IPEC is concerned with mushrooming unregulated entities

IPEC is concerned with mushrooming unregulated entities

Staff writer

HARARE, The Insurance and Pensions Commission (Ipec) says it is seized with the issue of unregulated entities mushrooming in the cities especially Harare and Bulawayo, in the form of legal aid societies and funeral homes.

Although this could be lost revenue for the regulator, IPEC commissioner Grace Muradzikwa said the regulator was more concerned about the policy holders, who in most cases were being duped of their hard-earned money.

Muradzikwa told Insurance24 on the sidelines of Ipecs 4th Annual General Meeting recently that the number could be well above 400 according to their estimations.

“You can’t regulate what you do not know. Legal aid and funeral homes are most problematic. There are people who are collecting money. We went to Epworth, and there were people who were running mortuaries using generators, sort of burial societies.

“These people cannot afford to pay for established funeral homes, so they put money together and run their things.

“This was so rampant at the peak of the COVID-19 pandemic. The challenge is that they then begin to fight because they are unregulated.

“The numbers are quite big; they can get up to 400 according to our estimates across the country in most cities, especially Bulawayo and Harare,” she said.
At the center of the economic meltdown, people have fallen prey to these entities, as the established entities are beyond the reach of many.
But Muradzikwa said before Ipec could begin to think of revenue, the concern should be about the policyholders.
There have been several cases of people who have failed to get service after paying their money.

“Auditors were saying this could be lost revenue for Ipec, but for us, before we speak of revenue, we need the policyholders who are risking their money.

“We have read the story of teachers who contributed their money, and the people disappeared. You can’t look at it in terms of revenue losses. The first concern should be about the policyholder who is being duped,” she said.