IPEC seeks to restore confidence in insurance pensions industry
Staff Reporter
HARARE- GRACE Muradzikwa, the IPEC Commissioner, has said one of the commission’s 2020 strategic objective was to restore and build confidence in the insurance and pensions industry following loss of value by consumers.
She was speaking at a graduation ceremony for the 2019 class of the IPEC Journalism Mentorship Programme held in partnership with ZimSelector And NSSA.
“This strategic objective was set on the back of declining consumer confidence, particularly in life insurance business following the episodes of loss of value experienced in the last decade,” she said.
Pensioners and insurance holders lost quadrillions of their Zimbabwean dollar investments during the process of conversion of the Zimbabwe dollar to the United States currency.
This was supported by the Commission of Inquiry into the Conversion of Insurance and Pension Values from the Zimbabwe dollar to the United States dollar, which said most of their Zimbabwean dollar investments suddenly turned into a few US cents or dollars.
However, Muradzikwa said it is IPEC’s conviction that the objective of restoring confidence cannot be attained without strong partnership with the media fraternity.
“It is, therefore, important that members of the fourth estate partner us in acknowledging the positives being registered in the industry and efforts underway to address legacy challenges affecting consumer confidence,” she said.
She noted that whilst it may take many years to restore lost consumer confidence in the industry, it may also take one sensational and unreliable article to destroy the same confidence.
“Research suggests that media news contribute to market panics and irrational exuberance. In this regard, I would like to acknowledge the positive coverage that we have received after the publication of the quarterly market reports, especially on actual claims paid reflecting the relevance of the industry,” she said.
Muradzikwa also called upon the insurance and pension players to be customer-centric as they roll out their products, adding that restoration of confidence should be at the fore of the 2020 agenda to ensure sustainability of the industry, particularly the risk business of the life sector.
Muradzikwa also said the Commission will continue to build the capacity of journalists so that they can interpret the technical insurance and pension terms and report fairly and critically from an informed view point.
