The People’s Own Savings Bank (POSB) and AFC Insurance Company have entered into a bancassurance partnership that will see the bank distribute agricultural and commercial insurance products through its nationwide branch network as the two State-owned entities seek to broaden financial inclusion and strengthen risk management for farmers.
Under the agreement, POSB will offer insurance products underwritten by AFC Insurance, including crop and livestock cover, agricultural loan protection, asset insurance and goods-in-transit cover.
Both institutions are subsidiaries of the Mutapa Investment Fund.
POSB chief executive officer Garainashe Changunda said the partnership would expand access to insurance services while strengthening the bank’s role as an integrated financial services provider.
“By leveraging synergies within the Mutapa Investment Fund and working closely with our strategic partners, we are expanding our service offering and bringing essential insurance products closer to the people we serve,” Changunda said.
He said the arrangement supports efforts to improve access to financial services, particularly in rural communities.
Keep Reading
- POSB appoints new CEO
- POSB launches new prepaid, debit cards
- Mnangagwa renames Sovereign Wealth Fund of Zimbabwe
- Is Zim ready for Sovereign Wealth Fund?
The partnership is expected to help address challenges faced by farmers in accessing finance, with insurance products designed to mitigate risks associated with climate shocks, livestock losses and other agricultural hazards.
AFC Insurance managing director Cuthbert Masukume said the collaboration would utilise the extensive reach of both institutions to provide insurance solutions to underserved communities and support productive sectors of the economy.
The two companies said the partnership aligns with the government’s National Development Strategy 2 (NDS2), which seeks to promote financial inclusion, agricultural productivity and economic growth.
Rollout of the insurance products through POSB’s banking platforms is expected to begin immediately.