ZIMBABWE’s short-term non-life insurance industry has recorded a 7,56% increase in gross premiums to $117, 82 million for the six months ended June 30, 2013 due to growth in volumes of business generated, latest industry statistics show.
Report by Tarisai Mandizha
In its second quarter report, the Insurance and Pensions Commission (Ipec) said non-life insurers amounted to $117, 82 million in the period under review with $50,04 generated through insurance brokers.
The regulator said non-life reinsurers, on the other hand, reported total gross premium of $60,30 million of which $29,21 million was generated through locally registered reinsurance brokers.
“The growth in total gross premium was buoyed by increases in business generated from motor insurance as well as bonds/guarantees which amounted to $5,1 million and $2, 44 million respectively,” reads part of the report.
Ipec said comparative to the business written, insures ceded more business to reinsurers during the period under review and this was also evidenced by a growth rate in reinsurance premiums of 11,25% which was more than the growth in total gross premium.
While total gross premium written by the non-life insurers was on the upward trend since 2010, the regulatory body said aviation and hire purchase insurance were the fastest growing business classes in terms of business written, with growth rates of 97,34% and 81,34% respectively and hail and marine insurance were the least performing classes of insurance in terms of growth in business generated.
“There were no significant changes in the distribution of business written with motor and fire insurance remained the dominant sources of business written. The two classes contributed 62.34% of total gross premium written during the period ended June 30 2013,” reads part of the report.
The regulator said all direct non-life insurers except Allied Insurance Company and Excellence Insurance Company reported capital levels which were above the regulatory minimum capital requirement of $750 000 effective June 30 2013.
“Although the capital levels for the two institutions were below the regulatory minimum, they were in sync with the level of business the said insurers wrote as shown by the solvency ratios for the two insurers,” reads part of the report.
“Notwithstanding the foregoing, the Commission is constantly engaging the two insurers to ensure regularisation of their capital positions.”
Ipec, however, said the number of insurance companies which reported capital positions that were compliant with the minimum regulatory capital requirement of $1,5 million effective June 30 2014 remained 12, the same number reported as at March 31 2013.
Ipec said the average solvency margin for the non-life insurers was 61, 12% as at June30 2013 compared to 55,50% reported as at March31 2013.
All the non-life insurers, except Altfin Insurance Company and Tristar Insurance Company, reported solvency margins which were compliant with the prudential minimum of 25% as at June 30 2013.