Govt’s marine insurance plan triggers optimism

Tapiwanashe Mangwiro-Senior Business Reporter

Insurance industry experts and economic analysts have commended the Government’s proposal announced in the 2025 National Budget regarding the domestication of marine insurance business, sparking optimism about increased business to local firms.

Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube’s announcement has been hailed as a transformative step toward strengthening Zimbabwe’s economy and reducing the externalisation of foreign exchange.

“Currently, there is no law mandating local importers and exporters to utilise domestic insurers for marine insurance,” Minister Ncube stated in his national budget statement last month.

“This has allowed foreign insurers to dominate the market, depriving our domestic insurance sector of growth opportunities and depleting our foreign exchange reserves. 

“By domesticating marine insurance, we aim to enhance the local insurance industry and retain premiums within our economy.”

The proposal has been warmly received by key stakeholders, who believe it will bring significant economic benefits. 

Mr Garikai Ncube, an insurance broker, described the move as a potential “game-changer” for the insurance industry.

“Marine insurance is a critical component of international trade,” Mr Ncube explained.

“By mandating local insurers to handle marine insurance for imports and exports, we are not only creating jobs but also building capacity within the domestic insurance sector. 

“This will lead to improved services, competitive pricing, and innovation as local players rise to meet demand.”

Insurance industry expert Mr Vincent Magura echoed the same sentiments, emphasising the potential for long-term growth.

“This policy will foster a robust insurance ecosystem,” Mr Magura noted.

“When premiums stay within Zimbabwe, they contribute to capital accumulation, enabling insurers to invest in other sectors of the economy. This creates a ripple effect, boosting industries such as construction, agriculture, and manufacturing.”

Mr Magura also highlighted the strategic importance of marine insurance in mitigating risks associated with international                 trade.

“Ensuring that local insurers manage these risks enhances their capacity to handle complex claims and builds resilience within the sector. It’s a win-win for businesses and the economy,” he said.

Economic analyst Mr Namatai Maeresera commended the proposal saying it aligns with broader economic goals.

“Retaining premiums locally addresses the critical issue of foreign currency outflows,” Mr Maeresera explained.

“Every dollar that stays within our borders strengthens our currency and supports economic stability. Additionally, a thriving insurance sector attracts investment and contributes to fiscal revenues through taxes and levies.”

Mr Maeresera also pointed out the potential for job creation.

“As the local insurance industry expands, we will see increased demand for skilled professionals, from underwriters to claims adjusters. This not only reduces unemployment but also enhances the overall quality of services available to businesses and individuals,” he added.

But observers raised concerns about the readiness of local insurers to handle the surge in demand.

 However, Minister Ncube assured stakeholders that the Government would support the necessary capacity-building initiatives.

“We are committed to working with the Insurance and Pensions Commission (IPEC) and industry players to ensure a smooth transition. 

“Training programs, regulatory reforms, and public-private partnerships will be key to achieving our goals,” he said.

As Zimbabwe moves toward implementing the new policy, the domestication of marine insurance promises to be a cornerstone of economic transformation.

With broad support from industry experts, analysts, and the government, this initiative could mark the beginning of a new era for the country’s insurance sector and its economy at large.