STATE-OWNED postal services company Zimpost expects revenue from its newly launched insurance product to reach US$5 million in the next three years, driven primarily by a strong distribution network and its partner Nicoz Diamond’s underwriting capacity.
By Melody Chikomo
Zimpost launched post insurance in partnership with Nicoz Diamond after a decade of being an insurance agent.
The new agreement will see Zimpost offering third-party motor insurance while other services which include home, comprehensive, personal accident and travel insurance are expected to be rolled out in the next few months.
The products, initially expected to be available in 210 post offices countrywide, will eventually be available in an additional 30 post offices which will start offering the services once connectivity is set up.
Zimpost ccting CE Sifundiso Moyo told businessdigest on the sidelines of the product launch that around US$300 000 was expected in terms of revenue in the first year of operations
“In terms of revenue that we are expecting to get this year we are expecting something like US$300 000 because it’s a new product but we are looking at not less than a million dollars in the coming year as we get a balance. We have a long term (view) on this product, but as you know that insurance has a lot of competition; we see ourselves stabilising at US$5 million in the coming three years.” he said.
While Nicoz Diamond has operations in neighbouring countries, Moyo said the new venture would not go that direction.
“We are a postal entity. The way we are organised is that globally we have the Universal Postal Union which is linking all the post offices of the world and we come to Africa we have the African Postal Union which coordinates activities within Africa. In the southern region we have Sapoa (Southern Africa Postal Operators’ Association). In the association, how we operate is that if we have a service that we have and want it replicated in a certain country and that the country has a postal organisation it then does it. It will not be necessary for us to go into that region in that sense but it will be sort of a partnership,” he said
Moyo said Zimpost will leverage on micro insurance services and maximise them by delivering them close to the clientele.