By Alois Vinga
THE latest data from the Insurance and Pensions Commission (IPEC) shows that Zimbabweans respect funeral insurance products whose uptake continues to be way much higher than health insurance.
The data shows that up to December 2022, higher volumes of business were recorded in the Funeral Insurance segment compared to other products.
Based on inflation-adjusted figures, GPW increased by 7% from ZW$16,5 billion for the year ended 31 December 2021 to ZW$17,7 billion for the period under review with the positive real growth being attributable to premiums adjustments in response to inflation developments as opposed to new business
“In terms of business composition, 76% of the total Gross Premium Written (GPW) was generated from Funeral Assurance business which has become the mainstay of the sector.
“Traditional Life Assurance products, which include term assurance, endowment policies, pure endowment and whole life, accounted for a small proportion (10%) of business generated by Life Assurers,” the IPEC report said.
The regulator also revealed that the main drivers of growth in GPW were the Funeral assurance and Group Life Assurance business, which contributed 90% of the total premium
The insurance regulator observed that traditional Life Assurance products are not performing well due to limited market confidence which remains very low in the sector.
In life assurance, recurring business contributed about 88% of the GPW with new business generating just 12, 1%.
In the funeral assurance sector, new business premiums increased by 397 % from ZW$29.07 million in 2021 to ZW$144.48 million in 2022 indicating an increase in the uptake of funeral assurance policies by the insured public.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
