NicozDiamond claims soar by 258%

NicozDiamond, which was created through the merger of the National Insurance Company of Zimbabwe and Diamond Insurance company, to form what it says is the largest short-term insurer in the country, had an excellent start with gross written premium increasing by 221 percent from $2.7 billion to $8.6 billion and net profit shooting up from $139.1 million to $1.1 billion.

But claims incurred soared by 258.4 percent to $3.1 billion ahead of both gross premium and net premium which increased by 248 percent from, $1.6 billion to $5.7 billion.

Both premiums were however above budget. The company says with inflation at three digits, its biggest challenge is to control both operating and claims costs.

It says because of the worsening economic situation, it is likely that clients will be hard-pressed to afford adequate insurance cover.

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