Published: 03 April 2014

Zimbabwe's economic slowdown has resulted in the insurance sector annual growth decreasing to 8.16% in 2013 compared to 22.04% a year earlier, according to data disclosed by the insurance regulator.

This comes as the country's economy, which recorded an average growth of 8.5% in the period 2009-2011, but slowed down in 2012 and 2013 to 4.4% and 3.2% respectively, is currently facing a multiplicity of constraints that include low capital inflows, liquidity challenges, and high cost of utilities, old equipment, expensive funding, raw material shortage, energy crisis and poor infrastructure.

The Insurance and Pension Commission in its latest report noted that the decline in the economic activity in the country also resulted in two short-term insurance companies failing to meet minimum capital requirements.
- dailynews

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