Funeral assurance acts being reviewed
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.