THE life assurance sector recorded a 24% surge of revenues in Q3 2024 driven by funeral assurance, which contributed 72,56% of the total revenue.
The revenues sat at ZiG1,72 billion (US$123,77 million) for the nine months ending September 2024, compared to the same period in the prior year.
In its Q3 life assurance report, the Insurance and Pensions Commission (Ipec) said the sector’s performance highlighted its resilience in a challenging economic environment, with foreign currency business accounting for 62% of total insurance revenues.
Group life assurance came second at 14,65%, while other products, including endowment plans and whole life policies, made up the remaining 12% of revenue.
The top five players — Nyaradzo Life, Doves Life, Zimnat Life, Old Mutual Life and First Mutual Life — generated a combined ZiG1,4 billion (US$101,06 million), accounting for 82% of the sector’s revenue.
“Nyaradzo Life continues to dominate the life sector, with funeral assurance emerging as the main product sold, accounting for 72,56% of total revenue,” Ipec stated in its 2024 Q3 life industry report.
“This growth underscores the resilience of the life assurance sector in mobilising long-term savings.”
Despite these gains,Ipec said challenges persisted with 94 642 policies classified as Not Taken Up (NTU), representing potential revenue of ZiG532,17 million.
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Old Mutual Life recorded the highest number of NTUs at 69 044 policies, followed by Econet Life with 13 752.
The sector’s lapse ratio, however, improved to 4,83% from 11,53% in 2023, signalling better policy renewals despite ongoing affordability challenges.
Ipec emphasised the importance of addressing policy lapses and NTUs through enhanced customer onboarding and product innovation.
“Policy lapses result mainly from affordability issues and changes in policyholder circumstances. Insurers must communicate effectively with clients to mitigate cancellations,” the commission noted.
The life assurance sector remains pivotal in financial intermediation and mobilising long-term savings.
However, its continued success will depend on rebuilding policyholder confidence and expanding innovative product offerings.
