Preliminary Impact on the Insurance and Pensions Industry

• Vice President, whilst it may be too early to assess the full impact of COVID 19 on the insurance and pensions industry, preliminary indications have pointed to the following:-

1. Huge reduction in investment income from real estate – as you may be aware, the insurance and pensions industry controls about 80% of commercial real estate in most urban and peri-urban centres. To date, 70% of the industry’s assets are invested in real estate. Given the closure of businesses during the lockdown and its impact on business, the industry is anticipating a serious reduction in investment income as tenants fail to pay rentals on account of business closure. We have already had submissions from some of the pensions fund citing the impact on rentals and calling for pensioners to be treated as a vulnerable group eligible for support;
2. The pandemic has also affected the labour market, which has a bearing on pension contributions in the short-to-medium term. As such, inflows to pension funds in the form of pension contributions will be adversely affected by the pandemic;
3. Slowdown in infrastructure development and other projects of national importance due to reduced incomes as the industry is a key strategic investor in such projects;
4. Pensioners are directly and indirectly affected as the pandemic is negatively affecting investment return. The situation has been exacerbated by inflation developments, as the year-on-year inflation for March 2020 stood at 676%.
5. Some reduced revenues as policyholders reduce covers as a response to the reduced economic activity during the lockdown period; and
6. At the same time the sector is still weighing the possibility of claims from policyholders with business interruption policies.
7. Having said this, Hon VP , the pandemic has exposed gaps in cover as the indications are that most business operators did not have cover for business interruption covering pandemics. This will be a learning point for the industry, and business operators and I am sure that based on this experience, there will be efforts to make such cover available in the future.

Measures by IPEC

• The Commission worked with the industry

Ipec allows for USD payments for Zimdollar policies

Staff Writer

HARARE, The Insurance and Pensions Commission (Ipec) has said as part of measures to mitigate financial vulnerabilities caused by the novel corona virus, policyholders may now pay their insurance premiums I foreign currency using free funds at the prevailing rate on the date of payment.

“This means that in respect of policies that are

Equities and investment property accounts for 71% of self-administered funds’ assets

Staff reporter

EQUITIES investments and investment property at $4.06 billion accounted for 71,59% of the total asset base for Self-Administered Funds for the year ended December 31, 2019.

The Insurance and Pensions Commission (Ipec), in its quarterly (Q4) pensions report said the quantum of investment in these two

Pension funds key to reignite Zimbabwe’s infrastructure development

HARARE – Without sound infrastructure development such as roads, rail, ports and energy and social infrastructure development the country stands little chance of jumpstarting the economy.

For asset owners such as pension funds, which have assets of over Z$10 billion under management, infrastructure development offers an attractive

Unrealised gains/ currency reforms boost short-term insurer’s earnings

Staff Reporter

HARARE, THE short-term insurers 2019’s after tax profit increased 766,99%  to $359,2 million compared to $41,47 million in 2018 mainly driven by movements in unrealised gains as well as currency reforms.

Ipec in an industry report, said there was a slight movement in the combined ratio for the short-term insurers

Insurance Council of Zimbabwe (ICZ) ploughs back to community

Staff Reporter

HARARE, The Insurance Council of Zimbabwe (ICZ) has said organisations should value social responsibility programmes which brings positive changes to beneficiaries.

ICZ chairperson Panganai Sanangurai, said the association takes seriously the role of being a socially responsible, and every year identify a community in need

Self-administered funds records $2,68 billion surplus in 2019

Staff Reporter

HARARE, Self-administered funds recorded a financial surplus of $2.68 billion for the 12 months ended 31 December 2019, reflecting a nominal increase of 527.16% from $427.80 million for the same period in 2018.

IPEC in its quarterly report for the 4th quarter 2019, said the comparative increase was on account of higher

Deposit Protection Corporation increases cover level

Staff reporter

HARARE, Pursuant to the provisions of section 41(1) of the Deposit Protection Corporation Act [Chapter 24:29], the public is hereby advised that effective 1 January 2020, the deposit protection cover level has been increased from ZWL1,000 (One Thousand Zimbabwean Dollars) to a maximum of ZWL10,000 (Ten Thousand Zimbabwean Dollars)

Insurance and Pensions Apex Council pleads to re-dollarisation

Staff reporter

HARARE, The Zimbabwe Insurance and Pensions Apex Council (ZIPAC) has pleaded with the Finance minister to allow the sector to re-dollarise in the face of a growing informal sector.

Zipac board chair Tassius Chigariro, yesterday told the industry during the inaugural insurance and pensions industry breakfast meeting which 

Government commit to reform insurance and pensions sector

Staff Writer

FINANCE Minister Mthuli Ncube has said government is seized with legal reforms targeted at the legislation governing insurance and pensions and expect three bills to be sent to parliament by the first half of the year.

In his inaugural meeting with industry players, Ncube said the bills have taken too long at drafting stage.

“I