Embrace technology: Ipec

HARARE - The Insurance and Pension Commission (Ipec) has called on the local insurance industry to embrace blockchain technology as a way of improving service delivery.

A blockchain is a distributed digital ledger that maintains a continuously-growing list of data blocks, each containing batches of transactions that are secure from tampering and revision. Blockchain technology is the application of these principals to practical situations.

Blockchain was originally devised for the digital currency, Bitcoin in 2009, but the world is now finding other potential uses for the technology.

Speaking at the launch of Econet’s short-term motor vehicle insurance product last week, Ipec board chairperson Lynn Mukonoweshuro said that the relevance of the technology was a reality adding that the insurance industry should embrace it.

“As Ipec, we are very conscious of the relevance and the positive impact of blockchain technology, and we believe that the time has come for us to embrace the technology as an industry to improve the delivery of insurance services to the population of Zimbabwe,” she said.

The global insurance industry has over the past few years shown considerable interest in integrating blockchain technology into its business processes with security and efficiency emerging as the main themes in the general rationale for such moves.

Leane Kemp, a thought leader in financial technology, says there is “great potential for insurers to use blockchain technology to streamline payments of premiums and claims.” 

Kemp is the chief executive officer of Everledger, a global startup that uses the best of emerging technology including blockchain, smart contracts and machine vision to assist in the reduction of risk and fraud for banks, insurers and open marketplaces.

For customers, insurance contracts are typically complex and difficult to understand. In addition, when accidents or crimes happen, customers can often be faced with a complex and lengthy claims process.

Kemp says: “Smart contracts powered by a blockchain could provide customers and insurers with the means to manage claims in a transparent, responsive and irrefutable manner.”

The Reserve Bank of Zimbabwe, which choked the operations of local cryptocurrency exchanges with its directives in May, has said that it has also put into motion studies to investigate the potential applications of the technology.    

Mukonoweshuro emphasised that Ipec prioritises technology as a key anchor for the industry.

“Our role as the regulator is to establish an enabling environment under which innovation and creativity can thrive. We believe that technology and innovation are now determining the growth and evolution of the insurance industry in Zimbabwe,” she said.

“Our vision as Ipec is to see insurance companies harnessing technology and all our expertise to ensure that Zimbabwe gets the best out of all its assets.

“We are very conscious that technology involvement in the penetration growth of the industry will bring with it to all the players, a reduction in terms of operating costs and a higher return of investment,” she added.

— The Financial Gazette

Comments (3)

Econet zvese , hapana zvinomboitwa zvineyevedza. Dai vari nyanzwi vachipinda mu SA ndomune technology maketi. I mean its OK , ikambani ye 3rd world maketi. Technology hayigumiri mu Zimbabwe kana yakasimba.

Tambaudzoke - 25 July 2018

Kana uchitsvaga ma contracts akakura kana mari mu EU vanotarisa maketi yako in the last 3 or so years. e.g Econets inoita ma solar lights emumba yekumaruwa , that's 3rd world innovation. 1st world innovation , e.g thin-film solar etc. Saka econet hayikwanise kuwana contract mu EU in that sector kana mari , lets say 10Mn Euros. Zvainoita kuzimbabwe ndozvinoitwa nana bhiridha vese pasirese. Just explaining the int'l business basics.

Tambauyende - 25 July 2018

Tech Basics - Nyika yakangwara inofanira kugadzira runhare rwezvinyorwa - indaneti - yayo isina dzimwe nyika. Then yogadzira ma sechi injini ayo asina dzimwe nyika , kozouya mudhuri we indaneti usingabooreki nekunze uye turuzi dzekuboora nekuwongorora zvinhu zvevavengi. Pasina izvozvo hamuna chinhu , hamusati matanga.

Tambauyenda - 26 July 2018

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.