A mere four percent of Zimbabwe’s micro, small, and medium-sized enterprises (MSMEs) have business insurance, according to the Insurance and Pension Commission (IPEC).
The primary obstacles to insurance coverage are high costs, insufficient information about insurance products, and a lack of suitable options.
These findings were presented at a recent training workshop organized by the Insurance Council of Zimbabwe (ICZ) and IPEC in Bulawayo.
The workshop aimed to equip business development officers from the Ministry of Women Affairs with the knowledge to educate SMEs about risk management.
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IPEC emphasized that while MSMEs are crucial to the economy, they often lack access to essential financial services like insurance. These businesses face numerous risks but are ill-prepared to manage them. Moreover, they are vulnerable to personal and financial losses affecting both owners and employees.
To address these challenges, IPEC has taken steps to make insurance more accessible to MSMEs. This includes licensing micro-insurance companies, approving micro-insurance products, and introducing agriculture insurance. The commission also partnered with the Ministry of Women Affairs to develop a micro-pension framework.
The Insurance Council of Zimbabwe highlighted the devastating impact of disasters on MSMEs. These businesses often struggle to recover from losses due to limited resources and a lack of insurance.
The council stressed the importance of risk management training to help SMEs protect their operations and ensure long-term success.
By empowering SMEs with risk management knowledge, the government and insurance industry aim to create a supportive environment for business growth and resilience.
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