IPEC says forex insurance business surges to US$146 million

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By Alois Vinga

FOREIGN currency denominated insurance business surged to US$146 million in 2022 alone, signifying a 56% increase in the comparative period, the Insurance and Pension Commission (IPEC) has revealed.

The latest figures confirm the widespread adoption of the US$ as a transacting medium in the economy as alluded to in the 2023 Monetary Policy Statement by the Reserve Bank of Zimbabwe (RBZ).

Generally, the adoption of US$ policies is seen as a hedge against uncertainties and many are resorting to the strategy in order to secure solid investments.

Speaking to media practitioners during the launch of the 2023 Insurance and Pensions Journalists Mentorship Program,  IPEC commissioner, Dr Grace Muradzikwa said the sector has registered significant growth in both Zim$ and the US$ denominated portfolios.

“Foreign currency denominated business increased to US$146 million as at December 31 2022 up from US$92 million from December 2021 signifying a 56% growth.

“In the local currency segment, a total ZW$173 billion was realised during the same period up from ZW$ 38 billion recorded in the comparative period to record a nominal growth of 353%,” she said.

The combined asset base signifying the assets bought using the funds currently stands at ZW$392 billion up from ZW$113 billion recorded in the comparative period.

The architecture of the fund currently has a total 981 registered funds, 504 active funds, 504 and 932 236 members.

 “The Insurance and Pensions industry is key for risk mitigation, social protection and economic development and the media plays an important role in demystifying insurance and pensions.

“Let’s all play our part to ensure that we have a sustainable insurance and pensions industry,” added Muradzikwa.