Insurance sector begs for public confidence
MEMBERS of the Insurance Institute of Bulawayo (IIB) on Friday left the comfort of their offices and spent the day in public, begging for public confidence and trust on services they offer.
e sector conducted a public awareness and client engagement programme in the Central Business District where members explained their services and attended to customer concerns.
The programme was done to mark the ‘Insurance Market Day’, which sought to educate the public and demystify misconceptions about the operations of the insurance industry. CALEDONIA Mining Corporation has commissioned a new oxygen plant at Blanket Mine in Gwanda as the gold producer seeks to improve metallurgical recovery and reduce cyanide usage at the mine.
The mining group said based on test work conducted, it was anticipated that the plant would improve overall metallurgical recoveries.
“The mining corporation is pleased to announce the successful installation and commissioning of a new oxygen plant at the Blanket Mine in Zimbabwe.
“The new oxygen plant is expected to improve metallurgical recovery and reduce cyanide consumption at Blanket. Based on test work conducted, it is anticipated that the plant will improve overall metallurgical recoveries at Blanket to approximately 94 percent,” it said.
The company said recoveries have averaged an estimated 93 percent in 2019. Commenting on the successful commissioning, Caledonia chief executive officer, Mr Steve Curtis, said: “We are pleased to have successfully commissioned the new oxygen plant at Blanket and look forward to improved operating efficiencies as a result.
“This marks the latest in a series of investments to increase production and improve operating proficiency at Blanket as we continue our growth trajectory to 80 000 ounces per annum by 2022.”
Mr Curtis said the new oxygen plant will provide up to six tonnes of improved oxygen
IIB vice president, Ms Nomalanga Jogwe said, Friday was the last day of their international customer service week.
“As IIB we have taken it upon ourselves to host the insurance market day on the last day of the customer service week.
“Basically, we are having the insurance market day to make our members available and open to the public for them to ask any questions concerning insurance so that we demystify the thinking that insurance companies are thieves,” she said in an interview.
Public confidence in insurance has been low since 2008 when thousands of people’s insurance and pension savings were eroded by hyperinflation and no compensation was paid. supply to the Blanket Carbonin-Leach plant, which is expected to increase recoveries to about 94 percent.
“We also anticipate that the oxygen plant will result in slightly lower operating costs as cyanide consumption is expected to be reduced as a result of the improved oxygen supply and the operating costs of the new oxygen plant are predicted to be lower than those of the previous two-tonne plant,” said Mr Curtis.
In July this year, Caledonia announced the completion of shaft sinking at the new Central Shaft at Blanket Mine which is part of its $44 million investment programme. The shaft sinking project that began in early 2015 is now moving to the equipping phase prior to commissioning in the third quarter next year.
It is hoped that increased production, combined with economies of scale and lower future capital investment will result in significant increases in the group’s profit and distributable cash.
Meanwhile, gold output at Blanket Mine improved by 6,4 percent to 12 712oz in the second quarter ended June 30, 2019 compared to 11 948oz in the previous quarter.
The yellow metal’s output for the quarter under review was slightly below target, but ahead of the comparable quarter in 2018, where the projection was 12 657oz. Despite gold output in the quarter under review being lower than the previous comparable period, Caledonia maintains its 2019 full year production guidance of 53 000 to 56 000oz and remains on track with progress towards its 2022 target. Against this background, the insurance and pension sector has been perceived negatively by the generality of Zimbabweans.
Market analysts have since called on players in the sector to educate the public on the benefits of insurance cover.
Ms Jogwe said this was the reason why they conducted the event, the first of its kind in Bulawayo.
“We just want to make ourselves available to the public in order to rebuild consumer confidence.
“This is the first time IIB has hosted the Insurance Market Day and we plan to hold the event twice a year in future,” she said. IIB members who participated in the programme included life insurers, short-term insurers and brokers as well as regulators such as the Deposit Protection Corporation (DPC).
Some of the prospective insurance policy holders interviewed by this paper said they wanted to understand more about the insurance sector before becoming policy holders.
“In the past we have read or heard about people who failed to get compensation despite being policy holders,” said Mr Dingumuzi Khumalo.
Ms Nancy Dube said after visiting the life insurers exhibition, she now understood the concept of insurance cover.
“The obtaining inflationary environment is however very discouraging for one to contribute towards insurance cover,” she said. — @okazunga