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Leonard Ncube in Victoria Falls
THE insurance industry should be innovative and come up with packages that tap into the informal sector and involve them in the mainstream economy, Public Service, Labour and Social Welfare Minister Dr Sekai Nzenza has said.

In a speech read on her behalf by her Permanent Secretary, Dr Judith Kateera, at the Insurance Institute of Zimbabwe (IIZ) annual conference in Victoria Falls, the Minister also called for increased compliance in the industry.

“The closure of industry led to unemployment and growth of the informal sector. This now calls for innovation to tap into non-traditional micro insurance products. The informal sector needs insurance and this we must provide otherwise our failure to provide viable options will lead to a situation where the informal sector establishes systems that work for them in their underground economy,” said Dr Nzenza.

She challenged the IIZ to come up with new financial products catering for the self-employed and informal sector, as well as dispel negative perception among citizens. Dr Nzenza said the insurance industry should be able to mobilise savings from people and be able to deploy them back to contributors.

She called for a holistic approach urging the institute to push for partnerships and joint ventures. The insurance sector is targeting seven percent penetration growth rate, which is key to the country’s economy as it enhances domestic resource mobilisation.

Dr Nzenza said Government’s Transitional Stabilisation Programme (TSP) and the 2030 upper middle income vision were dependent on a viable insurance industry. She challenged insurers to be innovative and explore new opportunities and business brought about by new memoranda being signed by Government.

“The future of Zimbabwe business requires change, innovation, dedication, commitment, loyalty and love for one’s country. While the leadership is emphasising the mantra that Zimbabwe is open for business, it’s critical that this openness is not misunderstood and misinterpreted,” said Dr Nzenza.

She called for compliance and upholding of regulations to protect the vulnerable.

Dr Nzenza said besides setting up the Insurance and Pension Commission (IPEC), Government has promulgated a law on corporate governance to enforce compliance. She challenged IIZ to cascade knowledge about legislation to grassroots. — @ncubeleon