Online Reporter
Business Reporter
THE local insurance and pensions sector posted solid first-half gains in 2025, with revenues, assets and compliance rates all climbing, signalling growing confidence in the country’s long-term financial instruments.
Gross premium income rose to ZiG288,5 million, up by 13,9 percent from ZiG253,3 million a year earlier, driven by stable inflation, predictable exchange rates and an expanding product base. Pension industry assets grew to ZiG322,7 million, a 14 percent increase year-on-year, bolstered by capital market gains and property investments.
“When revenues rise in this manner, it shows people believe their money will hold value,” said Ms Gladys Shumbambiri-Mutsopotsi, an economist.
“This is not just about selling more policies; it is a structural vote of confidence.”
The industry’s compliance with statutory-prescribed asset thresholds reached 93 percent, comfortably above the 80 percent minimum. Regulators credit tighter enforcement and a shift towards infrastructure and energy-linked investments approved by the Insurance and Pensions Commission (IPEC).Ms Shumbambiri-Mutsopotsi said the figures showed the sector’s integration into national development priorities.
“These are not idle investments. They are directly funding roads, power projects and public facilities,” she said. The Government confirmed progress on the long-delayed pre-2009 insurance and pensions compensation programme, which aims to reimburse policyholders who lost savings during the hyperinflation era. Initial payouts have been made, with more scheduled before year-end.
Dr Shepherd Nyakonda, a senior insurance executive, called it a cornerstone for rebuilding trust. “Every payout sends a message to both citizens and investors that Zimbabwe honours its obligations,” he said.
Micro-insurance uptake accelerated, particularly in rural and peri-urban areas. Zimbabwe’s flagship Farmers Basket Insurance now covers over 65 000 smallholder farmers against drought and crop failure, while participation in the African Risk Capacity drought scheme secured US$30 million in cover.
Dr Nyakonda said these innovations aligned commercial incentives with social outcomes.
“Farmers sleep better knowing they’re covered, and insurers open entirely new premium streams,” he said.
Insurance penetration is feeding into Zimbabwe’s broader financial inclusion drive, with more than 6,9 million adults now holding transactional accounts, representing over 88 percent of the adult population.
Credit registry inquiries hit record highs as insurers adopt data-driven underwriting to reach previously excluded customers.
Ms Shumbambiri-Mutsopotsi noted that insured households have better economic shock absorbers. “Insurance does not just protect assets; it empowers risk-taking in business and farming,” she said.
Pension funds are diversifying aggressively, increasing allocations to equities, commercial real estate and renewable energy projects. The Government said this positioned pensions as active participants in economic transformation, aligning with Vision 2030.
Dr Nyakonda agreed, saying: “When pension money builds solar farms or toll roads, it stops being passive capital and becomes an engine of growth.”
The mid-term review frames the sector as a stabilising force in Zimbabwe’s macroeconomic architecture, with dual roles — protecting households and mobilising capital for national projects.
The Government narrative is clear: Insurance and pensions are no longer just financial products; they are instruments of economic sovereignty. Ms Shumbambiri-Mutsopotsi summed up the strategic message: “A strong insurance and pensions sector is the quiet engine of an economy. Zimbabwe is making sure that engine runs without fail.”
According to Dr Nyakonda, “If macro stability holds, we could see double-digit premium growth again in 2026, and that is a story both policyholders and investors want to hear.”
Bongani Ndlovu