The life assurance sector in Zimbabwe recorded a significant increase in insurance revenue for the nine months to September 2025, but faces structural challenges including a heavy reliance on funeral policies, high rates of policies not taken up, and persistent lapses, according to the latest report from the Insurance and Pensions Commission (IPEC). The report, detailing the performance of the country’s 12 direct life assurers, shows the industry is dominated by a few key products and players, raising concerns about market concentration and consumer protection. Direct life insurers generated total insurance revenue of ZWG4.59 billion, approximately US$172.05 million, a 39 percent increase from the US$123.77 million recorded in the same period in 2024.
Foreign currency-denominated revenue accounted for 55 percent of total insurance income, down seven percent from the previous period’s 62 percent, mainly due to exchange rate stability. “Heritage Life and Nhaka Life failed to submit their mandatory foreign currency reports. The Commission urges industry players to submit all required reports on time to avoid regulatory sanctions.” Funeral assurance and group life assurance continued to be the primary sources of income for the life insurance sector, together accounting for 82 percent of the total revenue.
The share of revenue generated from funeral assurance and group life assurance is steadily rising, affecting the market share of traditional life assurance products. IPEC noted that a “notable trend in the life insurance industry is the shift from traditional long term products towards predominantly renewable annual policies.” This change is especially clear in funeral assurance and group life assurance policies currently available. This practice raises regulatory concerns about its compliance with the Funeral Directive’s objectives, particularly regarding the level of policyholder protection,” read the report.
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As a result, the industry is strongly encouraged to strictly follow the rules set out in the Funeral Directive. “Nyaradzo Life Assurance Company holds the leading position in the life assurance sector with a 39.27 percent market share, largely driven by its predominant revenue from funeral assurance policies,” the report states.
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