BY NDUMISO TSHUMA
In the world of insurance, companies are becoming crucial in providing coverage to previously excluded communities, farmers, and vendors.
One such company making waves in the industry is Microsure Microinsurance, led by CEO Nkosikhona Ndlovu, who recently shared insights on the significance of insurance and the unique benefits his company offers to its clients.
Ndlovu stated that the company was established two years ago and has been licensed in Zimbabwe to address the insurance needs of individuals and businesses that were left out. Ndlovu noted that insurance plays a key role in driving economic growth, stating that individuals and corporations face many risks daily, making it essential to insure their assets for protection against unforeseen perils.
“It is important to have insurance, but the key question we ask ourselves is how many risks we face as corporations and individuals. We find that your very existence means you’re at risk of many perils, so it is very important for an individual or business to insure its assets so that if a risk occurs, they can recover,” said Ndlovu.
Ndlovu revealed that as part of their offerings, they have packages suitable for people in the informal sector. He added that Microsure Microinsurance customises insurance packages to suit the needs of vendors with irregular incomes, offering affordable premiums starting from as low as 50 to 75 cents per month.
“In the past, insurance has focused on the formalised market, which is someone with a salary, but with the emergence of microinsurance, players are focusing on the previously excluded vendors. We spoke about the vendors who don’t have regular income. We have customised our packages to suit their needs. They can pay monthly, quarterly, or annually. The premium starts from 50 to 75 cents per month, which is affordable. The informal sector is driving growth as we speak,” said Ndlovu.
Addressing concerns about waiting periods, Ndlovu stated that the waiting period for the main insured lives and their families is three months, while dependents outside the nuclear family have a six-month waiting period. He added that in cases of accidental death, coverage is immediate.
“We have two waiting periods. The first one is for the main life insured and their families, which is three months. The second relates to their dependents outside the nuclear family, which is six months. However, in the event of any accidental death, we cover immediately, which means there is no waiting period,” said Ndlovu.
Highlighting the benefits of insurance, Ndlovu stated that Microsure aims to offer highly customised policies that align with individual needs, driving economic growth and market strategies.
“If you look at our tagline, ‘More Than Insurance,’ we want to drive innovation, creativity, and agility. We think that the current players have done very well. The insurance sector is solid, with pioneers who have driven it to where it is now. As Microsure, we are not reinventing the wheel, but we have come up with highly customised policies that meet individual needs, drive economic growth, and excite the market. For example, with our funeral cash plan, we allow our clients to pay when they can, even if there are lapses in payment. We have very flexible terms that account for the unpredictable incomes of our clients,” said Ndlovu.
He also assured clients that Microsure accepts payments in various currencies, including the Zimbabwe Gold, South African Rand, and US Dollar. However, he added that claims are settled in the currency received.
“As Microsure, we are very happy that the Zim dollar has brought stability, clarity, and fluency to the economic fundamentals in the country. We accept any currency, whether it’s the Zim dollar, the rand, or the US dollar. The claim is paid in the currency received by Microsure. In simple terms, if you pay in Zim dollars when you claim, we will pay you in Zim dollars,” said Ndlovu.
Ndlovu stated the company’s maximum payout limit of US$2,000 for all clients, as mandated by the Insurance and Pensions Commission.
“When it comes to cash, we believe that cash is king. In the event of a family member’s death, you may find that a family member has been hospitalised, or children are still going to school, so there is a limitless need for cash. We cover that gap through regulation by the Insurance and Pensions Commission. Our maximum payout is US$2,000, which can do a lot,” said Ndlovu.
Ndlovu added that they are committed to community partnerships, citing collaborations with organisations like the Bulawayo Progressive Residents Association (BPRA), which provides insurance packages specific to residents.
“The concept of Zibuthe is popular and well-known in Bulawayo, so we are not reinventing the wheel; we have just formalised the arrangement. We have partnered with the Bulawayo Progressive Residents Association to offer packages specific to the residents of Bulawayo. This is a concept we are spreading to other towns, and we have done a lot of groundwork. We believe this is an opportunity for all communities to have dignity and insurance cover,” said Ndlovu.
