Life assurance continues to rebound


BUSINESS worth $145 million was written by the country’s life assurance industry during the third quarter ending September 30 2012, reflecting a 171% growth rate from figures reported in the previous quarter.

Business Reporter

Total costs grew by 194% to close the third quarter at $96 million buttressing the imminent need to spread risks through re-insurance and effecting cost-cutting measures.

The industry realised $46 million as technical profit. Expense and combined ratios were 23% and 68% respectively compared to the previous quota ratios of 36% and 63%.

“Total assets grew by 24% to close the quarter at $1 billion from $875 million reported previously,” reads part of report by the industry regulatory body Insurance and Pensions Commission (IPEC).

IPEC, however, said compliance with the prescribed asset ratio continued to be a challenge for the industry though the life assurance industry remained largely capitalised statutorily.

Capital to liability ratio (solvency) was at 14% against a regional minimum threshold of at least 100%.

The insurance regulator said the industry appeared to be on a recovery path with business written predominantly of a recurrent nature constituting 87% of gross written premiums.

“This may be attributed to low business activity fuelled by liquidity challenges prevailing in our economy as well as low confidence in the life assurance industry,” the report says.

“The resultant low policy values and pension benefits on conversion to the United States dollar could also be a contributory factor.

“To this extent, the commission will continue to probe the entire conversion process in an effort to meet fair policyholder expectations”

All but one life assurers were adequately capitalised in excess of $500 000 as prescribed by the insurance regulator.

Old Mutual, First Mutual Life and Zimnat Lion continued to dominate the sector.

“The traditional top three players continued to control more than 86% of business calls.

“This calls for innovation both in new product development and service delivery on the part of players especially the remaining six in order to boost needs to adjust to market needs otherwise products are now obsolete hence the need to revamp both their channels,” IPEC said.


  1. Business rekufa rinobhadhara mu Zimbabwe although it comes third
    1.. Politics
    2… Chakuti chakuti ministries
    3… Funeral parlour, assurance etc
    4… Mining
    5… Telecommunication
    6 .. Banking

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