Insurance and pensions sector supporting SDGs

Lazarus Sauti

THE insurance and pensions sector plays a critical role in supporting Zimbabwe in the implementation of the United Nations Sustainable Development Goals (SDGs), a collection of 17 global goals designed to be a “blueprint to achieve a better and more sustainable future for all.”

Set in 2015 by the United Nations General Assembly (UNGA) and intended to be achieved by the year 2030, SDGs are part of a UN Resolution called “The 2030 Agenda.”

At a virtual launch of the Insurance and Pensions Commission (IPEC) and National Social Security Authority (NSSA) co-hosted Insurance and Pensions Journalists Mentorship 2020 Programme, IPEC Commissioner, Grace Muradzikwa said the rationale of insurance and pensions is resilience, meaning it overlaps with the SDGs.

She added that the insurance and pensions sector is helping the country in implementing immediate enabling and cross cutting goals comprising SDG 1, SDG 2, SDG 3, and SDG 4, respectively.

“The aim of SDG 1 is to end poverty in all its forms everywhere. Through social protection, insurance can offer a safety net to vulnerable households not to fall into poverty,” she said.

SDG 2 endeavours to end hunger, achieve food security, improve nutrition, and promote sustainable agriculture.

“Agriculture insurance for crops and livestock, therefore, helps to end hunger by bringing stability in production by protecting farmers from the vagaries of the weather and climate,” she said, adding that to achieve this goal in Zimbabwe, IPEC approved Prescribed Assets (PA) status towards agriculture financing worth Z$250 million this year.

SDG number 3 seeks to ensure healthy lives as well as promoting well-being for all at all ages, and “through health insurance, medical aid schemes, and workmanship compensation, households are protected from accident injuries, disability, and high cost of medication.”

The aim of SDG 4 is to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all, and Muradzikwa said, “Insurance companies in the country have educational policies or life savings products that avail money upon death of a breadwinner.”

The insurance and pensions sector is also supporting the attainment of SDG 5 (gender equality), SDG 6 (clean water and sanitation), SDG 7 (affordable and clean energy), and SDG 8 (decent work and economic growth), respectively.

“To promote gender equality and empower all women and girls, there are insurance packages related to gender risks, for example maternity insurance, cover targeting women in Small and Medium Enterprise and small-holder farmers,” said Muradzikwa.

She continued: “We are also encouraging investment in infrastructure for water to ensure availability and sustainable management of water and sanitation for all Zimbabweans.

“To ensure access to affordable, reliable, sustainable, and modern energy for all citizens, we are also encouraging investment in innovative sustainable energy. IPEC, for instance, approved PA status application for Guruve Solar Project worth US$4.75 million this year.”

Muradzikwa also told journalists that her organisation  approved PS Status application worth Z$60 million to finance Small and Medium Enterprises to promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all.

“The commission is also encouraging Micro, Small and Medium Enterprises (MSMEs) investment through protection of assets and access to credit,” she added. “The insurance and pension sector also plays a significant role in driving infrastructure development, as it owns close to 80 percent of all urban real estate in the country.

“Savings mobilisation is the largest source of domestic financing; it has a capacity to drive economic growth and infrastructure development. If these funds are invested over long periods of time it amounts to significant investments.”

NSSA Acting General Manager, Arthur Manase also said his organisation is fighting abject poverty in the country, thereby helping the country to end poverty in all its forms.

“Social protection prevents vulnerable people in rural and urban areas from falling into poverty by lessening the blow of sudden expenses,” he added.

When my grandmother died recently, said Chioneso Mahwite, a funeral policy stood between my family’s impoverishment and stability.

“Insurance shielded us from humiliation and desperation,” she told insure263.co.zw. “It gave us the means to recover from the setback and we are grateful.”

Development practitioner, Fortune Sakupwanya said the protection of people and assets is a critical component of sustainable development, and insurance can directly or indirectly support SDGs.

“Insurance, as a risk protection mechanism, allows people, small and medium enterprises, and the government to build and protect on their assets. This means insurance is a catalyst of sustainable development,” he said.

Sakupwanya added that insurance is a significant tool to accomplish SDGs since it does not only provide a shield to stop the ferocious cycle of poverty, but also helps to rebuild resilience for women, families, business, and infrastructure.

For Insurance Council of Zimbabwe (ICZ) Marketing and Public Relations Officer, Ringisai Batiya, the short-term insurance sector in the country is supporting development programmes through investing in Prescribed Assets (PA) that contribute to the national fiscus.

“Insurance companies also provide risk management advice and services that help in protecting individual and national assets, thereby stimulating socio-economic development,” she said.

Batiya added that insurance companies have Corporate Social Responsibility (CSR) programmes that assist in the implementation of SDGs and targets.

As part of its 2020 programme, for instance, ICZ is working on providing a reliable water source to Ruwa Rehabilitation Hospital, a public health facility that provides respite care, as well as rehabilitation for people with severe injuries with a strong bias to the spinal code as a result of occupational and road traffic accidents.

However, access and affordability of insurance products are some of the challenges that inhibit effective implementation of SDGs in most countries in the Global South.

Speaking at an online event organised by the UN Environment Programme Finance Initiative’s (Unep FI) Principles for Sustainable Insurance Initiative (PSI) and Swiss Re recently, chairperson of the public sector solutions at Swiss Re, Veronica Scotti said the opportunity of digitalisation to access underserved markets, such as poorer populations is the only viable solution to these challenges.