When Insurance and Pensions Commission (IPEC) Commissioner Grace Muradzikwa labeled the funeral assurance sector as the weakest link in Zimbabwe’s insurance market, she wasn't just issuing a regulatory warning—she was standing up for the ordinary citizen.
For too long, the funeral assurance industry has been handled with kid gloves. This leniency must end. For low-income families, a funeral policy isn't a luxury investment; it is a critical social safety net designed to guarantee dignity during bereavement. When a provider fails to meet reporting deadlines, ignores statutory investments, or suffers from weak governance, they aren't just breaking corporate rules—they are actively jeopardizing the hard-earned money of vulnerable policyholders who have faithfully paid their premiums for years.
Industry players who claim IPEC’s stricter sanctions and intensified inspections amount to "harassment" are missing the point. Regulation is the bedrock of public trust. Once that trust evaporates, getting it back is a brutal, expensive uphill battle. Furthermore, the "it's too hard to comply" excuse no longer holds water. Other sectors—including life assurers, pension funds, and even smaller micro-insurers—have comfortably surpassed IPEC’s compliance benchmarks.
IPEC’s aggressive stance, alongside its newly acquired garnishee powers to claw back missing pension contributions from defaulting employers, deserves full public backing. It is a necessary intervention to restore discipline, enforce accountability, and ensure that when a family grieves, the safety net they paid for actually catches them.
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Shifting from "Punitive" to "Productive": How South African Insurers Reward Loyalty
To survive regulatory pressure and rebuild public trust, Zimbabwean funeral assurers could look south. In South Africa, the funeral insurance market is highly competitive, and providers actively incentivize clients to stay compliant by offering cash-back rewards if no claims are made over a specific period.
Instead of just taking money every month, these policies reward clients for staying healthy and keeping their policies active:
| Insurer | Reward Structure | How It Works |
|---|---|---|
| AVBOB (Cashback Funeral Cover) | 100% Cash Back Every 5 Years | If the policyholder goes five consecutive years without making a claim, AVBOB rewards them with a cash payout equivalent to a portion of their premiums to spend on whatever they like. |
| Hollard (Family Funeral Cover) | 20% Premium Cash Back | Hollard rewards policyholders by returning 20% of all premiums paid back into their bank accounts after every five claim-free years. |
| Standard Bank (Flexible Funeral Plan) | 10% Premium Cash Back | Offers an optional benefit where the policyholder receives 10% of all paid premiums back in cash every 5 years just for keeping the policy active and paid on time. |
| Old Mutual & Sanlam | Loyalty Cashback Add-ons | Both providers offer structures where a percentage of paid premiums are paid directly to the client on their 5-year "cashback anniversary," shifting the perception of insurance from a "grudge purchase" to a rewarding financial habit. |
The Takeaway: Embracing these types of consumer-centric reward structures could help Zimbabwean funeral assurers improve their financial liquidity, encourage timely premium payments, and organically mend the trust gap currently being policed by IPEC.
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