STAFF WRITER
Gross premium written by Zimbabwe’s short-term insurers was up 16 percent to nearly $200 milliom driven by motor and fire classes, a regulator’s report has shown.
According to the Insurance and Pension Commission third quarter report for the period ending September 2017 the volume of business generated by non-life insurers as measured by total Gross Premium Written (GPW) amounted to $198,45 million.
This, the report shows reflects a 16,88% growth from $169,79 million that was reported in the comparative period in 2017.
“The increase in GPW was mainly on the back of significant growth recorded in motor and fire insurance, which growth amounted to a total $21,28 million.
The overall growth in GPW could also be a reflection of upward review of the policy limits across the board, and the corresponding upward review of premiums,” reads the report.
“Non-life reinsurers, on the other hand, reported GPW of $86,54 million for the nine months ended 30 September 2018, which was an 8,54 percent growth from $79,73 million which was recorded for the comparative period in 2017. The key drivers for the growth in GPW of non-life reinsure’s were increases experienced on miscellaneous accident, hail and motor insurance books.”
Total assets for the insurance industry grew by 7,3 percent from $444,38 million as at 30 June 2018 to $476,84 million as at 30 September 2018.
Nonlife insurers reported total assets of $279,72 million which accounted for 58,66 percent of the total assets for the industry as at 30 September 2018. This was followed by reinsurance companies which reported total assets of $167,08 million which contributed 35,04 percent of the total industry assets.
The total investments in prescribed assets as at 30 September 2018, the report showed translated into an industry average prescribed asset ratios of 9,12 percent and 12,84 percent for non-life insurers and non-life reinsurers respectively, which were above the regulatory minimum of five percent.The Commission has since penalised all the non-compliant players and tasked them to submit compliance plans.
