News Africa25 May 2020

Zimbabwe:Insurance sector pushes for US$-denominated policies

25 May 2020

The insurance sector has reportedly lobbied the industry regulator to consider the reintroduction of US-dollar denominated policies in a bid to restore value and stability, as the Zimbabwean dollar collapses.

Zimre Holdings (ZHL) group company secretary, Lovemore Madzinga, said during a presentation, “Due to the depreciating local currency against the US dollar, the company is experiencing an increase in the demand for cover in harder currencies.

“The industry is working with IPEC (Insurance and Pensions Commission) to reintroduce US-dollar denominated policies.”

Most insurance policies were denominated in US dollars before Finance Minister Mthuli Ncube moved to outlaw the use of foreign currencies in 2019.

Market watchers thiugh warn that a reintroduction of US-dollar denominated policies would still not inspire any confidence among locals who have lost millions in the past due to a number of policy changes.


 

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