Online Reporter
Nelson Gahadza
ZIMBABWE’S pensions and insurance regulator, the Insurance and Pensions Commission of Zimbabwe (Ipec), has taken a proactive approach to fostering innovation in the industry while ensuring consumer protection.
By adopting a facilitative regulatory framework, the regulator is enabling industry players to develop and test new products and services through piloting new products.
“One notable example is the ‘Farmers Basket’ insurance product, which was piloted in Goromonzi and has since been rolled out nationwide.
“This innovative product demonstrates the regulator’s willingness to work with industry players to bring new ideas to the market,” said Mrs Mary Takavarasha, Ipec manager of pensions.
She said this at the Insurance Council of Zimbabwe (ICZ) research awards ceremony last week whereby the top finalists were honoured after presenting their research papers.
The research competition was themed: “The Implications of Artificial Intelligence (AI) and Machine Learning (ML) in Transforming Insurance Operations and Products and How the Industry Should Position for Innovation Disruptions”.
She noted that the introduction of regulatory sandboxes also reflects a deliberate shift from being gatekeepers to enablers of innovation.
“These sandboxes allow insurers to test AI-driven products in controlled environments, ensuring consumer protection without stifling progress,” she said.
Mrs Takavarasha said while encouraging innovation, the regulator remains committed to protecting consumers.
“We are looking at issues to do with affordability, treating customers fairly, ethics and transparency. The regulator closely monitors new products and services to ensure that consumers are not prejudiced,” she said.
However, the regulator recognised the need to stay ahead of the curve and is working on developing a regulatory framework for emerging technologies, including artificial intelligence (AI) in insurance.
Mrs Takavarasha said this forward-thinking approach will enable the regulator to address potential challenges and opportunities presented by these technologies.
Analysts contend that the regulator’s approach is expected to have a positive impact on the insurance industry in Zimbabwe, enabling innovation while protecting consumers.
“By striking a balance between innovation and protection, the regulator is creating an environment that fosters growth and development in the industry,” said Mr Terrence Mafu, an economist.
He added that the regulator’s commitment to consumer protection is also expected to boost consumer confidence in the insurance industry.
“By ensuring that new products and services are fair, transparent and affordable, the regulator is helping to build trust between consumers and industry players,” Mr Mafu noted.
Mrs Taruvinga further highlighted that as the insurance industry continues to evolve, the regulator remains committed to finding innovative solutions to emerging challenges.
“By working closely with industry players and adapting to the changing landscape, the regulator is well-positioned to support the growth and development of the industry while protecting consumers,” she said.
According to ICZ chairman Mr David Nyabadza, insurers are looking into the future and realise that the future is digital.
“We needed to bring some excitement so that we can have some research that we can use that can stimulate us using these tools as an industry.
“We realise that as individual companies they may not have the capacity to actually fund these on their own, but when we come together, we can then get that research and then we can use it for the benefit of the whole industry,” he said.
Mr Nyabadza said the research presentations showed the state of the industry in terms of AI and machine learning.
“The gaps that are there and some of the proposals and suggestions that came from the research are some that we can carry on.
“We had one of the winning presentations, which is really a breakthrough after developing an algorithm that can be developed further to deal with some of the processes that we deal with in the insurance industry.
“It is a start, and now we can fund them to develop it even further,” he said.
Overall, while Zimbabwe’s insurance industry recognises the potential benefits of AI, it still faces significant challenges that need to be addressed to ensure successful adoption.
