Insurance sector key to driving economic transformation: World Bank
HARARE, The World Bank (WB) says Zimbabwe’s insurance industry remains a key sector that has potential for growth, contributing towards the transformation of the country’s economy.
WB Zimbabwe senior economist Johannes Herderschee told Insurance24 at the side-lines of the WB Zimbabwe Economic Update (ZEU) launch that the growth potential of the sector remains largely unexplored.
“As WB we have not done a specific report for the insurance sector, but we have been following the trends which show potential growth and expansion of the industry,” he said.
The economic meltdown over the last decade severely dented the insurance sector, resulting in Zimbabwe’s insurance penetration ratio declining to around 2% from 6%.
Regulator, the Insurance and Pension Commission (IPEC) recently said is targeting to increase insurance penetration ratio to 20% in the next two years from the current 3, 6 % through micro insurance which is largely affordable to low income earners.
According to a FinScope survey of 2014, 70% of the adults in the country are not insured and of the 3% with insurance, 77% of them were in respect if funeral insurance.
Meanwhile, according to the World Bank’s Economic Update report, Zimbabwe’s GDP growth is expected to grow 2.8% in 2017 underpinned a revitalized agriculture sector and improving commodity prices.
