The Sunday Mail
Tawanda Musarurwa
IN a historic development, Zimbabwe is set to get its own mortality tables following successful implementation of a project to develop such country-specific data.
The mortality tables that have been developed are for individual/retail life business; annuity business; pre-retirement pension business; post-retirement pension business; group assured lives; and funeral assurance/micro insurance.
A mortality table is a statistical table that shows how long people of each age are expected to live and how frequent deaths are for a given age or occupation.
Mortality tables are typically used to inform the development of insurance policies and other forms of liability management.
The country’s mortality tables are expected to be launched this month.
The project was carried out by the Insurance and Pensions Commission (IPEC), in partnership with industry players.
The Zimbabwe-specific mortality tables are critical in ensuring accurate pricing, as well as making provision for liabilities, thereby promoting financial inclusion.
In an interview with The Sunday Mail, IPEC commissioner Dr Grace Muradzikwa said: “All these years (Zimbabwe’s) insurance industry has been using mortality tables developed in 1959, coming from the United Kingdom. Some entities have also been using South African tables.
“But now, using local resources and a local consultant, we have developed Zimbabwe-specific mortality tables, which are reflective of our own Zimbabwe mortality dynamics.
“This is going to affect the pricing of products, specifically life assurance and funeral assurance products.”
She further said the regulator is now engaging stakeholders over the impact of the new Zimbabwe-specific mortality tables.
Broad mortality statistics contained in the Zimbabwe National Statistics Agency 2022 Population and Housing Census Mortality and Orphanhood Preliminary Report showed that life expectancy at birth was 64,7 years for both sexes combined, although females had a higher life expectancy (68 years) compared with males (61,2 years).
The report also showed that life expectancy at birth was higher in urban areas (65,5 years) than in rural areas (63,3 years).
Meanwhile, Dr Muradzikwa told stakeholders at the regulator’s annual general meeting that they expect compensation to pensioners for the pre-2009 loss of value — as recommended by the Justice Smith Commission of Inquiry — to commence in September.
