eBusiness Weekly
Enacy Mapakame
Listed fintech group — Cassava’s insurtech services has been rated among Zimbabwe’s top 10 insurers, only two years after it was established.
The ranking by regulator, Insurance and Pensions Commission (IPEC) of the service bears testimony of its contribution to the sector whose diverse product portfolio caters especially to the agriculture sector, one of the key economic drivers for Zimbabwe.
“In the recent publication by IPEC, the company was placed in the top 10 insurers in Zimbabwe, which is strong recognition for a new entrant that has been in operation in the insurance industry for only two years,” said Cassava in a trading update for the third quarter to November 30, 2020.
During the quarter, revenue for the Insurtech business grew 131 percent compared to the second quarter. This was on the back of strong growth in the short-term insurance business which registered a 165 percent increase on second-quarter revenues and the company’s high-end comprehensive and diverse product portfolio which spans across all industry segments, with a specific focus on agriculture.
According to the group, the life business recorded a decline in terms of policies underwritten following the suspension of some EcoCash services for premium payments by community groups.
The business says it is in the process of redesigning payment gateways to ensure all its customers have access to the flexible payment options that existed before the suspension of the previous modes of payment.
“The new transaction limits on EcoCash also affected invoices greater than $5 000,” said Cassava.
Overall, the group recorded improved performance during the quarter under review on the back of relaxation of lockdown restrictions which saw increased economic activity across sectors and is upbeat about maintaining the same growth trajectory in the final quarter of the year.
The foreign currency exchange rate and price stability ushered in by the reintroduction of the Reserve Bank of Zimbabwe (RBZ) auction system should work to the group’s advantage.
Said the group: “Business performance in the third quarter has shown some improvement when compared to what we witnessed during the first and second quarters.
“If the economy continues on this positive trajectory into the fourth quarter, we expect to see recovery across all our business units.”
Going forward, management is upbeat the promising agricultural season will be an added advantage for the business and the whole economy.
The group will continue on its strategy to provide a digital one-stop-shop experience for farmers across the crop and livestock production value chains which has resulted in tremendous growth in the Agritech unit.
This is in addition to its drive towards digital transformation for improved efficiencies.
