Government has considered and approved the amendments to the Insurance Bill, as a measure to facilitate growth in insurance business.
Among the amendments, the Bill seeks to repeal the Insurance Act and introduce best practices in Zimbabwe’s insurance sector, which plays an important role in socio-economic development.
Speaking at the cabinet briefing, Information Minister Monica Mutsvangwa said government intends to strengthen the institutional capacity of the Insurance and Pension Commission(IPEC) and the regulatory framework to create a robust and internationally respected insurance and pension industry regulator.
“Cabinet stressed that in order to guard against insolvency by insurance societies, every registered insurer will now be required to maintain a prescribed level of solvency.
It will now be compulsory for insurance societies to submit financial statements within ninety days of each financial year. The statements must be prepared in accordance with generally accepted accounting practices. All insurers will be required to submit to the Commission an actuarial valuation report which must be harmonized with the relevant audit report,” she said.
Insurers who wish to conduct electronic business must get Commission approval, while the issuance of disability benefits in life policies will be according to clearly spelt out conditions.
“An insurance fund shall not be executable by creditors who are not the policy owners. A registered insurer may not place assets outside Zimbabwe without Commission approval, including on percentages that may be prescribed,” Mutsvangwa said.
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