THE Insurance and Pensions Commission (Ipec) has urged industry players to be innovative and introduce products that meet the evolving needs of the untapped market.
Speaking at the fourth insurance and pensions media awards ceremony in Harare last week, Ipec board chairperson Albert Nduna said that the introduction of innovative products would deepen financial inclusion.
“In an era characterised by rapid advancements in ICTs [information and communication technologies] and the accelerated evolution of fintech and techfin platforms, I urge the industry to be innovative and come up with insurance and retirement savings products that meet the evolving needs of the previously excluded in terms of accessibility, affordability and usage to deepen financial inclusion,” he said.
“The insurance and pensions industry plays a crucial role in economic development by providing financial protection, promoting long-term savings and investment, and supporting overall economic stability and growth.
“I wish to acknowledge the industry’s contribution to this endeavour through investments in prescribed assets, which amounted to about ZWL$1, 5 trillion as at December 31, 2023. I urge the entities that did not meet the minimum prescribed thresholds to comply with the statutory requirement as these are projects of national importance.”
Nduna noted that the insurance and pensions industry had faced various challenges, but “we should not let the past challenges hold us back from looking ahead with optimism and determination”.
The sector should also prioritise fair treatment of policyholders and pension scheme members in line with the treating customers fairly framework, he said.
Treating customers fairly, according to Nduna, should be a deliberate organisational policy, which is essential for building trust and upholding ethical standards instead of being a compliance issue.
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“One of the low-hanging fruits in restoring confidence in pensions in Zimbabwe is the compensation of pension scheme members for the pre-2009 losses as per the compensation regulations gazetted last year,” he said.
Nduna said financial inclusion was key in promoting inclusive and sustainable growth by providing access to financial services for the previously excluded, thereby allowing them to engage in gainful economic activity.
“Ipec has pursued this objective with vigour, evidenced by the formulation and issuance of micro-insurance and micro-pensions frameworks in 2017 and 2023, respectively. As a result, it has licensed 11 dedicated micro-insurance companies since 2017, some of which are already operational.”
The industry regulator is also approving micro-insurance and micro-pensions products offered by conventional insurance companies.
Some of the micro-insurance and micro-pensions products that have been approved include crop insurance, livestock insurance, women insurance, hospital cash plan, savings plan and provident funds.
