Regulation Reimagined

Dr. Grace Muradzikwa, Commissioner, Insurance & Pensions Commission of Zimbabwe

Andrew Chinoperekwei, the editor at Africa Insurance Magazine (AIM Publications) had an exclusive with Dr. Grace Muradzikwa (GM), the commissioner of the Insurance & Pensions Commission of Zimbabwe to understand the major regulatory and industry developments, future opportunities in the Zimbabwean insurance market and how the commission is reimaging regulation and building a resilient, sustainable and future-ready industry.

AIM: Reflection – how would you sum 2024 for the insurance industry in Zimbabwe?

GM: The year 2024 was a period of resilience, adaptation, and growth for Zimbabwe’s insurance industry. Despite macroeconomic challenges, the sector demonstrated stability and innovation, especially in the short-term sector.

One of the success stories in 2024, was the introduction and expansion of agricultural index-based insurance product from the pilot study in Goromonzi – Farmer’s Basket Insurance Product, which presents a significant growth opportunity for the industry. About 1, 800 farmers who participated in the pilot study paid US$15 premiums and received a payout of US$60, which we believe, will go a long way in making smallholder farmers appreciate the importance of insurance.

Another key milestone has been our role as one of the pioneers in Africa in adopting IFRS 17 in 2023. We are pleased that insurers produced 2023 Audited Financial Statements that were IFRS 17 compliant, reflecting the sector’s capacity to embrace international best practices.

In 2024, another major achievement was embracing the Risk-Based Supervision Blueprint (RBS), which marked the Commission’s shift to a more proactive regulatory framework. The industry has responded positively to this transition, and we are confident that RBS will strengthen the resilience of the insurance sector in the long term.

Additionally, we witnessed a steady increase in the number of micro insurers, signalling a growing focus on serving previously underserved markets. This trend is a welcome development, as it aligns with our financial inclusion agenda and ensures that more Zimbabweans, particularly those in rural and informal sectors, have access to affordable insurance solutions.

However, while we celebrate these advancements, we must also acknowledge the persistent challenge of low confidence in the insurance market, especially life assurance products and pensions due to legacy issues. IPEC continues to work with industry players to rebuild confidence by working on closing the legacy issues, strengthening regulatory oversight, enhancing transparency, and promoting innovation in the market.

Going forward, IPEC encourages all stakeholders to work together in driving innovation, increasing awareness, and ensuring that insurance and pension products deliver on their promise to policyholders and pensioners.

AIM: What are the major industry regulatory developments?

GM: The year 2024 was a landmark year for regulatory developments in Zimbabwe’s insurance and pensions industry, as we continued to strengthen governance, enhance transparency, and promote financial stability. Some of the key regulatory advancements include:

Gazetting of the Insurance and Pensions Commission Amendment Bill on 20 December 2024 – That was a flagship development for us as IPEC. We hope that the law-making process will move with speed for the Bill to be passed into law.
Approval of two pre-2009 compensation schemes and subsequent payments to some of the eligible members. However, the Commission is not satisfied with this and we are working with key stakeholders to address the identified challenges around finalising this matter.
Issuance of the Market Conduct Directive to enhance fair treatment of policyholders.
Issuance of the Circular on Settlement of claims, prescribing timelines for the settlement of valid claims, which was prompted by recurring complaints received by IPEC regarding unwarranted delays in the settlement of admitted claims.
The domestication of marine insurance in the 2025 National Budget Statement is another key development. This will result in retaining premiums locally and boost the local business.

AIM: Looking ahead – what do you think are the major opportunities for the industry?

GM: All things being equal, I think the insurance and pensions industry in Zimbabwe is poised for solid growth, driven by emerging opportunities that can enhance financial inclusion, economic resilience, and industry sustainability.

Some of the key opportunities include:

Expansion of Micro insurance – The growing interest in micro insurance presents an opportunity to extend financial protection to irregular and low-income earners, informal sector workers, and rural communities. With innovative products and distribution models, micro-insurance can drive financial inclusion and deepen insurance penetration.
Agricultural Index Insurance – Given Zimbabwe’s heavy reliance on agriculture and the increasing impact of climate change, the expansion of agricultural index insurance provides a major opportunity. This product can protect farmers from climate-related losses, promote agricultural productivity, and enhance food security, ultimately strengthening the economy.
Digital Transformation and Insurtech – Technology continues to revolutionize the insurance sector. We are currently working with FSD Africa and Cenfri to develop a regulatory sandbox in Zimbabwe, which will allow the industry to innovate and get their products tested in a closed environment. We expect this to go a long way in promoting innovation and insurance uptake in Zimbabwe.
Holistic Pension Reforms – The need to restore confidence in the pensions sector remains critical. Reforming the pensions sector can encourage more Zimbabweans to save for retirement. Additionally, strengthening governance and transparency will help rebuild public trust.
Regional and International Market Integration – Opportunities exist for Zimbabwe’s insurance and pension industry to expand into regional and international markets by leveraging trade agreements and cross-border partnerships. This can drive investment and industry growth.
Sustainable and ESG-Focused Investments – With the global shift towards sustainability, insurers and pension funds have an opportunity to invest in green energy, infrastructure, and other environmentally sustainable projects. This not only supports economic growth but also aligns with global trends in responsible investing.
The domestication of marine insurance is another growth area for the insurance sector in Zimbabwe given the country’s export and import activities.

AIM: Insights & Perspectives – building a resilient, sustainable and future-ready insurance industry?

GM: This question is at the core of our strategy. In 2024, we introduced an outcome promoting industry soundness and resilience. The Zimbabwean economy has experienced some shocks that have exposed some vulnerabilities in the industry. We would want the industry to have the capacity to withstand economic shocks and continue to perform its mandate of risk mitigation.

For the industry to be resilient, it needs to have robust risk management and capital adequacy. We are already a step ahead with our solvency tool – Zimbabwe Integrated Capital and Risk Programme (ZiCARP). We also need to embrace AI in underwriting and claims processing and deliberately invest in Insurtechs.

On Sustainability

The Commission signed the Nairobi Declaration on Sustainable Insurance, which is a commitment by African insurance industry leaders to advance ESG principles and align with the UN Sustainable Development Goals (SDGs). The initiative was introduced under the United Nations Environment Programme’s Principles for Sustainable Insurance (UNEP-PSI) framework.

On our part as IPEC, we are targeting to develop an ESG Framework this year to guide the industry to embed ESG in insurance operations and to develop climate-resilient insurance solutions, and strengthening industry collaboration with Government to drive ESG integration. ESG and the Nairobi Declaration should shape Africa’s insurance transformation, fostering climate resilience, ethical investments, and inclusive insurance growth.

Future Ready

To remain future-ready, insurers must anticipate disruptions, embrace innovation, and rethink traditional models. The Commission started 2025 with technical assistance in the Development of a Regulatory Sandbox to encourage innovative solution that are home-grown in the industry. The Sandbox offers an opportunity for flexibility for the regulator and an opportunity to learn and test new innovations whilst protecting policyholders.

The industry should also position itself to compete within the Continent and beyond as it prepares for the full adoption of the AfCFTA on trade in services.

AIM: Call to action for industry players…

GM: Our theme at the Commission is Regulation Reimagined. It is a call to action for what can we do differently to transform this industry. In the same way, we expect the industry to also think about what they can do differently to restore confidence in insurance and pensions – back to basics.

There is a need to align Business Models with ESG outcomes and develop insurance products that support sustainability, ethical governance, and social impact.

As regulators, we aspire to be catalysts for change. We want provide incentives to the industry to promote ESG-driven insurance solutions.

I also believe that with the growing informalisation of the economy, that is a growth area for the industry. They should, therefore, think about how they can tap into that market. Remember the new fortune at the bottom of the pyramid.

The industry must also develop research-based products that are informed by the market needs. Gone are the days when one could just do desk research, develop a product and shove it through consumers’ throats. Modern consumers know what they want and the tricky is in asking them what they want.

By expanding financial inclusion initiatives and provision of affordable micro insurance and disaster risk coverage for underserved populations the industry can transform lives and significantly play in pivotal role in economic development.