EcoSure subscribers have been receiving messages notifying them that the benefits for each and every EcoSure package will be going up in May, as the insurance company tries to maintain the value of their service in an inflationary economy.
The message sent to subscribers reads:
Dear Customer, note that effective 1 May 2020, new EcoSure Cover Benefits will be as follows: Lite $10,000, Basic $20,000, Standard $40,000, Premium $50,000.EcoSure message
The inflationary nature of the Zimbabwean economy will mean this will be a trend as the payouts got raised in December to $5 000, $10 000, $20 000 and $30 000 respectively.
Insurance is a tricky game in an inflationary environment. Why? Well, in an economy with high inflation, the value of money makes it difficult to justify current expenditures on future fixed payments that are rapidly decreasing in value. In addition, the guaranteed rate of return offered under older policies will be inadequate during sustained inflationary environments