The Sunday News
Thandeka Matebesi, Business Reporter
THE Insurance and Pensions Commission of Zimbabwe (IPEC) has urged players in the insurance industry to fully utilise new technologies in order to tap into new markets.
In a third-quarter short-term report, IPEC said the non-life insurance industry is continuously controlled by a few companies, signifying an oligopolistic market.
“Insurance players are encouraged to maximise utilisation of new technologies in the distribution of products to tap into the unserved insurance market. Old Mutual Insurance, Zimnat Lion and Nicoz Diamond were the market leaders in terms of Gross Premium Written with a combined market share of 43,19 percent.
Old Mutual, Nicoz Diamond and Alliance were the market leaders in terms of total assets with a combined market share of 41,82 percent.
Therefore, the non-life insurance industry is continuously controlled by a few companies, signifying an oligopolistic market as was reported in the previous quarter which ended 30 June 2018,” read the report.
The insurance commission also revealed that the number of people who registered for non-life insurance in the first nine months of 2018 had increased by 51 compared to the same period in 2017. General insurance or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event.
“There were 630 registered entities/persons in the non-life insurance industry as at 30 September 2018.
While in 2017 the total number of registered entities was at 579,” said IPEC.
Meanwhile, total GPW by non-life insurers amounted to more than $198 million for the nine months ended 30 September 2018, reflecting a 16,88 percent increase from $169 million reported for the comparative period in 2017. The increase in GPW during the period under review was mainly attributable to growth in business generated from motor insurance and fire insurance.
Moreover, just three out of a total of nine funeral assurance companies are compliant with regulatory minimum capital a level, which puts policyholders funds at risk in the event of an operator collapsing.
