THE Zimbabwe Association of Funeral Assurers (ZAFA) says it is committed to bridge the information gap regarding funeral assurance, which has resulted in consumers losing trust in the sector.
Speaking at the annual Funeral Assurance and Services Conference in Nyanga yesterday, ZAFA president Patrick Mhuka said insurers and assurers should rebuild their reputations to regain the trust of the general public.
According to Mhuka, the sector is marred by challenges that were mainly fuelled by the COVID-19 pandemic.
However, he said the sector was engaging the Insurance and Pensions Commission to address the challenges going forward.
“The funeral industry has faced numerous challenges and it continues to be battered from all sides due to the operating environment in Zimbabwe and the difficulties our people are facing,” Mhuka said.
“We must project a positive and professional image, reflecting our commitment to excellence and integrity. The public’s perception of our association and its stakeholders is vital to our success.
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“We must engage in strategic relationships, community outreach and marketing campaigns to improve our image and educate consumers. Collaboration among members and regulators is critical in addressing industry challenges.”
He said there was a need for collaboration between the industry members and regulators to bridge the information gap as many consumers lack an understanding of funeral insurance products and services.
“Consumer education will help bridge the knowledge gap, as many consumers lack an understanding of funeral insurance products and services. Rebuilding trust, lost due to financial instability and value loss, is essential,” the executive said.
“We must educate the market on our products, pricing structures and industry credibility. In Zimbabwe, social media has been filled with complaints, largely due to a lack of information. Addressing misconceptions and misinformation will increase confidence and penetration in the insurance market.”
The ZAFA president called on the industry to leverage technology, while working on improving strong governance structures, improved relationships with regulators and transparency.
“The COVID-19 pandemic has highlighted the importance of funeral insurance and coordinated funeral services and leveraging technology will help us reach more people. Our goal is to create an environment where feedback is valued and acted upon,” Mhuka said.
He also called on the sector members to improve compliance with the regulatory requirements.
“Compliance with reporting standards is critical and we must address the challenge of submitting quarterly reports. Collaboration and training will help members overcome these challenges.
“Capital requirements, asset separation and funeral products are costly regulations to implement, especially during this difficult operating environment. We continue to engage with regulators to find solutions.
“Respect for asset ratios is vital and we are exploring suitable assets that comply with regulations. Investing in women and youth empowerment banks, resuscitation, construction and maintenance of government-monitored hospitals, state-of-the-art cemeteries and memorial parks aligns with our business models,” he added
Mhuka noted that ZAFA was in continuous dialogues with regulators to create balanced solutions that satisfy regulatory requirements and ensure member businesses’ sustainability.
“Re-insurance is essential due to increasing cash benefit riders and we must consider it to ensure sustainability. Regarding the funeral directive, we are in continuous dialogue with the regulator, seeking a balanced solution that satisfies regulatory requirements and ensures member businesses’ sustainability,” he said.
The conference is running under the theme Sustainability in a Bani Environment: Funeral Assurance Business Model Redefined.