Staff Writer
Zimbabwe’s life assurance industry is increasingly shifting away from traditional long-term insurance products towards predominantly renewable annual policies, prompting the Insurance and Pensions Commission (Ipec) to urge strict compliance with regulatory requirements, particularly the Funeral Directive.
According to Ipec’s life assurance sector report for the third quarter of 2025, the trend is most pronounced in funeral assurance and group life assurance products, which now dominate the market.
“While these products continue to drive revenue growth, the growing preference for annually renewable policies raises questions about alignment with the objectives of the Funeral Directive, especially regarding the long-term security of policyholders.
“As a result, the industry is strongly encouraged to strictly follow the rules set out in the Funeral Directive,” reads part of the report.
During the review period, direct life insurers generated insurance revenue of ZiG4,59 billion, equivalent to approximately US$17,205 million at the average official exchange rate.
This represented a 39 percent increase from the US$123,77 million recorded in the same period in 2024, reflecting continued growth in the sector despite structural shifts in product offerings.
According to the report, foreign currency-denominated revenue accounted for 55 percent of total insurance income during the quarter, down from 62 percent in the previous period.
Ipec attributed the decline mainly to relative exchange rate stability. The Commission, however, noted that Heritage Life and Nhaka Life failed to submit their mandatory foreign currency reports, urging all industry players to submit required returns on time to avoid regulatory sanctions.
The report noted that funeral assurance and group life assurance remained the primary sources of income for the life insurance sector, together accounting for 82 percent of total revenue.
Ipec said the steadily rising share of revenue from these two segments is gradually affecting the market share of traditional life assurance products, reinforcing the shift away from long-term policies.
Nyaradzo Life Assurance Company maintained its leading position in the life assurance sector, holding a 39,27 percent market share.
“The dominance was largely driven by the company’s strong performance in funeral assurance policies, which continue to anchor revenues across the industry,” reads part of the report.
Ipec noted that revenue concentration remained high, with the total revenue of the top five life assurance companies reaching ZiG3,85 billion, and they accounted for 84 percent of the sector’s total revenue, underscoring the significant dominance of major market players.
The Commission said the Herfindahl-Hirschman Index (HHI) for the industry stood at 2,184.10, indicating a moderately concentrated market characterised by a few dominant firms alongside some competitive elements.
In terms of product composition, funeral assurance remained the main driver of the life assurance sector, contributing 68,04 percent of total revenue.
Group life assurance followed as the second-largest segment at 14,27 percent, while credit assurance emerged as the largest contributor outside the leading products, accounting for 7,90 per cent of total revenue, while term insurance contributed 4,35 percent.
Other life products accounted for 4,3 percent, with endowment plans and whole life products remaining marginal at 0,59 percent and 0,54 percent, respectively.
In terms of foreign currency earnings, the life insurance industry earned US$93,77 million in foreign currency revenue, marking a 22 percent increase from the US$76,91 million reported in the same period in 2024.
Ipec said the growth was mainly driven by policyholders migrating from local currency policies to foreign currency-denominated policies, with new business acquisition contributing marginally, consistent with the sector’s high recurring revenue nature.
Despite the growth, the Commission reiterated the need for strict compliance with Statutory Instrument 280 of 2020, which mandates asset-liability matching for foreign currency business.
