Counting the costs post violent riots
By Insurance24
HARARE, The recent wave of political riots and violence countrywide left a trail of destruction to both companies and individual properties. Several company equipment buildings, motor vehicles and buses were destroyed.
In the aftermath of this, who is counting the losses? Insurers or victims?. Speaking to the Insurance Council of Zimbabwe (ICZ) chairman, Musa Bako, he said, losses due to political riots or violence are not covered in Zimbabwe.
“We took a deliberate decision to exclude that a few years ago due to the nature and volatile political situation in Zimbabwe,” he said.
The Insurance Council of Zimbabwe is an association of all short-term insurance and reinsurance operators who are registered and licensed by the Insurance and Pensions Commission (IPEC) and authorized by Ministry of Finance and Economic Development.
Bako however said, select individual companies have entered into arrangements with international insurers to cover risk associated with political violence and terrorism.
“They are companies with strong balance sheet and they are present in various countries that have high risk of terrorism, thus local players are leveraging on that,” he said.
Meanwhile, Bako said the industry is currently under siege from the three tier pricing system which has eroded value.
“Most equipment is now imported which require foreign currency when premiums s continue to be paid in local currency. This is impacting negatively on insurer’s performance and profitability,” he said.
