Bulk funeral companies defiant on minimum capital requirements
Insurance24 Reporter
HARARE, Only three funeral assurers Doves, First Funeral and Moonlight funeral companies were compliant with the $2.5 million minimum capital requirement as at March 2017.
Currently there are 9 funeral assurers with a total capital position of $38 530 000 as at March 2017, which is an improved position from $38 316 000 by December 2016.
According to Finance Minister Patrick Chinamasa’s mid-term budget review statement Doves is capitalized at $20.14 mln, which is however relatively lower than $20.39 mln in December last year.
The company remains the biggest capitalized funeral company amongst the nine, followed by First Funeral at $6.38mln and Moonlight at $4.34mln.
Passion funeral company remains the least capitalized funeral assurer with a capital level of $644 000 followed by Orchid at $708 000.
Vineyard and Ruvimbo are capitalized close to $2 mln at $1.95mln and $1.92 mln respectively.
Chinamasa in the 2016 National budget increased minimum capital requirements for short-term insurers from $1,5 million to $2,5 million and that of life assurers from $2 million to $5 million while funeral assurers will now be required to have a minimum of $2,5 million from $1,5 million.
The performance of Zimbabwe’s insurance and pension sector has largely remained depressed owing to low economic activity, legacy issues emanating from the conversion of insurance and pension policies from the inflation ravaged local currency to US dollar values and liquidity challenges among others.
Funeral Companies
| Company | Capital Position ($) | |
| Dec-16 | Mar-17 | |
| Orchid | 704 000 | 708 000 |
| Doves | 20 391 000 | 20 135 000 |
| First Funeral | 6 736 000 | 6 386 000 |
| Foundation | 863 000 | 918 000 |
| Moonlight | 3 590 000 | 4 348 000 |
| Passion | 808 000 | 644 000 |
| Ruvimbo | 1 835 000 | 1 929 000 |
| Sunset | 1 501 000 | 1 504 000 |
| Vineyard | 1 888 000 | 1 958 000 |
| Total | 38 316 000 | 38 530 000 |
