Insurance giant opens office in Zim

and short-term insurance products, namely marine, property, engineering, liabilities, motor and aviation and accident and health, will service Botswana, Swaziland and South Africa.
ZEP Re Zimbabwe regional office was recently granted authority to trade in Zimbabwe by the Insurance and Pensions Commission.
Six governments, 12 private companies, 12 national reinsurance companies and two regional organisations constitute the company. It has major shareholders such as the PTA Bank and the African Development Bank and a premier regional financial powerhouse with 15 percent shareholding.
ZEP Re Zimbabwe regional manager Mr Jephita Gwatipedza said the new firm will play a critical role in the development of the local insurance industry through training.
“This has already started and the company hosted a training seminar in reinsurance underwriting and accounting from February 27 to March 1 2012.
“We need to increase the necessary retention capacity, which will result in premiums being retained within the Comesa region,” he said.
The company was also set up to promote trade in the Comesa region.
To this extent, they are the managers of the Comesa Yellow Card, which is a motor insurance product which allows smooth movement of vehicle traffic within the Comesa area.
Mr Gwatipedza said Zimbabwe offers a key market for the reinsurance business in the region.
“Zimbabwe is an important market in Africa. In 1996 the Zimbabwe short-term insurance market was US$1,2 billion.
“In 2011 it is estimated that market income was US$170 million and in 2012 it is estimated to grow to plus or minus US$250 million.
“We see big opportunities in Zimbabwe in the areas of fire, engineering and   bonds guarantees insurance as the country starts the process of reconstruction,” he said.
Zimbabwe’s income is small compared to South Africa that contributes 1,2 percent of the world short-term insurance market income estimated at US$4,5 trillion in 2011.
Overall, Africa contributes 1,54 percent of the world insurance market income which means that South Africa alone contributes 80 percent of Africa’s income.
South Africa’s insurance income was US$53 billion.
Historically, Zimbabwe used to be bigger than most African markets.
“ZEP Re wants to help in the rebuilding of the country through the provision of reinsurance capacity and obviously help Zimbabwe regain its premier status in the African insurance market,” added Mr Gwatipedza.
The company is looking to become a fully-fledged member of the Insurance Council of Zimbabwe and Zimbabwe Association of Reinsurance Offices.