Life insurance under pressure
The life market is threatened by the loss of interests of pension funds for insurance. This situation is the result of the growing number of companies closing down, which is going to promote the development of informal economy. Pension funds have witnessed a 1% growth over the first ten months of the current year while microinsurance jumped by 36% during the same period.
These figures can only confirm the recent development reported by microinsurance companies. This is, for instance, the case of Ecosure, which was set up by mobile telephony giant Econet Wireless and which has been so successful especially with the insurance product dedicated to funerals (+26% in 9 months).
Over the last three years, life insurance has reported an overall increase of written premiums of 13%. It will, henceforth, try to adapt its offers in order to target the informal sector. Eventually, the company slowed down drastically as a result to the adoption of the dollar currency in 2009, which triggered the departure of many customers.
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