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lost their contributions due to hyperinflation and the adoption of the multi-currency system in 2009.
The call was made by Vice President Joice Mujuru in a speech read on her behalf by the Minister of State in her office, Sylvester Nguni, at the official opening of the Insurance Institute of Zimbabwe annual congress in Bulawayo yesterday.
She said the industry needed to come up with a well-thought-out strategy and aggressive public awareness programmes to revamp itself.
“I am aware that thousands of Zimbabweans still feel aggrieved with regards to their policies that were rendered valueless by the inflation of 2007-2008.
“Thus, I want to urge the insurance sector to do more in terms of changing public perception about insurance. Does the public know about the benefits of insurance, what a policy is and what its terms are?” she said.
A viable insurance industry was critical to mitigate the current liquidity crisis in the country.
“According to the latest CZI manufacturing sector survey, one of the greatest challenges the manufacturing sector faces is lack of liquidity.
“You will find that the industry, since financial institutions lend money on the basis of collateral usually provided by the insurance sector, one can safely say the insurance industry is part of the solution to the liquidity crisis that our industry is facing,” she said.
VP Mujuru also called on the industry to play an integral part in the economic revival process by being innovative in its approach to business.
“Our economy is on a recovery path and your industry is an integral part of that recovery process. My challenge for you today is to remove the strait-jacket and think outside the box, or even away from the box.
“Mobilise resources and let them be available for economic development,” she said.
The insurance sector needed to take advantage of the diversity in the country’s industrial base to increase underwriting capacity.
Providing insurance to the agriculture sector could help ignite a hive of activity across the economy.
“This, I believe, also generates more business for the insurance sector because as more assets and wealth are created in the agricultural sector the more that security and protection is needed.
“Hence, the farming operations in the era of land reform calls for serious consideration and attention by the insurance industry,” she said.
She appealed for the industry to come up with packages suited for the rural folk who constitute a huge proportion of the country’s population.
VP Mujuru applauded the insurance sector for working towards meeting the indigenisation and empowerment programme.
“Unhu, ubuntu should be your principle,” she said. “Aim to be transparent, ethical and responsible in order to be an industry of repute.”
IIZ president Mr Simon Chapereka told the meeting that the time had come for the industry to take its rightful place among the key sectors in the country that have the potential to raise money for national development.
He said the recent partnering of the industry with Government on the Housing Fund was ample proof of the industry’s potential of being a major player in national development. “We need to continue applying ourselves and stop playing second fiddle to other sectors, when it involves national development,” he said.
The head of the IIZ public relations committee, Ms Ruth Ncube, said the choice of their theme was premised on the fact that the insurance industry should have strong traits as a diamond, which “is timeless, precious, not fragile but robust”.
She said like the diamond, the insurance industry had been robust in weathering the economic storm of the past decade and should continue to be robust going forward.
The IIZ conference is the main highlight of the annual insurance calendar, as it bring together insurance personnel from across the country to interact and discuss issues affecting the industry.
Online Reporter