A senior official at the Insurance and Pensions Commission (IPEC) in Zimbabwe has told local insurance companies that blockchain solutions should be employed as an answer to the industry’s problems.
Reports coming from local media sources say that the issues within the insurance industry amount to a lack of universal access to both insurance policies and pensions, resulting in financial exclusion throughout the country.
The chairman of IPEC, Lynn Mukonoweshuro, argued that blockchain could provide a much-needed modern update to the antiquated methods of insurance delivery that relies completely on brokers and agents; she cites this old system as one of the main failures of the industry.
With a blockchain strategy, Mukonoweshuro claimed, insurance companies would be able to service “the digital customer”, a trending target in the country for businesses. She called for the industry to ”embrace” blockchain, and use it to provide insurance to the wider population of Zimbabwe. ”These technologies provide new ways to measure, control, and price risk, engage with customers, reduce cost, and expand insurability,” she added.
Blockchain is already being applied on a global scale by insurance companies, which have praised the improvements it brings in areas of risk management, transparency, and accountability. The technology is being commended for its potential to bring an entirely new level of trust and security to insurance.
One insurance company in Zimbabwe, Marsh, already uses blockchain for proof of insurance purposes. Marsh agrees with Mukonoweshuro’s arguments in favor of rolling out the technology across the sector and believes that the process of issuing and storing insurance certificates can be completely transformed into a ”streamlined and transparent” practice with the help of blockchain.
Modernizing insurance in the African nation will be enabled by IPEC funding that will target updating technology and pursuing financial inclusion in particular.
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