Published: 06 July 2025

The Insurance and Pensions Commission (Ipec) has ordered all life insurance products to be withdrawn from the market, directing insurers to re-register their offerings only after demonstrating thorough product development. This move aims to improve product relevance and stimulate growth in Zimbabwe's life insurance sector, which has been dominated by funeral insurance products for years.

Speaking during Ipec's seventh annual general meeting in Harare last week, Commissioner Grace Muradzikwa said the recall and re-registration process is designed to "clean up the product offerings" and ensure insurers only market products approved by the regulator.

"We have recalled all life products, and the re-registration process is underway. Insurers will not be allowed to sell any product without reapplying and securing approval," Muradzikwa said. "Ipec is rolling out a new product approval process requiring all products to be resubmitted for authorisation. You cannot market a product we haven't approved."

Life assurance products, including term assurance, endowment policies, pure endowment, and whole life insurance, are fundamental to long-term financial security, offering protection for policyholders' families in the event of death. However, over recent years, funeral and group life assurance products have come to dominate the sector, generating 87% of life insurance business in the first quarter of 2025.

The regulator has expressed concern that the over-reliance on funeral products may hinder the sector's long-term development. Ipec's Q1 report showed 12,121 not taken up (NTU) life policies with projected premiums amounting to ZiG85.43 million (approximately US$3.23 million).

Muradzikwa emphasised that the move was also aimed at curbing mis-selling and ensuring insurers only promote products they can sustainably deliver on.

"Too often, providers blame the macroeconomic environment when they fail to honour commitments," she said. "It's time to be realistic and design products you can actually sustain. If you promise that a premium paid today will yield a benefit in 10 years, you must ensure you can deliver it, rather than continuing to collect money for products you know are unviable. That's why we have recalled all products and require you to reapply."

The commission has noted a shrinking life insurance market, reflected in a decrease in the number of agents selling life products, further underscoring the sector's challenges in attracting new business.

Ipec's Q1 report also revealed 19 complaints lodged by policyholders, six related to life assurance and 13 concerning funeral insurance. The main issues included claim repudiation and dissatisfaction with the low value of benefits.

Muradzikwa pointed out that the prevalence of funeral insurance in the market contributes to these complaints. She called on the industry to diversify product offerings and innovate beyond funeral insurance, which has become the sector's growth mainstay.

"We are concerned about the concentration of life business in funeral products," Muradzikwa said. "Everybody is now going into funeral insurance. We are challenging the industry to come up with relevant products so that everyone is not just chasing funeral benefits. While funeral insurance provides a defined benefit upon death, there is room to develop products that policyholders can relate to more closely."

Previous Ipec reports have highlighted the need for insurers to embrace technology, foster innovation, improve customer experience, and diversify their portfolios. Funeral assurance generated 73% of life insurance revenue in 2023.

The major players in Zimbabwe's life insurance sector by asset distribution include Old Mutual, Nyaradzo Life, and First Mutual Life, which together hold nearly three-quarters of the sector's total assets.

Zimbabwe's insurance industry continues to grapple with the country's prolonged economic challenges, including hyperinflation and currency volatility, affecting overall sector performance.

Ipec remains the statutory body mandated to regulate, supervise, and develop Zimbabwe's insurance and pensions industries to protect policyholders and pension scheme members. The current product recall and re-registration exercise underscores the regulator's commitment to revitalising the life insurance sector and safeguarding consumer interests.
- The Standard

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