INSURANCE firm, Zimnat Group says it is introducing new agriculture-oriented products for the growing informal sector, leveraging on its recent partnership with Sanlam Emerging Markets.
Zimnat General Insurance managing director Mr Stanley Mazorodze said this would ultimately grow the insurance firms’ market share from the current estimated 15 percent.
Following years of economic challenges, companies have the economy has been shifting towards informality, a sector that is usually unbanked.
Mr Mazorodze said the Zimnat was crafting new products to tap into that market targeting mainly the agriculture sector, which is the backbone of Zimbabwe’s economy.
He added the insurance penetration in Zimbabwe, currently at an estimated 2 percent provided scope for new products to tap into the market.
“The industry is shifting from formal to informal sector, so the informal – unbanked- does not mean they do not need insurance,” said Mr Mazorodze in an interview.
“So we are looking at how we can come up with products that assist with efficient collection methods for such a market because they do not bank and therefore you cannot do stop orders.
“We want to provide proper comprehensive insurance products that take care of drought, livestock, micro insurance for the informal sector,” he said.
Agriculture insurance covers against a variety of weather risk including drought, floods, hail-storms, wind damage, fire loss, fog, heat waves and the all-important rainfall deficit.
In the case with other crops, apart from tobacco, farmers insure against fire and during transit.
Mr Mazorodze indicated the partnership with Sanlam would add weight to the group’s efforts in creating new markets, while enhancing existing ones.
“The partnership is assisting us to improve our products, having access to international products. Creating new products that do not exist in this market will assist us create our own new market
“Through creation of new markets and enhancing the current one will help us increasing income.
In 2015, SEM, a subsidiary of Sanlam Limited acquired 40 percent shareholding in Zimnat Group.
Zimnat Group comprise of Zimnat Life Assurance, Zimnat General Insurance, Zimnant Asset Management and Zimnant Microfinance.
In line with the partnership, Zimnat Group rebranded all its subsidiaries to reflect the partnership with Sanlam.
Zimnat was founded in 1946 and has an asset base of $92 million. Sanlam was established in 1918 and is present in 35 African countries.