All Posts in "Zimbabwe insurers"

Zimbabwe insurers, reinsurers meet 92% capitalisation requirements

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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.

Patoma Admin by — August 30, 2021 in Insurance 0

The government of Zimbabwe enacted a new legislation governing insurance companies and pension funds.

The terms of the regulation enunciate that insurers and pension funds may now conduct business in foreign currencies. The measure has been taken with the aim to protect the sector from hyperinflation.

In 2019, the authorities imposed the exclusive use of the Zimbabwean dollar in local transactions, despite the US dollar-denominated policies.

Having been pressured by local insurers, the Zimbabwean Insurance Regulatory Authority (IPEC) has decided to authorize U.S-dollar policies.

The insurance industry in Zimbabwe continues to offer very limited real growth potential.

The Covid-19 pandemic,though relatively contained in the country, has nonetheless had a major economic impact due to nationwide restrictions onmovement and disruption to trade, deepening Zimbabwe’s recession in 2020 and delaying any prospect of recovery.

High unemployment and informal employment rates mean many households are still excluded from traditional covers while very lowaverage income rates will keep the focus on only the most basic product lines.

Patoma Admin by — December 17, 2020 in Insurance 0