Impact of COVID-19 on the Zimbabwean insurance sector

This report by FSD Africa examines the impact of the COVID-19 pandemic on the Zimbabwean insurance sector as of October 2020. It details the operational disruptions caused by national lockdowns, the challenges of transitioning to remote work, and the resulting pressures on insurance revenues, liquidity, and the regulatory environment managed by the Insurance and Pensions Commission (IPEC).

• The Zimbabwean government implemented a series of lockdown measures starting March 30, including an initial 21-day strict lockdown where flights were suspended and informal markets closed. While insurance was classified as an essential service and exempted from some measures, the sector faced significant operational hurdles.
• Remote work adoption in the insurance sector was hindered by infrastructure and legal limitations. One insurer reported that only 30% of personnel had the resources to work remotely, leading to reduced capacity in underwriting and claims departments. Furthermore, the lack of permitted e-signatures caused remote sales to stagnate.
• The pandemic created financial pressures for insurers, including anticipated increases in lapse rates as customer incomes became constrained and potential declines in investment income from property and equity portfolios, which comprise approximately 80% of assets in the life insurance market.
• The regulator, the Insurance and Pensions Commission (IPEC), responded to the crisis by extending deadlines for regulatory levies and first-quarter returns, and by issuing guidance that allowed policyholders to pay premiums in foreign currency.
• Prior to the pandemic, the Zimbabwean insurance market was characterized by a 34% take-up rate among adults and a penetration rate of 3.6%. The sector consisted of 28SSSS 28 insurers, with 12 in life insurance and 16 in non-life insurance.

APA

FSD Africa (2020). Impact of COVID-19 on the Zimbabwean insurance sector. https://fsdafrica.org/wp-content/uploads/2020/10/Impact-of-COVID-19-on-the-Zimbabwean-insurance-sector-21.10.20-1.pdf

Chicago

FSD Africa. Impact of COVID-19 on the Zimbabwean insurance sector. 2020. https://fsdafrica.org/wp-content/uploads/2020/10/Impact-of-COVID-19-on-the-Zimbabwean-insurance-sector-21.10.20-1.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=Impact of COVID-19 on the Zimbabwean insurance sector |date=October 2020 |url=https://fsdafrica.org/wp-content/uploads/2020/10/Impact-of-COVID-19-on-the-Zimbabwean-insurance-sector-21.10.20-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2020impact, author = {{FSD Africa}}, title = {{Impact of COVID-19 on the Zimbabwean insurance sector}}, institution = {FSD Africa}, year = {2020}, month = oct, url = {https://fsdafrica.org/wp-content/uploads/2020/10/Impact-of-COVID-19-on-the-Zimbabwean-insurance-sector-21.10.20-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }