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Gibson Mhaka Business Correspondent
ZIMBABWE’s insurance sector is on the recovery path as evidenced by an increase in premium growth in some insurance firms, an official has said.

Hamilton Insurance general manager Rindayi Nyatsanza said the sector had registered positive gains despite the difficult operating environment.

He attributed the growth to well thought-out strategies and aggressive public awareness programmes by the insurance players which had managed to restore people’s confidence.

“Despite prevailing economic challenges the insurance sector is showing signs of recovery as evidenced by the premium growth in some of the insurance firms.

“This is a result of well thought-out strategies and aggressive public awareness programmes, which are being run by insurance companies as a way of restoring people’s confidence,” Nyatsanza said.

“The sector was affected after most policy holders lost their contributions to the insurance companies due to hyperinflation and adoption of the multi-currency regime in 2009.

“It’s against such a background that policy holders have started to take notice of this sector once again”.

According to FinScope Consumer Survey Zimbabwe 2014, at least 70 percent of Zimbabwe’s adult population is not insured — be it medical aid or funeral cover.

Nyatsanza noted how the sector survived economic difficulties in the last few years after clients lost savings with the adoption of the multiple currency system in 2009.

He urged farmers to insure their livestock so they could easily access loans from banks.

“Many farmers are failing to access loans because banks demand collateral security in order to safeguard the interest of their investors. We’re urging farmers to insure their livestock so that they can easily access loans from the banks by using their insured livestock as collateral security,” said Nyatsanza.

He was speaking during a donation to King George VI School in Bulawayo, a centre for children living with disabilities.

The company donated 15 mattresses to the institution.

He said the donation was a sign that the sector was on a recovery path.

“Although the current economic environment is forcing many companies to operate in survival mode where cost cutting, stream lining, optimisation, just to mention a few, have been the most commonly used terms in business, there is a need by these companies to spare a thought for disadvantaged members of society like pupils at King George V1,” said Nyatsanza.