In Zimbabwe, Kelvin Chamunora innovates insurance services with cows as investment products

In Zimbabwe, Kelvin Chamunora innovates insurance services with cows as investment products

(Ecofin Agency) African realities are often untapped in modern economic systems. By guaranteeing life insurance products from cows, Zimbabwean Kelvin Chamonurwa is paving the way for another way to operate in the sector.

While working in the UK in the insurance industry where he trained, Zimbabwean Kelvin Chamunoura decided to return home to start his life insurance business. He made this decision after realizing that the way Zimbabwe’s economy was presented in the British media differed little from the reality he found. In 2018, he decided to invest in insurance products.

According to the comments made by the site How we made it in AfricaThe first steps in his work took place in a context in which ordinary people lost faith in financial services. Zimbabwe has already gone through a situation where bank customers can no longer withdraw their money from bank accounts, or are normally reimbursed by insurance companies in the event of a claim. ” I realized that they would not be pouring money into a traditional institution and that there was a need to rebuild that trust with a different approach,” He explains.

But in addition to receiving the training that made her an actuary (a statistician and insurance analyst), Kelvin also belongs to a family of entrepreneurs and financiers. His grandparents ran a successful business, and his parents were bank executives. Rising prices in Zimbabwe’s economy have prompted insurance companies to rethink the way they do business. To continue to retain their clients, it was necessary to find for them an investment product that they knew could bring them higher profits than the price increase level.

This is how he came up with the idea of ​​basing his clients’ contributions on cows. Zimbabweans are pastoralists and the idea of ​​owning a herd of cows or bulls is common to the majority of people. Hence, to secure their savings, Nhaka Life Insurance offers investment in these animals. The originality of his offer is that you do not have to invest in a whole cow, you can only bring in enough to own a few kilograms of the animal. Thus, several people can own the same animal and benefit from it collectively. In the mind of the promoter of this insurance company, the guarantee that the cow brings is that it gives birth to a calf every year, thus doubling the value of the investment.

The company uses the financing it receives from its customers to purchase livestock. He withdraws his income according to a predetermined amount on each animal. To date, about 900 head of cattle have been maintained, vaccinated and monitored by veterinarians on a farm. Each investor is provided with insurance that allows him to benefit from compensation in the event of the death of the cow.

Kelvin Chamunorwa explains that when a cow finds it difficult to give birth, it is sold by agreement with its owner(s), and replaced with a new producing cow. In order to give customers confidence, the entrepreneur also organizes workshops to visit farms to demonstrate the systems put in place to ensure the survival and reproduction of their livestock.

Kelvin Chamunoura’s project was somewhat successful. Inflation that reduced the value of savings in the country subsided and life insurance exhaustion emerged from this difficult period with several thousand registered clients. Kelvin Chamonoroa has no intention of stopping at this success. It plans to combine other joint activities in Africa, such as agriculture, to support insurance products for individuals.

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