The Sunday Mail
Business Editor
DOVES Funeral Assurance, a subsidiary of Doves Holdings — the country’s oldest funeral services group, managed to write new business worth more than US$1,2 million during the first six months of the year, a report from industry regulator Insurance and Pensions Commission (IPEC) shows. This helped lift its market share to 36 percent from 28 percent in the same period a year ago.
New individual life business written by the firm rose 45 percent to US$42 000, while corporate business soared by more than 1 600 percent to US$1,2 million from US$69 000 recorded a year earlier.
There are plans to raise the business’s share of the market to 60 percent in the next five years.
IPEC’s quarterly report for funeral assurers for the six-month period ending June 30, 2016, also showed that Doves net premiums written improved by 29 percent to US$6,7 million during the period, followed by First Funeral, which gained 5 percent to US$3,7 million.
The two companies were the only life assurance businesses to register growth.
Ruvimbo registered the most decline in net premiums written, plunging 65 percent to US$138 000 from US$391 000 in the same period in 2015.
Moonlight slumped 11 percent to US$6,4 million.
Doves, Moonlight and First Funeral continue to dominate the sector, underwriting more than 90 percent, or US$16,8 million, of the business in the review period.
Overall, gross premium written for the sector, which measures the total premiums written by an insurer before deductions for reinsurance and commission payouts, rose 2 percent to US$18,7 million in the period.
IPEC, however, believes that there is scope for life assurance businesses to develop products for the lower end of the market as defaults on premiums continue to rise.
There are also concerns over non-compliance to prescribed paper by some of the companies, including reluctance to cede part of the premiums for reinsurance as a way of managing risk.
“For the half year period ended June 30 2016, the industry reported total premium debtors amounting to US$2,9 million with 41 percent of this figure aged over 121 days which is indicative of the general liquidity squeeze in the economy.
“Consequently, we encourage the industry to introduce more affordable micro-insurance products which suit earning capacity for the majority of policyholders both existing and prospective . . .
“The industry continues to show signs that it is viable albeit some challenges relating to premium debtors, capitalisation as well as compliancy to prescribed paper. Various engagements, administrative, and punitive are on course to restore legal and regulatory concerns,” reads part of IPEC’s report.
But Doves seems to have re-discovered its appetite for growth.
The 114-year-old business is currently investing in new parlours, buses, hearses, ambulances and funeral services equipment. About 12 new buses are expected to be unveiled to the local market soon. In an interview with The Sunday Mail Business last week, group chief executive officer Dr Talent Maziwisa, who assumed reins at the company at the beginning of the year, said the company is also reaching out to policyholders who had Zimbabwe-dollar denominated policies that lapsed to help revive them as they are still valid.
“We have policies that became fully paid-up in the Zimbabwe-dollar era, meaning that the policyholder had met their end of the contractual obligations by paying premiums for the term of the policy. We as Doves are happy to inform the public that their fully paid-up Zimbabwe-dollar denominated policies are still valid and they can still access the benefits they signed up for.
“Not only are we honouring fully paid-up policies, but we are inviting those who had Zimbabwe-dollar policies that lapsed to revive their policies and only pay for 10 years,” said Dr Maziwisa.
As part of a new incentive in its recruitment drive, Doves is also making new policyholders eligible for an all expenses paid holiday after contributing for twelve months.
The beneficiary is also entitled to another holiday three years thereafter.
