admin
Walter Muchinguri in Nyanga
The insurance sector should adopt dynamic mindsets in order to survive the prevailing economic climate, Insurance Institute of Zimbabwe (IIZ) president Dr Edward Gomba has said.
Dr Gomba, who opened the IIZ winter school here yesterday, said a dynamic mindset would ensure that the sector does not give up on obstacles, is very hard working, learns from criticism and celebrates when others become successful.
“The current economic environment requires flexibility, and one of the most important skills is the art of compromise and avoiding rigidity.
He said that this was even more critical now when customers are facing difficulties and have had to prioritise what they spend their money on.
“There is no escaping the fact that our clients are now more concerned with making ends meet, and as such, a low-cost simple product that delivers only essential items may be the order of the day.
“In tough times like these, the first thing to go among other so-called ‘non-essentials’, is insurance.
“For those in motor insurance you can confirm that in one term a client pays full cover for their car and in another they fail to raise the required amount and goes for third party insurance.
“Such a client would have prioritised and would have removed Insurance as part of those priorities. From the consumer’s point of view, the insurance renewal is presented by the industry as binary — you either pay or you do not pay.
Speaking at the same conference, PricewaterhouseCoopers territory senior partner, Zimbabwe and Malawi Tinashe Rwodzi warned insurance companies against taking excessive risk when dealing with agencies.
Mr Rwodzi, who spoke on distribution insights-analysing agency performance and profitability said it was critical that insurers monitor the operations of agencies especially their profitability.
“You need to understand where they came from, where they are and where they are likely to go,” he said.
The four-day IIZ winter school is being held under the theme: “Going back to basics with a dynamic new mindset in insurance”.
Online Reporter