BUSINESS TECHNOLOGY MEDIA FOR AFRICA

ICT to drive Zim's insurance penetration

ICT to drive Zim's insurance penetration
Staff Writer
By Staff Writer, ITWeb
01 Jun 2012

Information communication technology could be the answer to poor insurance penetration in Zimbabwe, said senior official.

Mike Chiurunga, president of the Insurance Institute of Harare, said embracing ICT would increase insurance penetration in Zimbabwe arguing that this would reduce product distribution cost and raise awareness faster.

“One of the reasons for the low penetration is lack of insurance knowledge. ICT is a pivotal centre turbine in increasing insurance penetration in Zimbabwe,” said Chiurunga

He added the Zimbabwe public should be educated about the need, importance, benefits and products of insurance.

"The insurance industry needs to capitalise on the social media in order to widen its coverage, communication and education sphere,” he said.

The insurance industry employs over 15 000 people in Zimbabwe, yet individual membership is extremely low, if not insignificant.

Chiurunga said the institute lost its charisma during the “lost” decade, yet it was a critical body in Zimbabwe’s insurance sector as Harare headquarters the majority of the insurance companies.

“ICT could assist in having a personalised relationship with the insuring public and help claw back public confidence by increasing the visibility of the industry,” Chiurunga said.

He said trust levels in the sector had increased after nose-diving during the hyperinflationary era when most people’s saving and investments were eroded when the economy was formally dollarised in January 2009.

“We are now dealing with hard currency. Clients want efficient service delivery; they want to derive value for every penny spent. In fact, every expenditure is viewed as an investment; therefore, it has to have a return,” Chiurunga said.

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