The Sunday News
Dickson Mangena, Business Reporter
FUNERAL assurers experienced a surge of two percent in premiums in the first half of the year.
According to a funeral industry report released by the Insurance and Pensions Commission (IPEC) last week funeral companies registered with the organisation recorded a net premium of $18,7 million this year compared to $18,3 million over the same period last year.
Eight funeral assurers namely Cell, Doves, First Funeral, Foundation, Moonlight, Passion, Ruvimbo, Sunset Vineyard are registered with IPEC.
“For the half year under review, the industry wrote $18,7 million in gross premiums resulting in a negligible retention ratio.
We continue to encourage players to spread risk via re-insurance as this will increase their underwriting capacity both financially and technical.
“For the current reporting period, the top three funeral assurers wrote 90 percent or $16,8 million of net business compared to June 2015 where it was 86 percent or $15,9million. The remaining players shared 10 percent or $1,8 million business,” read part of the report.
The market share by net premiums was dominated by the top three funeral assurers namely Doves, First Funeral and Moonlight.
“For the current reporting period, the top three funeral assurers wrote 90 percent or $16,8 million of net business compared to June 2015 where it was 86 percent or $15,9 million. The remaining players shared 10 percent or $1,8 million business,” read part of the report.
Further stating that: “individual life business constituted 44 percent or $8,2 million of the total business underwritten while the balance of 56 percent or $ 10,4 million was corporate business, compared to June 2015 in which individual life constituted 48 percent or $8,8 million and corporate business was 52 percent or $9,5 million”.
The report states that the industry continues to show signs of viability albeit some challenges relating to premium debtors, capitalisation as well as compliancy to prescribed paper.
