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Leonard Ncube, Victoria Falls Reporter
THE insurance sector should tailor-make its products to suit the needs of the informal market, which constitute the biggest market share in the general economic activity of the country, economic experts have said.
It is estimated that about 80 percent of the country’s economy is now in the informal sector hence the calls for harnessing the informal economic activity into the mainstream economy.
Speaking on the impact of the economic environment on the Zimbabwean insurance industry at the just-ended Insurance Institute of Zimbabwe (IIZ) 2022 annual conference in Victoria Falls, Professor Gift Mugano, said the country faces serious risks, which can be overturned by grabbing opportunities that are in the informal sector.
“We need to have a proper dialogue on how to create business and we should use the insurance sector as a key enabler for economic development,” he said.
“You need to think of how to harness the 80 percent of the economy, which is in the informal market.
“You are remaining with 20 percent and you need to work on how to craft your products for the informal sector.”
Prof Mugano said capacity utilisation in the country’s industry is expected to remain subdued based on predictions by the Confederation of Zimbabwe Industries while borrowing is also going down in financial institutions, hence the need to restore confidence.
He called on Zimbabweans to be peaceful in the run-up to the harmonised elections next year saying a peaceful election will be less risky for the economy while violence scares away investors and opportunities.
Nigerian insurance expert and economist, Dr Yeside Oyetayo, said insurance is the infrastructural pillar of any economy.
She said Zimbabwe is among the countries with the highest penetration of insurance, which should be leveraged on.
“Insurance impacts on the economy and the Zimbabwean insurance industry has the potential to impact on the economy,” she said.
The conference was the first physical event after a three-year break caused by Covid-19. It coincided with the institute’s 40th anniversary following its establishment in 1982.
The theme for the conference was: “Resilience! Opportunity! Growth – Driving Insurance Forward.”
IIZ president Mr Pangani Sanangurai said the insurance sector faces challenges emanating from the prevailing economic conditions.
The organisation’s general manager, Mr George Chikava called for resilience and implored members to take growth opportunities to drive the insurance business forward into the unforeseen future.
IIZ draws its membership from the various insurance associations in the country. – @ncubeleon
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