Insurance and Pensions Commission, IPEC of Zimbabwe has assured that compliance with minimum capital requirements of insurers is 92 percent as at March 2021.
Head of IPEC, Ms Grace Muradzikwa, stated that generally, the insurance industry is adequately capitalised except for funeral assurers and life assurers whose capitalisation as at 30 June 2021 stood at 63 percent and 67 percent respectively.
Funeral assurers have remained undercapitalised with the compliance level slightly improving from 38% and 50% to 63% between December 2020, March 2021 and June 2021 respectively
The Commission is transitioning to a risk-based capital framework. In June this year, the Commission launched the Zimbabwe Integrated Capital and Risk Programme (ZICARP) Framework aligning the industry’s capitalisation with the risk profile of entities, which is an international best practice.
It is the Commission`s expectation that the ZICARP Project will address the issue of capitalisation in the sector.