Published: 2 hours ago

In Zimbabwe, funeral assurance is more than an insurance product-it is a cultural practice, an economic safeguard, and a psychological comfort all rolled into one. While traditional life insurance products such as endowments and whole life policies continue to struggle for traction, funeral assurance has firmly cemented its position as the country's most popular insurance product.

According to the Insurance and Pensions Commission (Ipec) Q1 2025 report, funeral assurance accounted for an overwhelming 74 percent of total life insurance revenue in the first quarter of the year. At the heart of this dominance lies a simple truth: Zimbabweans value tangible benefits, particularly in an economy rocked by inflation, frequent currency changes, and unpredictable income streams.

Unlike other life policies that promise future payouts vulnerable to currency depreciation or complex terms, funeral assurance provides clear, immediate, and guaranteed services-coffins, transport, tents, and burial arrangements. For policyholders, this means not only peace of mind but also dignity at a time of loss. "People can't risk uncertainty when burying a loved one. With funeral assurance, the value is seen, not imagined," said one Harare-based policyholder.

Ipec data shows that funeral specialists dominate the market. Nyaradzo Life leads with 50.13 percent of all insurance revenue, underwriting funeral business exclusively. Doves Life, also focused solely on funeral cover, holds second place with 12.58 percent. Together, these two companies control over 62 percent of the industry, far ahead of diversified insurers such as Old Mutual, Zimnat, and First Mutual.

This dominance is rooted in Zimbabwe's challenging economic history. Over the past decade, the country has moved from the Zimbabwe dollar to the US dollar, then to the ZWL, and now to the Zimbabwe Gold (ZIG) currency. In such an environment, traditional sum-assured policies often fail to hold their value. A policy purchased in local currency may be worth only a fraction of its original value when a claim is made.

Funeral assurance avoids this pitfall by offering in-kind benefits rather than cash payouts. Transport, caskets, and burial services are tied to real assets that retain value regardless of currency shifts. "Families don't have to worry if ZIG collapsed yesterday. A coffin is still a coffin. A bus is still a bus," remarked one industry observer.

While funeral assurance continues to dominate, its success also highlights the shortcomings of other insurance products. Some insurers are now attempting to "funeralise" other lines by introducing inflation-proof, asset-linked products such as land-backed endowments and savings plans. These remain in their early stages, and whether they can match funeral assurance's appeal is yet to be seen.

Behind the industry's stability, actuaries play a crucial but often invisible role. They design products that balance affordability and sustainability, develop inflation-hedging mechanisms, and create flexible payment systems suited to both rural and urban markets. Actuarial expertise has even influenced national policy, with the 2025 Product Approval Framework incorporating significant actuarial input.

"In a sector where emotion meets economics, actuaries are the voice of reason, transforming data into dignity," said an industry analyst.

The insurance industry is now exploring ways to embed inflation hedges into savings and investment products to broaden public trust. But for now, funeral assurance remains the undisputed leader-not because it promises the highest payout, but because it delivers what matters most, exactly when it matters most.
- The Independent

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