Zimpost targets insurance business growth as it unveils insurance products

Zimpost targets insurance business growth as it unveils insurance products

By Insurance24

HARARE, Postal services giant, Zimpost is set to unveil insurance products under the banner Post Insurance as the company seeks to diversify its product portfolio and take advantage of the thriving insurance sector.

In an interview acting managing director, Sifundo Moyo confirmed the development saying that Post Insurance was taking advantage of the company’s reputable brand to venture into the thriving insurance sector.

Post Insurance would be underwritten by two insurance companies that Moyo declined to reveal.

“Post insurance is our new product which we should be rolling out this week or next week latest. We are taking advantage of our strong brand, the trust that people have in us and the fact that the post office will always be there,” said Moyo.

He added, “When we talk about insurance, we are talking about confidence and customers would rather deal with a reputable institution.  We have come up with house brands insurance products and because Zimpost is not an insurance company, we partnered with two renowned insurance companies to underwrite our services,” Moyo said.

Moyo added that the insurance products were earmarked to bring convenience to its clients in over 240 post offices around the country.

“We want to bring convenience to people and a one stop shop phenomenon to communities where we are. We want to optimize on our capabilities as part of our strategy of financial inclusion,” he said.

According to experts, Zimbabwe’s insurance industry has potential to boost low savings appetite as well as local investments, which will counter over reliance on foreign investments. The sector has the capacity to revive the economy.

However, insurance penetration rate in Zimbabwe has been estimated at around 3.6%, lower than other regional peers. Regulator, the Insurance and Pensions Commission (IPEC) has since introduced a micro-insurance framework that aims to make insurance affordable up to the lowest income earners.

As a result, several companies have developed such products ranging from as little as 50cents with maximum payouts of $1000.