Staff Writer 
By Ephraim Chawoneka
IN the insurance industry, credibility has traditionally been measured through one lens of creditworthiness.
Can the insurer pay claims? While this question remains fundamental, it is no longer sufficient.
Today, credibility is being redefined. Policyholders, regulators, and partners are no longer just asking whether an insurer can survive the present. They are asking whether it can sustain trust over decades.
This shift shows a transition from solvency to sustainability. Solvency has served as the backbone of insurance confidence. It reflects an insurer’s financial strength and its ability to meet obligations as they grow over time.
It is measured through:
l Capital adequacy
l Liquidity levels
l Claims-paying ability
l Regulatory compliance
For decades, strong solvency ratios were enough to show the stability. But solvency is, by nature, a point-in-time measure. It tells us where an insurer stands today and it is not about where it will stand tomorrow.
Why only creditworthiness
is no longer enough
The insurance landscape has evolved significantly:
l Climate risks are unpredictable
l Economic cycles are unstable
l Expectations of policyholders are now higher
l The regulatory survey is deeper
In such an environment, an insurer may appear creditworthy today but still remains exposed to structural risks over time. This is where sustainability enters the conversation.
Role of credit rating
in this transition
This shift from solvency to sustainability is not always visible through internal metrics alone. It requires independent, structured evaluation.
This is where institutions like ICRA Zimbabwe play an important role. Instead of focusing only on financial graphs, credit rating frameworks assess:
l Capital strength and its durability
l Earning quality over time
l Risk exposure across different scenarios
l Governance and management effectiveness
l Industry positioning and competitive strength
By doing so, they provide a forward-looking perspective, one that aligns closely with the idea of sustainability.
Building long-term credibility: What insurers must focus on
To move beyond solvency and toward sustainability, insurers need to rethink how they build trust.
1. Strengthening risk culture: Risk management must evolve from compliance-driven to strategy-driven.
2. Investing in data and analytics: Better data leads to better forecasting, pricing, and claims management.
3. Enhancing governance standards: Transparent and accountable leadership builds long-term confidence.
4. Aligning products with real needs: Sustainable insurers design products that remain relevant across economic cycles.
5. Maintaining consistent communication: Credibility grows when stakeholders are informed and not surprised.
The emerging reality
In today’s insurance market, credibility is no longer earned once it is continuously demonstrated.
An insurer that is:
l Solvent with inconsistency
l Capitalised but with poor governed
l Profitable but short-sighted due to which they will struggle to maintain long-term trust.
On the other hand, insurers that embed sustainability into their operations are better positioned to:
l Withstand shocks
l Retain policyholder confidence
l Attract long-term partnerships
Final thought
Solvency answers a critical question: “Can this insurer meet its obligations today?”
Sustainability answers a more important one: “Will this insurer remain dependable in the years to come?”
The future of insurance credibility lies at the intersection of both.
And with analytical frameworks supported by organisations like ICRA Zimbabwe, the industry is steadily moving toward a more holistic, forward-looking definition of trust, one that values not just financial strength, but enduring reliability.
Chawoneka is the chief executive of ICRA Zimbabwe. ICRA is headquartered in Dubai. He is a seasoned ex-banker with over 19 years experience in the sector. He is an Insolvency and Business Rescue Practioner and an ardent practitioner in the field of Credit Rating(s).
