CELL Insurance Group is exploring expansion into four foreign markets as part of its strategy to diversify and mitigate risks, according to chief executive officer Isheunesu Makuzwa.
The company, which currently operates in Zimbabwe and Swaziland, aims to reduce dependence on its existing markets.
“We have already entered the external markets by the way. We are in Swaziland. We started an insurance company in Swaziland,” he told businessdigest in an interview.
“We are in partnership with locals. I am currently studying four markets and because I am still at study level, I may not be able to tell you which markets but definitely, my stakeholders have given me an assignment to ensure that by the end of the year, we are clear on which two markets to get into.
“We are the industry leader in alternative risk transfer solutions. So our intention is to dominate the market, but most importantly, grow into the region and later into Africa as a whole, so that we diversify our risk, so that the issues that we are getting from the country, we minimise them from other countries that are operating. This is so that we ensure that our local market gets the best of us. That is our strategy.”
The Cell Insurance CEO highlighted that the mining industry was their forte, giving the sector alternative transfer solutions.
“I can simply tell you that all the mines that matter in this country are within our stable,” he said.
“We give them insurance for their assets, physical assets. We also give them medical aid cover for their employees. With those clients that are all concentrated in a particular location, we also give them medical services, which means we have built hospitals that they use for the wellness of their employees.
- Cell Insurance eyes regional expansion
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“We have three entities. On the short term side we play in the top three. So our market share will be anything around 15 to 20%.
“On medical funding it is unfortunate that we don't have a scientific measure of market share but we are in the top five and I believe our market share will be anything around 8% to 10%.”
Makuzwa said the short-term insurance company was in the top three in terms of profitability.
He acknowledged that the medical aid sector was currently facing significant challenges due to large claims, but emphasised that they were actively implementing various wellness programmes to mitigate these risks.
He expressed optimism about the company's financial prospects, stating, “I want to believe that we are on course to break-even and make a bit of profit for the members”.
Makuzwa also noted that economic volatility hindered their ability to indemnify clients.
However, he was hopeful that the introduction of the new currency, the Zimbabwe Gold, would bring stability and enhance the attractiveness of their offerings.
