ZAFA targets increased uptake of funeral assurance products


ZAFA targets increased uptake of funeral assurance products

By Insurance24

HARARE, The Zimbabwe Association of Funeral Assurers (ZAFA) says most funeral assurance products are micro-products which are affordable even to the vulnerable groups of society, but due to lack of educational campaigns, the products end up with the wrong people.

ZAFA General Manager Taka Svosve told Insurance24 on the sidelines of commemorations of the Insurance Awareness Day last weekend in Gweru that the association, through partnering the Insurance and Pensions Commission (IPEC) in the awareness campaigns is looking to increase the uptake of funeral assurance products.

“The penetration rate is still low, that is why we are partnering in the campaign in order to increase uptake. The industry is moving up from where it has been over the 15 to 20 years back and we want people to know more about funeral assurance and policies so that we get more uptake,” he said.

This year’s Insurance Awareness Day was held on the 28 June 2018. In that regard, the Insurance and Pensions Commission of Zimbabwe (IPEC) had already struck the right code, taking the awareness to selected areas of the country that include the rural populace ahead of the day.

The main agenda is to spread awareness on insurance and pensions, a move that will go a long way in de-mystifying Insurance as a cost or luxury.  The road shows are also being attended by various industry associations and companies that will also take time to engage and share information with the communities.

According to Svosve, through the campaigns, people are getting more knowledgeable and the rate of inquiries from far afield within Zimbabwe has improved.

“Most of the funeral assurance products are micro-products, it is only that the concept of insurance, people thought it was for elite, but in essence, the funeral products are the cheapest,” he said.

Svosve said, as an industry, they are trying to reach out, especially to the previously marginalized communities.

“We cannot have cheaper products yet reaching the wrong people and we are improving on the distribution channels,” he said.

Insurance and Pensions Commissions (IPEC) spokesperson Lloyd Gumbo said the goal of these campaigns is to make those in the rural areas know that insurance policies and pensions are not for those in urban areas, but they can be covered too.

Nhau Chivingira, manager of pensions at IPEC urged people to ensure that they buy insurance from well established and registered companies. He said people should shy away from agents who are found at most entrances of Post Offices, selling their own covers.

The IPEC insurance awareness campaigns have so far been held in Murehwa, Mount Darwin and Gweru.