Management Information Systems

Planning

The Company’s financial statements are audited on a yearly basis by Matamba and Company Chartered Accountants Zimbabwe. The Company operates on a budgetary system with budgets being set and approved at the beginning of each financial year. These are revised every half-year taking into account the performance to date, and prevailing economic conditions and expected performance.

Management accounts are produced by the 7th of the following month and significant variances from approved budgets are analyzed.

Control Monitoring Systems

Clarion uses the following information systems; Pastel Accounting Software, i3ms (an insurance package), Bellina Payroll System, Internet, E-Mail and Call Logging System.

In addition the Finance and Investment Committee at Board policy level deals with compliance of laid down procedures, internal controls and risk management. This Committee also seeks to ensure accountability and proper management of Clarion’s finances. The Chief Executive Officer assisted by the Finance Manager is responsible for enforcing compliance with laid down procedures.

The Company has put in place the following manuals that are used as guidelines by employees in their day to day operations; Accounting and Procedures Manual, Underwriting Manual, ICT policy document, Credit Procedures Manual, Procurement Procedures Manual and Human Resources Manual.

 Five Year Plan – Projected Income Statement

2012 2013 2014 2015
Premium            4,000,000      5,800,000      7,000,000      8,400,000
Reinsurance        (1,440,000)     (1,740,000)     (2,100,000)     (2,520,000)
Net Premium Income              3,360,000          4,060,000          4,900,000          5,880,000
Insurance   Reserves (Increase)/Decrease            (528,000)        (638,000)        (770,000)        (924,000)
Net Earned Premium              2,832,000          3,422,000          4,130,000          4,956,000
Net Claims Incurred        (1,440,000)     (1,740,000)     (2,100,000)     (2,520,000)
Net Commission Paid            (240,000)        (290,000)        (350,000)        (420,000)
Total Costs            (1,680,000)        (2,030,000)        (2,450,000)        (2,940,000)
Technical Result              1,152,000          1,392,000          1,680,000          2,016,000
Management Expenses            (970,000)     (1,100,000)     (1,240,000)     (1,400,000)
Underwriting result                  182,000            292,000            440,000            616,000
Investment Income              420,000          441,000          463,050          486,203
Other income/expenses                  88,000            96,800          106,480          117,128
Net Profit/( Loss) Befor tax                  690,000            829,800          1,009,530          1,219,331
Assumption: To grow the GPW and Net Profit by at least 20% every year.