eBusiness Weekly
Nelson Gahadza
EcoSure, a subsidiary of EcoCash Holdings Limited Zimbabwe, has seen about 35 percent of its clients migrate to US dollar policies as they seek to hedge against value loss as well as frequent premium reviews.
This trend is, however, not only unique to Ecocash, as the whole industry has been gravitating towards USD transactions as the currency market remains volatile.
In its 2023 annual report, the company said the local currency continued to depreciate and consumers’ disposable income fell, adding to the period’s difficulties.
“The majority of policyholders prefer to pay their insurance in foreign currency to avoid frequent premium reviews, whether they are purchasing asset or life insurance,” the company said.
Ecocash Holdings recently reintroduced US dollar packages in response to consumer demands and after the Government put rules in place that permitted the insurance sector to give policyholders the choice of products denominated in foreign currencies.
The increased use of the US dollar in the market has also been pushed by more
companies, which now pay salaries in US dollars.
The tightening of liquidity in the market is a result of recent efforts by the central bank and the Treasury to drain the market of cash and stabilise the exchange rate, which was cited as the cause of skyrocketing prices for essential commodities and services.
However, the company said it managed to provide for its clients by paying claims totalling more than $1,9 billion for the full year ending February 28, 2023.
“Despite all the challenges, the business managed to service its customers through payment of claims of over $1.9 billion and US$59 000,” the company said.
The group said innovation, which is essential to a company’s sustainability, remains one of EcoSure’s strongest qualities.
“This move resulted in a growth of customer touchpoints by 23 percent from the prior year, which ensured that our customers did not have to travel long distances to get our services,” the company said.
In the life insurance business, EcoSure continued to innovate and add new value-adding products to remain relevant to customers in the fast-changing operating climate.
During the year under review, EcoSure launched the “Dura Pension Scheme” aimed at the informal sector, to ensure broad-based inclusion of all workers in retirement planning.
“We also launched ‘Data Life Cover’, a new product that allows customers to get funeral cover as they purchase Econet data products.
“Bundled services with strategic partners will be key to driving growth in the future, and the adoption of US dollar packages has allowed the business to enhance life cover through assured US dollar benefits,” reads the report.
Moovah, the short-term insurance business, embarked on a distribution network expansion project, which to date has seen the business expand to over 250 locations.
“This has further improved access and convenience for our customers across the country. We are happy with the improvements in the claims process and overall service delivery, as evidenced by the growth in total policyholders,” the group said.
