New business written by the life assurance sector for both individual life and group business decreased by 26 percent and two percent respectively in the quarter to September 2017, on the back of Zimbabwe's biting liquidity challenge.

In a report, the Insurance and Pensions Commission (Ipec) pointed out that Zimbabweans were not prioritising life assurance of the back of increasingly difficult economic conditions.

"During the quarter under review the new business written by the life assurance sector for both individual life and group business decreased by 26 percent and two percent respectively. The liquidity challenge is largely responsible for the decrease.

"In terms of competing interests, insurance ranks low on the priority list of customers," Ipec said.

However, an increase of 18 percent was recorded on recurring business for the individual business while a two percent decrease was recorded for group business.