Funeral as­sur­ance acts be­ing re­viewed

Chronicle (Zimbabwe) - - Business - Melody Mashaire Gweru cor­re­spon­dent

ZIM­BABWE is in the process of re­view­ing three Acts un­der the ad­min­is­tra­tion of In­sur­ance and Pen­sion Fund Com­mis­sion in or­der to im­prove funeral as­sur­ance busi­nesses in the coun­try.

Ad­dress­ing del­e­gates at the Funeral As­sur­ance and Ser­vices C o n f e r e n c e in Gweru yes­ter­day, IPEC head of pru­den­tial s up e r v i s ion Pupu­rai Tog­a­repi said the process of re­view­ing the Acts, namely In­sur­ance and Pen­sions Com­mis­sion Act, In­sur­ance Act and the Pen­sion and Prov­i­dent Funds Act is at an ad­vance stage.

“Let me also take this op­por­tu­nity to in­form you that the process of re­view­ing the three Acts un­der the ad­min­is­tra­tion of IPEC is at an ad­vance stage, namely In­sur­ance and Pen­sions Com­mis­sion Act, In­sur­ance Act and the Pen­sion and Prov­i­dent Funds Act.

IPEC hopes this de­vel­op­ment will see us giv­ing you an en­abling reg­u­la­tory en­vi­ron­ment to pur­sue your dreams.

“Bring your ideas for­ward and let us work to­gether to de­velop funeral as­sur­ance busi­ness in Zim­babwe,” he said.

He urged the funeral as­sur­ance in­dus­try to strengthen their bal­ance sheets and com­pet­i­tive­ness in the face of global com­pe­ti­tion and new en­trants.

“The Com­mis­sion would like to in­form the Zim­babwe As­so­ci­a­tion of Funeral As­sur­ers mem­bers that soon we will have our own ver­sion of risk based su­per­vi­sion frame­work.

“As has been shared with the in­dus­try dur­ing our var­i­ous as­so­ci­a­tion meet­ings it is pru­dent that we em­brace the new ap­proach to stay afloat.

“The use of ac­tu­ar­ies and rein­sur­ers be­comes crit­i­cal go­ing for­ward in or­der to con­tin­u­ously check on your ca­pac­ity to un­der­write more busi­ness.

Reg­u­la­tory cap­i­tal will go down while giv­ing way for eco­nomic cap­i­tal.

“Mem­bers there­fore should self-as­sess on their ca­pac­ity to re­tain risk or rein­sure,” said Mr Tog­a­repi.

He en­cour­aged funeral as­sur­ance in­dus­try to con­tinue to seek ways to meet chang­ing in­sur­ance clien­tele and its needs.

“One of your strate­gic goals should be mi­cro in­sur­ance.

The lower end of the mar­ket has re­mained unin­sured yet it is the real in­sur­ance seg­ment.

“They have the in­sur­ance needs, the num­bers as well as the com­bined re­sources for shar­ing risk.”

The, con­fer­ence which will end to­day is be­ing at­tended by sev­eral African In­sur­ance com­pa­nies in­clud­ing South Africa, Cameroon and Kenya.

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