EcoSure customers migrate to US dollar-denominated policies

25 August 2023

EcoSure, a subsidiary of EcoCash Holdings Limited Zimbabwe, says it managed to provide for its clients by paying claims totalling more than $1,9 billion for the full year ended February 28, 2023.

In the 2023 annual report, its parent company said the local currency continued to depreciate and consumers’ disposable income fell, adding to the period’s difficulties.

“However, despite all the challenges the business managed to service its customers through payment of claims of over $1,9 billion and US$59,000,” the company said.

Innovation, which is essential to a company’s sustainability, remains one of EcoSure’s strongest qualities.

“This move resulted in a growth of customer touchpoints by 23 percent from the prior year, which ensured that our customers did not have to travel long distances to get our services,” reads the report.

“The model also ensured the business realised growth in the customers who are converting their policies to foreign currency-denominated policies, with over 35 percent of the total book having successfully migrated to the USD book.”

The firm, a pioneer in cutting-edge insurance products, recently reintroduced USD packages in response to consumer demands and after the Government put rules in place that permitted the insurance sector to give policyholders the choice of products denominated in foreign currencies.

Since then, most policyholders prefer to pay their insurance in foreign currency to avoid frequent premium reviews, whether they are purchasing assets or life insurance.

There has been increased use of the US dollar on the market as more companies pay salaries using the greenback amid local currency liquidity shortages.

The tightening of liquidity results from recent efforts by the apex bank and the Treasury to drain the cash market and stabilise the exchange rate, which was cited as the cause of skyrocketing prices for essential commodities and services.