SOUTH African financial services group Liberty Holdings Limited has terminated its Liberty Blue cover in Zimbabwe with effect from June 30 2020 due to harsh economic conditions in the country.
— BY MTHANDAZO NYONI
According to a confidential email sent to its members and seen by NewsDay Business, the Zimbabwean economy has forced one of the biggest international medical aid companies, out of the country.
“The Liberty Blue value proposition was always designed to provide: meaningful and comprehensive cover for our members, financial freedom by eliminating shortfalls, and clinically sound medical outcomes,” read part of the email.
“In the past 18 months we have therefore followed a rigorous process to ensure continued delivery on our value proposition. However, despite our best efforts the economic conditions in Zimbabwe have continued to deteriorate, and Liberty Health has concluded it can no longer offer Liberty Blue cover in Zimbabwe.”
“As a result, we hereby confirm that cover under all Liberty Blue policies will cease on 30 June 2020….”
Zimbabwe’s economy is facing numerous challenges, chief among them galloping inflation, shortage of foreign currency, low production, among others.
The situation has been made worse by the outbreak of coronavirus.
The company is one of the biggest listed long-term insurers on the JSE by market capitalisation and ranks as one of the 50 largest companies in South Africa, with products distributed across multiple channels varying across the African continent. The company also offers asset management.