Online Reporter
Nelson Gahadza
The Insurance and Pensions Commission of Zimbabwe (Ipec) has said that it recognises that the regulatory environment must evolve in step with the latest technologies shaping the industry.
The industry regulator highlighted this at the Insurance Council of Zimbabwe (ICZ) research and awards ceremony held on Wednesday.
ICZ commissioned the research competition 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”.
Ipec’s manager, pensions, Mary Takavarasha, who was the guest of honour, said the commission’s introduction of regulatory sandboxes 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.
“Today’s research findings must now feed into three strategic priorities that include policy frameworks, which involve developing AI governance guidelines for transparency and ethics.
“Capacity building: Upskill regulators and insurers to audit algorithmic decision-making.
“Collaborative pilots: Partnering with ICZ to implement scalable AI solutions, starting with high-impact areas like fraud prevention,” she said.
She added that, “As we celebrate the winning papers and innovative ideas that have emerged through this competition, I encourage all stakeholders — regulators, insurers, technologists, and researchers — to leverage these insights to enhance product development, operational efficiency, and policy formulation.”
Ms Takavarasha said the research underscored a pivotal truth that AI and machine learning were not mere buzzwords but transformative tools reshaping insurance operations.
“From claims processing automation to dynamic risk pricing and fraud detection, these technologies are driving efficiency in reducing operational costs by up to 30 percent in early-adopter markets, according to McKinsey, 2023 inclusivity.
“Enabling microinsurance products tailored to informal sectors through mobile platforms and resilience-enhancing climate-risk modelling for agriculture insurance is a critical need for Zimbabwe,” she said.
“But let us be clear, disruption is inevitable. The question is whether we will lead it or react to it. In a world where digital innovation is redefining risk, behaviour, and value chains, it is vital that we invest not just in technology but in the intellectual infrastructure that will guide its application.
“This research platform represents a critical step in shaping an industry that is agile, inclusive, and resilient.”
ICZ chairman Mr David Nyabadza said 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 to use 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.
According to Ms Takavarasha, the future of Zimbabwe’s insurance industry will not be built on legacy alone, but will be shaped by bold decisions, evidence-based strategies, and the courage to adapt.
“Ipec remains committed to working with the industry, through ICZ and other platforms, to support the evolution of an insurance ecosystem that is digitally empowered, ESG-aligned, and prepared for the risks of tomorrow,” she said.
However, of the top three finalists, Augustine Mupeti, a student from the University of Zimbabwe, was the overall winner, Courage Gomera was the second runner-up, and Varaidzo Maribha came third.
