Many of Zimbabwe's insurers do not have software to analyse risks associated with their business, a survey conducted by African Actuarial Consultants has revealed.
The survey conducted under the Zimbabwe Integrated Capital and Risk Project (Zicarp), spearheaded by the Insurance and Pension Commission (IPEC), seeks to bring about a more integrated framework that looks at credit, strategic, operational and insurance risks associated with insurance companies. The new framework, to be ready by February 2020, is expected to improve the regulator's oversight of the industry, focussing on risks, according to local media reports.
African Actuarial Consultants managing director, Tinashe Mashoko, said, "At least 62% do not have a software for analysing risks in their business.”
However, the study found that insurance companies are willing to embrace enterprise risk management and cooperate with Zicarp.
While 96% of insurance companies' staff consider risk in their day to day operations, the study revealed that more training is required to enable the employees.
"60% of insurance firms said they hold training, but the positive risk culture needs to be underpinned by regular training, not only at board level but across all members.”
The survey found out that there was a poor understanding of risk by insurance companies’ employees. Of the 25 sampled insurers, 44% indicated that their staff had average understanding of risk which could leave policyholders in danger of failing to get required information from insurance companies. Two of the 25 insurers indicated that their staff had poor understanding of risk.
The survey was guided by four main themes: risk culture, risk governance standards and implementation, risk management processes and actual risk management operations.