Innovating Reinsurance: Insights from Jephita Gwatipedza, Zep Re

Jephita Gwatipedza, COO of Zep Re, discusses the dynamic landscape of reinsurance in Southern Africa, a region marked by diverse challenges and opportunities. From currency depreciation in Zambia to competition in Zimbabwe, localised economic and regulatory shifts shape the market. Yet, Jephita sees room for growth, particularly in micro-insurance and agriculture insurance, with innovation leading the way.

Zep Re’s initiatives demonstrate this potential. Backed by the World Bank, they have developed groundbreaking agricultural products that ensure the sustainability of Africa's farmers, such as pasture coverage aimed at preventing livestock losses. Additionally, collateral replacement indemnities have opened doors to affordable housing finance by bridging gaps in mortgage requirements. Parametric insurance also shows promise, addressing critical risks like flooding. Zambia’s FISIP program, covering over 1.2 million farmers, exemplifies how these solutions can deliver targeted coverage.

However, skills development remains a pressing concern. Jephita highlights Zep Re’s RI Academy, Africa’s largest insurance training program, which has trained over 22,000 professionals. Despite these efforts, the sector continues to lose talent to international markets, underlining the need for continued investment in specialised areas like agriculture, cyber, and parametrics.

Emerging risks such as flooding and economic losses demand urgent attention, with parametric solutions and localised expertise paving the way for sustainable growth. Jephita advocates for regional and international collaboration to unlock untapped potential. By addressing underserved populations, innovating product offerings, and enhancing accessibility, Zep Re is driving transformative growth in the region’s insurance market.

With optimism for the future, Jephita envisions a thriving reinsurance sector, supported by robust training, innovative products, and strengthened local capacities.  

3. Key Points

• Economic Context: Challenges include currency depreciation, regulatory constraints, and competition, particularly in Zimbabwe and Zambia.

• Growth Areas: Micro-insurance, agriculture insurance, and parametric solutions are driving growth.

• Innovative Products: Examples include pasture coverage for livestock sustainability and collateral replacement indemnities for affordable housing.

• Parametric Solutions: Emerging as a key area for risks like flooding, exemplified by Zambia’s FISIP program.

• Skills Development: RI Academy has trained over 22,000 professionals, addressing the skills gap but requiring continued efforts.

• Collaboration: Regional and international cooperation are essential for addressing risks and growing underserved markets.