Why it makes economic sense to insure your assets

production with much needed inputs.
It has also been reported that bank deposits are not as large as they should be to sustain borrowing at low interest rates.
The bottom line is that our society is driven by an appetite for consumer spending on cars, houses and food with very little going for banking or to the insurance industry. There is nothing wrong in spending money on cars and houses. But the problem is that these assets are not adequately insured.
It has been also reported that there are nearly two million cars on our roads including those owned by the Government. This makes Zimbabwe one of the most developed countries in terms of resources available per capita of five people to every car. But are these cars adequately insured?
One insurance expert says that Zimbabwe suffers from under insured disease for its assets. Many are happy to waste money on non-essentials instead of insuring their assets.
For example, any car which is less than three years should attract comprehensive insurance rather than third party insurance. This requirement would mobilse a lot of money for the insurance industry. This money would find its way into the economy either as loans through banks or direct investment.
Another area, which has been neglected, is that of insurance on houses. It is estimated that only 10 percent of houses are insured throughout the country.
Imagine the amount of money that could be mobilised if just 60 percent of houses were insured.
It should be a requirement by local authorities that to access water and electricity, the property should be insured.
A number of businesses are not insured. In many countries insurance cover has been extended to even footballers, performing artists etc.
No country can make any progress unless it can mobilise its financial resources through the insurance industry. The catchphrase in politics now is to provide jobs and employment for the young generation.
The insurance industry could be the answer to mobilse financial resources for companies in manufacturing and farmers who provide the primary products.
If the insurance industry gets together with banks to channel these funds to the economy, the country would solve most of its economic problems and wait for external loans, which may not be forthcoming.
It may be an idea, which can be pursued to persuade the Diaspora to put their money into the insurance industry at profitable rates.
As long as there are assets to be insured, the insurance industry could be the safest long-term investment.
It would be an innovation if money into the insurance industry could be regarded as shares by those who would have insured their assets as long as they do not make a claim for a number of years.
The insurance industry could play a major role in sustaining the growth of this country’s economy.
Many people are looking for a return from the deposits at the banks, which have yielded nothing. The insurance industry is the best guarantee for such a return on investment.
People must be educated to the value of putting money into the insurance industry.