underperforming.

In 2016, its insurance units in Zimbabwe and Malawi took a hit.

While premium income for the local life assurance subsidiary declined eight percent to US$12,4 million from US$13,5 million a year earlier, the Malawian unit – Vanguard Life Assurance – fell 24 percent to US$2,5 million from US$3,1 million in 2015. It was the same for the asset management business which recorded a loss of US$190 000 due to fair value adjustments to its property portfolio. The microfinance unit bucked the downtrend, posting a profit of US$1 million from US$380 000 over the same period a year earlier.

Fidelity Life ventured into insurance in 2005 when it acquired Fidelity Life Medical Services Company, while Fidelity Funeral Assurance opened a year later. The firm also has interests in life assurance, employee benefits, asset management, actuarial services and property development.