adminASSETS in the life insurance industry have grown by 68 percent to $2, 52 billion in the past four years to 2017 on the back of a bull run experienced last year.
Figures from the Insurance and Pension Commission show that between 2013 and 2015, total assets for the industry remained flat at an average $1,6 billion.
Growth was experienced in 2017 where assets jumped 48 percent to $2,52 billion compared to $1,7 billion recorded in the prior year.
Speaking at the ZimSelector Insurance journalists mentoring programme in Harare, IPEC pensions manager, Mr Nhau Chivingira said despite the positive growth, the sector still faces a number of challenges with penetration still at 3,5 percent for the life insurance industry.
Low confidence, financial illiteracy and low disposable incomes are some of the challenges affecting the industry.
The inflationary legacy issues prior to dollarisation added to the woes the sector faces, as consumers lost their investments at transition from Zim dollar to multi-currency system.
“Insurance is not a priority for many households,” he said.
Today, the sector is dominated by funeral policies while uptake of other products remains low. Also presenting, Zimnat Life’s Elizabeth Rabvukwa highlighted the importance of the insurance industry to economic growth.
She outlined several options for potential investors, emphasising on individual life products ranging from whole life plan to term policies.
The industry currently has 27 players. Of these, 11 are life assurers, nine funeral assurers, two composite insurers and two composite reinsurers. – BH24
Online Reporter