Listed assurer, Fidelity Life Assurance has said their Vaka Yako product has been a success driving business in the first quarter ending March 31, 2023.
Fidelity Life company secretary Ruvimbo Chidora said, “The Vaka Yako product under individual life continues to be the best-selling product with 30 percent of the total policies having been sold for the period to March 2023 compared to 18 percent growth in the same period prior year.”
Vaka Yako is a scheme that allows one to purchase a stand from the pool of residential stands available anywhere around the country.
It is the latest in a series of housing projects undertaken by the listed insurance outfit in the past decade including the Fidelity Southview medium-density residential project in Harare.
Fidelity Life Assurance at the time of launch said the product is a unit-linked investment product with a US$5000 death benefit for active members with all premiums paid in US$ on a monthly, quarterly or yearly basis.
The scheme cuts across the social strata, giving policyholders an opportunity to determine how much premiums they pay, depending on earning capacity, age and other factors.
Under the scheme, policyholders have an opportunity to choose where they want their houses to be built, including in rural communities. The product also covers one who needs to buy a residential stand, build a house or renovate their existing structures.
The investment plan which caters for both urban and rural settlements, has flexible payment options.
Vaka Yako helps to grow funds in a structured savings model which is affordable and guarantees one to own a home, the company said.
According to the company secretary, Fidelity Life has continued to re-orient operations to core business and this saw the life and pensions business continuing to anchor the group in terms of business growth through acquisition of new business and new product development.
“The major driver in the growth of new business was the group business schemes which grew by 6 percent compared to the same period the prior year. Annuities and individual life contributed 35 percent to the growth in new business during the period,” she said.
Despite problems in Malawi, the company said the business in that country has been robust and is helping in hedging against volatility in Zimbabwe.
“The life and pensions business component in Malawi complemented the growth in the Group’s overall business growth and as a foreign asset is expected to continue providing a good hedge against the prevailing Zimbabwe inherent country risk, regardless of the current Malawi economic challenges that might have a negative impact on the business as an investment,” she added.
In their outlook, Fidelity said their business remains optimistic that its robust strategy and resilient brand continue to be relevant for Zimbabweans.
Through partnering digitalization and innovation, the assurer is looking to improve its accessibility and ensure product appropriateness for its clients.