US$-denominated insurance gains popularity

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FOREIGN currency-denominated insurance has gained popularity in Zimbabwe, amid high inflation, with US$ policies accounting for close to half of the business on short-term insurers books as at June 30, 2021, regulator statistics show.

Following a ban on the use of foreign currencies in domestic transactions in 2019, insurers were given an exemption starting November 2020.
In its latest report, the Insurance and Pensions Commission (Ipec) said short term insurers’ Gross Premium Written (GPW) in foreign currency for the half year was US$54,90 million.