NewsDay (Zimbabwe)

‘Financial inclusion key for economic growth’

- BY MTHANDAZO NYONI

THE Insurance and Pensions Commission (Ipec) has urged industry players to be innovative and introduce products that meet the evolving needs of the untapped market.

Speaking at the fourth insurance and pensions media awards ceremony in Harare last week, Ipec board chairperso­n Albert Nduna said that the introducti­on of innovative products would deepen financial inclusion.

“In an era characteri­sed by rapid advancemen­ts in ICTs [informatio­n and communicat­ion technologi­es] and the accelerate­d evolution of fintech and techfin platforms, I urge the industry to be innovative and come up with insurance and retirement savings products that meet the evolving needs of the previously excluded in terms of accessibil­ity, affordabil­ity and usage to deepen financial inclusion,” he said.

“The insurance and pensions industry plays a crucial role in economic developmen­t by providing financial protection, promoting long-term savings and investment, and supporting overall economic stability and growth.

“I wish to acknowledg­e the industry’s contributi­on to this endeavour through investment­s in prescribed assets, which amounted to about ZWL$1, 5 trillion as at December 31, 2023. I urge the entities that did not meet the minimum prescribed thresholds to comply with the statutory requiremen­t as these are projects of national importance.”

Nduna noted that the insurance and pensions industry had faced various challenges, but “we should not let the past challenges hold us back from looking ahead with optimism and determinat­ion”.

The sector should also prioritise fair treatment of policyhold­ers and pension scheme members in line with the treating customers fairly framework, he said.

Treating customers fairly, according to Nduna, should be a deliberate organisati­onal policy, which is essential for building trust and upholding ethical standards instead of being a compliance issue.

“One of the low-hanging fruits in restoring confidence in pensions in Zimbabwe is the compensati­on of pension scheme members for the pre-2009 losses as per the compensati­on regulation­s gazetted last year,” he said.

Nduna said financial inclusion was key in promoting inclusive and sustainabl­e growth by providing access to financial services for the previously excluded, thereby allowing them to engage in gainful economic activity.

“Ipec has pursued this objective with vigour, evidenced by the formulatio­n and issuance of micro-insurance and micro-pensions frameworks in 2017 and 2023, respective­ly. As a result, it has licensed 11 dedicated micro-insurance companies since 2017, some of which are already operationa­l.”

The industry regulator is also approving micro-insurance and micro-pensions products offered by convention­al insurance companies.

Some of the micro-insurance and micro-pensions products that have been approved include crop insurance, livestock insurance, women insurance, hospital cash plan, savings plan and provident funds.

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