A NUMBER of insurance firms conducting motor insurance business in Post Office banking halls are set to be pushed out after Zimpost entered into a deal that will see Econet Insurance underwriting business on its premises.
Industry sources told NewsDay that Zimpost acquired a multiple agent status license from Insurance and Pension Commission (Ipec) last month and has roped in Econet Insurance's EcoSure Moovah, a short-term motor vehicle insurance product, as its agent in a deal that will see the postman pocketing 30% of motor insurance premiums.
A leaked Zimpost internal circular (number 2 of 2019) issued in February shows that numerous insurance firms operating from Post Office banking halls will be evicted after securing the multiple agent status.
"Our licence for a multiple agent status will be ready in the next few days. This will empower Zimpost to transact on behalf of all other insurance companies upon signing agreements with them. This is the final stage before the various insurance companies in the Post Office banking halls are asked to move out as the Post Office will be a "supermarket" for insurance products," read the circular.
Insurance firms currently issuing motor vehicle insurance from Post Office banking halls across the country set to be affected by deal between Econet Insurance and Zimpost are Champions Insurance, Triastar, Nicoz Diamond, Zimnat , Sanctuary Insurance, Quality Insurance and Hamilton Insurance.
Efforts to get comment from Zimpost chief executive officer Chief Moyo, Econet Insurance managing director Nathan Chikono and Ipec were fruitless as they did not respond to NewsDay enquiries.
"Zimpost is chasing out these companies because they want to take the business through Econet Insurance. Econet Insurance as an agent with its EcoSure Moovah product will give Zimpost 30% of premiums although the regulated threshold for agents should be 10% and 12,5% for brokers. There is growing fear that Ecosure Moovah wants to create a monopoly over third party insurance," an industry source said.