Business / Local
Insurance sector urged to be more disciplined
04 Sep 2012 at 20:21hrs | Views
A local insurance expert has called on the local insurance sector to be more disciplined and get back to the basics in order to restore confidence of potential clients and partners.
The insurance sector, which over the past few years has been struggling to operate at optimum level, is slowly emerging from the woods amid calls for the players in the sector to be more disciplined and come up with realistic premiums.
In an interview on the sidelines of the on going four-day long Insurance Convention in Harare, President of the Insurance Institute of Harare, Mr Mike Chiurunga said there is need for discipline and accountability in order to restore confidence in the industry.
Apart from subdued business, the insurance sector is however still faced with recapitalisation challenges, limited investment options and inability to attract foreign investment.
Operations Executive with a local reinsurance firm, Mrs Rachel Hakutangwi says given the liquidity constraints and stiff competition on the market, there is urgent need to come up with diversified products as well as realistic premiums and desist from premium undercutting.
The Zimbabwean insurance market is well developed with about 15 insurance companies offering short-term cover and five offering life cover.
Observers say the recovery of the sector is threatened by the increase in cases of fraud and the continued premium undercutting, hence the need to deal with the worrying trend.
The insurance sector, which over the past few years has been struggling to operate at optimum level, is slowly emerging from the woods amid calls for the players in the sector to be more disciplined and come up with realistic premiums.
In an interview on the sidelines of the on going four-day long Insurance Convention in Harare, President of the Insurance Institute of Harare, Mr Mike Chiurunga said there is need for discipline and accountability in order to restore confidence in the industry.
Apart from subdued business, the insurance sector is however still faced with recapitalisation challenges, limited investment options and inability to attract foreign investment.
Operations Executive with a local reinsurance firm, Mrs Rachel Hakutangwi says given the liquidity constraints and stiff competition on the market, there is urgent need to come up with diversified products as well as realistic premiums and desist from premium undercutting.
The Zimbabwean insurance market is well developed with about 15 insurance companies offering short-term cover and five offering life cover.
Observers say the recovery of the sector is threatened by the increase in cases of fraud and the continued premium undercutting, hence the need to deal with the worrying trend.
Source - Zbc
