Published: 4 hours ago

The Chartered Governance and Accountancy Institute in Zimbabwe (CGI Zimbabwe) has called for a clear and standardised currency and valuation framework to guide insurance claim settlements under the ZiG monetary regime, amid growing concerns over pricing discipline and claims disputes in the sector.

The call comes in the wake of the Insurance and Pensions Commission (Ipec)'s short-term insurance sector report released in March, which urged insurers to align pricing and deductibles with rising claims inflation and foreign currency-linked cost pressures.

CGI Zimbabwe chief executive officer and secretary, Lovemore Gomera, said regulators and industry players must jointly develop and communicate a transparent framework to remove uncertainty in ZiG-based claims settlements.

"Ipec and the industry must jointly develop and publicly communicate a clear currency and valuation framework for claims settlement under the ZiG monetary system, eliminating the ambiguity that creates valuation disputes," Gomera said.

He added that insurers should ensure policyholders are clearly informed of the real value of cover at every renewal, with sums insured reflecting current replacement costs to address persistent underinsurance challenges.

Gomera said trust deficits in Zimbabwe's short-term insurance sector remain a major concern, citing Ipec 2025 data showing that delayed settlements accounted for 35.2% of complaints, while disputed claims and exclusions accounted for 34.1%.

He said these figures reflect structural weaknesses in the industry rather than isolated operational issues.

Gomera also pointed to repeated currency transitions over the years—from the Zimbabwe dollar to the multi-currency system in 2009, followed by bond notes, RTGS balances, the reintroduced Zimbabwe dollar, and the ZiG introduced in April 2024—as key drivers of valuation uncertainty.

"When a policyholder is not sure what currency their claim will be settled in, or whether the settlement value will reflect the replacement cost of their asset, their scepticism is economically rational, not a reflection of industry malpractice," he said.

According to Ipec, insurance brokers reported gross premiums of ZiG4.16 billion in 2025, equivalent to US$156 million, while net brokerage commissions stood at ZiG608 million (US$23 million). The regulator attributed declines of 3% and 7% respectively to exchange rate fluctuations between 2024 and 2025. 
- newsday

You might also want to read this

• Zimbabwe's currency is undervalued by nearly half
• ZiG delivers record-low inflation
• ZiG annual inflation falls sharply to 19%
• Boost for ZiG as reserves near US$1bn
• Zimbabwe to increase ZiG circulation
• ZiG to strengthen further
• ZiG inflation plunges by 5,000 basis points to 32,7%
• Use of Zimbabwe Gold surges
• ZiG stability spurs Zimbabwe economic recovery
• RBZ maps out 5-year transition to sole use of ZiG