Insurance targeting the informal sector

The adoption in 2009 of an economic multiple-currency system has strained the insurance market. In an effort to improve the penetration rate, the Insurance Institute of Zimbabwe (IIZ) has recommended innovations. One of the proposed solutions relates to the informal sector, discarded from the traditional financial system. According to Chomi Makina, the president of IIZ, insurance companies had better follow the footsteps of some neighboring markets by moving towards microinsurance and marketing their policies in rural communities.
Since early January, modest attempts are made by local companies in this direction. In the traditional classes of business, competition remains fierce while significant liquidity problems are crippling the insurance business.