Cassava’s insurtech business in growth trend
Staff Reporter
HARARE, Cassava’s insurtech business has been trading on an upward trend with a 17% growth recorded in life policies in the nine months to November 2019.
In a third quarter report, the group company also said the short-term insurance business recorded a significant growth at 5,050% compared to same period last year.
“The EcoSure and Moovah businesses have managed to maintain their claims ratios at a level lower than the industry average,” said the company.
Overall, Cassava’s other product and service lines performed well during the period under review, except for mobile money transactions which declined 19%, in a trading period where current tariffs lagged behind inflation.
The success of the group’s business is predicated upon stability, efficiency and effectiveness of its technology platforms.
“Consistent with the H1 FY20 performance, we continue to see an increase in volumes across almost all product and service lines, notwithstanding the erosion of tariffs in real terms that have not matched the inflation rate,” the company said.
The number of active customers increased by 17%. Steward Bank’s customer base rose 75% from Q3 FY19 to Q3 FY20.
“The Bank has, however recorded a decline in transactions on its Point of Sale terminals by an average of 46% from the Q3 FY19 to Q3 FY20, a trend which is commensurate with declining volumes in the retail sector as consumer disposables incomes fails to keep up with inflation.”
Cassava Smartech has developed a strong track record of leveraging technology to successfully deploy innovative insurance products that promote financial inclusion. These include the widely adopted EcoSure funeral cover and the fast-growing Ecosure Moovah motor vehicle cover.
While the operating environment remains challenging, the group will continue to focus on identifying and developing opportunities in the market that are consistent with the changing customer demands without compromising on service excellence.
