THE Insurance Council of Zimbabwe (ICZ) is working closely with the Insurance and Pensions Commission (Ipec) to develop frameworks and products that support responsible adoption of artificial intelligence (AI) in the insurance sector.
This comes as insurers, globally, is increasingly embracing AI and machine learning to drive efficiency, enhance risk assessment, reduce fraud, and deliver personalised services.
From automating claims processing to detecting suspicious activity in real time, AI is transforming the way insurers operate.
However, its adoption also raises critical issues around data privacy, algorithmic bias, and governance—particularly in tightly regulated markets like Zimbabwe.
“We are working with Ipec to develop products and frameworks that assess the state of AI infrastructure as well as the governance required for implementation,” ICZ chairman David Nyabadza told Standardbusiness in an interview.
He noted that the high cost of AI adoption made it difficult for individual insurers to implement solutions independently, prompting a collective industry approach.
“As ICZ, we are coming together because for individual companies, it may be too expensive to go it alone,” Nyabadza said.
“That’s why we are investing in research to guide informed, data-driven decisions.”
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ICZ held research awards last week under the theme Harnessing Innovation for a Resilient Insurance Industry, which featured presentations by academics and professionals exploring the use of emerging technologies in insurance.
Topics ranged from digital ecosystems to actuarial models powered by AI.
The annual awards are an initiative by ICZ to encourage research into the application of AI and machine learning in insurance.
It aims to generate practical insights to help the sector navigate technological disruption and foster innovation-led growth.
Nyabadza highlighted that one of the most promising outcomes was the demonstration of local capacity to develop fraud detection algorithms — an increasingly important tool as more policyholders transact online.
“We were pleased to see that we have the ability within the country to develop fraud detection models,” he said.
“That will help streamline processes and give us a clearer picture of the sector’s readiness to implement AI.”
To ensure the project delivers, ICZ has engaged researchers and academics to serve as consultants.
The next phase involves refining the ideas into implementable models and exploring pilot funding opportunities.
“This is just the beginning,” Nyabadza said.
“Research is the input. If a concept proves viable, we are prepared to fund its further development for the benefit of the entire industry.”
Although relatively small, Zimbabwe’s insurance sector is considered one of the most tightly regulated in the region.
Like many markets in sub-Saharan Africa, it faces challenges, including low insurance penetration and the urgent need for digital transformation.
According to Ipec, insurance penetration in Zimbabwe remains below 5%, and innovation is seen as key to expanding access and restoring confidence in the sector.
Consequently, ICZ is prioritising collaboration, research, and regulatory alignment to ensure that emerging technologies like AI are integrated in ways that enhance the insurance ecosystem while safeguarding public trust.
