Staff Writer 
NYARADZO Life Assurance Company (Nyaradzo) has emerged as the dominant player in Zimbabwe’s life assurance sector, securing an impressive 46,6 percent share of the market by revenue for the first nine months of 2024.
The company’s success is largely attributed to its strong performance in funeral assurance, which remains a cornerstone of the life assurance industry in the country.
The latest report from the Insurance and Pensions Commission (IPEC) highlights Nyaradzo’s revenue at ZiG798,39 million, solidifying its lead in an industry that generated a total of ZiG1,72 billion in insurance revenue. Nyaradzo’s dominance far outpaces its closest competitors, with Doves Life holding 12,7 percent and Zimnat Life trailing at 7,9 percent.
The sector’s heavy reliance on funeral and group life assurance products underscores the prevailing consumer preferences in a challenging economic environment.
Meanwhile, the life assurance sector in Zimbabwe is undergoing notable growth, with a reported 24 percent year-on-year increase in insurance revenue, translating to a US$123,77 million equivalent.
Foreign currency business contributed 62 percent of this total, reflecting a shift by policyholders towards forex-denominated policies amidst local currency volatility.
“This increase signifies policyholders’ preference for stability in uncertain economic times,” IPEC noted.
Despite these gains, the report highlights areas requiring improvement. A total of 94 642 policies were marked as “not taken up,” with an anticipated revenue loss of ZiG532,17 million. This figure points to gaps in consumer education and onboarding processes, particularly for companies like Old Mutual Life and Econet Life, which recorded the highest NTUs.
The sector’s total assets have decreased by 9 percent to ZiG11,3 billion (US$453,38 million), attributed to currency depreciation. However, the industry has maintained resilience, achieving an average combined ratio of 50 percent, a key profitability indicator.
While Nyaradzo and other major players like Doves and Zimnat have cemented their positions, the report advises diversification.
“Relying heavily on funeral assurance may not be sustainable in the foreseeable future,” IPEC warned, urging companies to innovate and adapt to evolving consumer demands. — Staff Writer
