Source: Adapt or perish, IPEC urges insurers to explore new areas – herald
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The Insurance and Pensions Commission (IPEC) has implored insurers to embrace and adapt to digital transformation while simultaneously enhancing product diversification into untapped areas.
Delivering a presentation during the recently held Insurance Institute of Zimbabwe Winter School, Ipec director of insurance and microinsurance, Ms Sibongile Siwela, said adapting to change was not optional.
“In this era of digital transformation, adapting to change is not optional. It is essential for the insurance industry.
“The sector is currently navigating significant shifts that are reshaping operational frameworks and customer engagement strategies.
“A prime example is the integration of mobile technology in Zimbabwe, where they have fundamentally altered the payment infrastructure.
“Insurance providers are harnessing these mobile solutions for both premium collection and claims management, thus facilitating more efficient client interactions,” she said.
The insurance and pensions sector is facing significant shifts that are reshaping operational frameworks and customer engagement strategies.
Ms Siwela said in today’s fast-paced and evolving landscape, continuous learning was imperative to maintain relevance, enhance competitiveness, and achieve personal fulfilment.
“Ultimately, a commitment to lifelong learning is critical for fostering innovation, resilience and a thriving society.
“The Insurance Institute is implementing a robust continuous professional development programme, encouraging all our members to register, log in, and check their learning hours,” she said.
She highlighted that motor insurance contributes over 40 percent of revenue, indicating a critical lack of product diversification within the sector.
On strategies to strengthen confidence and compliance, Ms Siwela said Ipec encouraged expansion into untapped areas, such as agriculture index insurance, to mitigate overreliance on traditional products.
Zimbabwe’s insurance market is experiencing a surge in demand for agricultural insurance due to the country’s heavy reliance on agriculture as a key economic sector.
Ms Siwela noted that new capital requirements, as provided through Statutory Instrument 67 of 2025, bolster financial stability and safeguard policyholder interests.
“The commission supports robust strategies for insurers to manage currency volatility, ensuring stable operations and returns.
“They should also increase awareness of policyholder rights and claims processes, which is vital for building trust and informed decision-making,” said Ms Siwela.
She also highlighted that broader asset allocation beyond operational properties, particularly in the funeral sector, is crucial for liquidity and long-term stability.
The Insurance market in Zimbabwe is projected to reach a market size (gross written premium) of US$2,51 billion in 2025.
Within the market, non-life insurance dominates with a projected market volume of US$1,45 billion this year.
The average spending per capita in the insurance market is estimated to be US$144,71 in 2025.
