IPEC to regulate NSSA, Medical AID Societies

IPEC to regulate NSSA, Medical AID Societies

Staff Reporter

The National Social Security Authority and Medical Aid Societies and any other persons conducting insurance business will now be subject to regulation by the Insurance and Pensions Commission (Ipec), once amendments to the bill are passed into Law.

This comes after government, through a Cabinet meeting yesterday, approved the Insurance and Pensions Commission (Ipec) (Amendment) Bill, 2020, which also among other things, seeks to strengthen the integrity of the insurance sector and enable it to play its role in supervising the sector.

“The Amendment Bill seeks to ensure the maintenance of a fair, safe and stable insurance and pensions sector for the benefit and protection of policy holders and pension fund members,” read part of the cabinet post briefing statement.

The Bill is also expected to give the Insurance Commission the powers to accredit actuaries, auditors, asset managers, credit rating agencies and other service providers.

“The Commission will conduct investigations where it sees fit for the purpose of preventing contraventions in the insurance sector through provisions of the Bill.”

The Commission may cooperate with any supervisory authorities, including foreign law enforcement authorities or insurance and pensions authorities in investigations, enforcement, co-ordination and harmonization of laws, procedures and standards.

Among other functions, the briefing noted that the Board of the Insurance and Pensions Commission shall ensure compensation is paid to beneficiaries for losses they may incur, and shall determine the level of such compensation, based on the different classes of insurance policies or type of pension or provident fund.

The Commission is also expected to keep and maintain asset registers for insurers, insurance brokers, pensions and provident funds.

Government also approved amendments to the Insurance Bill, 2020 which when passed into law seeks to repeal the Insurance Act and introduce best practices in Zimbabwe’s insurance sector.

The central government noted that the insurance and pensions sector plays an important role in socio-economic development.

“Through the proposed amendments, government intends to strengthen the institutional capacity of the Insurance and Pension Commission and the regulatory framework to create a robust and internationally respected insurance and pension industry regulator,” the government said.

It added that the Bill also aims to synchronize the main acts that guide the regulation of the insurance and pensions industry and address identified deficiencies in the current legislation.