R&D vital for growth of insurance industry

Online Reporter

CONTINUED research and development (R&D) is vital to the growth of Zimbabwe’s insurance industry.

This was said by Insurance Council of Zimbabwe (ICZ) chairman, Mr Patrick Kusikwenyu, during the ICZ 2021 Research and Development Awards ceremony on Friday.

“Just like any other business, the development and growth of the insurance business is based on finding opportunities and identifying solutions to challenges through research,” he said.

“Most, if not all, business activities begin with fact finding mission done through various methods.”

Mr Kusikwenyu encouraged players in the industry to make use of the research findings and recommendations.

“This will stimulate continued relevance for insurance to the consumers and the whole trade and economic value chain.

“Timeous implementation of recommendations and identified opportunities will also assist in influencing policies and regulations aimed at creating a conducive operating environment and pave way for increased participation in the growth of the national economy.”

Guest of honor at the event, Insurance and Pensions Commission (IPEC) Commissioner, Dr Grace Muradzikwa, however cautioned insurance players against worsening information asymmetry between the businesses and their customers through the use of convoluted products.

“One of the major concerns that has been raised against innovation in the insurance sector is that it exposes consumers to abusive practices by unethical insurers given the information asymmetry that exists between insurers and consumers.

“Indeed, as the regulator, we have handled complaints filed by consumers where they felt they had been unfairly treated because of the nature of the policies that they signed up for on their mobile phones,” said Dr Muradzikwa.

“Let me categorically state that while as the regulator, we do promote innovation, we will not condone abusive practices against consumers where insurers use their innovation to unfairly treat their consumers.”