ZB Insurance hedge high risky regional business offshore: CEO, as cash funeral cover enjoys positive uptake
By Insurance24
HARARE, ZB Financial Holdings says risky regional business is placed offshore to ensure ability to settle claims in the region as foreign payments challenges continue to impact several businesses in the country.
“In terms of claims, for the region, we look at our risk and retrocede and place some business offshore, so when claims come we have basis to recover from the retrocessioneers, and through that we have been able to pay claims,” Group chief executive officer Ron Mutandagayi told Insurance24 in an interview.
ZB underwrites business in the region and the regional operations have continued to contribute a significant portion of reinsurance premiums at 25% in 2017 compared to – 21% in 2016.
The group has plans to establishment physical presence in the region particularly Mozambique but the plans remain constrained by the shortages of foreign currency.
Meanwhile, Mutandagayi said the Group will soon avail new products in the market that are also in sync with the micro-insurance products while at the same time continuously refreshing existing products to increase market appeal.
The group’s insurance units ZB Life and ZB Re were as reported for the full year 2017 profitable with net income 9% above prior year at $9.6 million.
Mutandagayi said that currently the ZB cash funeral cover continues to enjoy significant uptake in the market.
ZB cash funeral cover…this is a product where in exchange for premiums if you experience bereavement, we pay you in cash and meet some different expenses of the bereavement. Uptake is doing well and is one of our major products in life business,” he said.
He added that the Group will continuously improve on product line up and new products will be coming into the market shortly while at the same time continuously refreshing all products to ensure they continue to have market appeal.
ZB Life Assurance premiums firmed during FY17 with gross life premiums increasing in response to improved product penetration driven by the recruitment of more agents.
Life Assurance Premium increased 9% to $11.70 million compared to $10.72 million, while the expenses rose 7% to $5.29 milion from $4.96 million.
