ICZ new head office in Harare commissioned, as Finance Minister urges more investment into infrastructure projects
HARARE, Finance Minister Patrick Chinamasa says the insurance industry must use its tactical position in the economy to mobilize resources for strategic public and private infrastructure development.
He was speaking at the commissioning of the Insurance Council of Zimbabwe (ICZ) new head office in Harare, yesterday.
“Insurance is a vital cog in economic development through its role as a risk transfer mechanism, therefore there are further opportunities to invest in that are key to economic development,” he said.
Chinamasa said for instance the energy sector have various opportunities as the country seek to reduce power deficit which is being augmented by imports from the region.
The insurance industry has over the years invested in excess of $200 million in various sectors of the economy. These include insurance players subscribing to a $100 million roads infrastructure bond that was floated by the Zimbabwe national Road Authority early this year as well as a $50 million irrigation infrastructure bond.
“The certainty and peace of mind that insurance provides is a necessary catalyst that spurs our entrepreneurs, inventors and developers to push the boundaries of what is possible, “the Fin Minister said.
Asset base for insurance industry in the country is estimated at around $4 billion. Meanwhile, ICZ chairman, Brilliant Shumba said the real problem on claims defaulting by insurance players was the issue of perception and that they sometimes acted unfairly.
The Insurance Council of Zimbabwe (ICZ) is the representative body of the short-term insurance industry, comprising all categories of short-term insurers, including reinsurers. It represents the industry to all relevant stakeholders to ensure a sustainable and dynamic industry.