The government has approved amendments to the Insurance Bill 2020, which seeks to introduce best practices to Zimbabwe's insurance sector and enhance the protection of policyholders.
Information Minister Monica Mutsvangwa said during a post-Cabinet media brief, “Through the proposed amendments, the government intends to strengthen the institutional capacity of the Insurance and Pension Commission (IPC) and the regulatory framework to create a robust and internationally respected insurance and pension industry regulator.”
She said, “The Bill sets out the rules to be followed in merging insurance societies, in the transfer of insurance business to another registered insurer, and in the payment of premiums to the registered insurer whenever an insurance broker receives the premiums from policyholders.”
In addition, the Bill stipulates that every registered insurer will be required to maintain a prescribed level of solvency, according to a report in New Zimbabwe.
Ms Mutsvangwa added, “It will be compulsory for insurance societies to submit financial statements within 90 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 harmonised with the relevant audit report.”
The minister said insurers that wish to conduct electronic business must seek the approval of the IPC while the issuance of disability benefits in life policies will have to meet clearly spelt out conditions.
Furthermore, an insurance fund shall not be executable by creditors who are not the policyowners. A registered insurer may not place assets outside Zimbabwe without Commission approval, including on percentages that may be prescribed, she said.
In the event of currency change, steps must be taken to re-calculate liabilities and assets in line with the new currency, including the actuarial valuation of the insurance business, the Bill says.