Staff Writer
The Insurance and Pensions Commission (IPEC) and the Zimbabwe Association of Pension Funds (ZAPF) have underscored the importance of finalising the pre-2009 pension compensation matter, which would help in restoring confidence in insurance and pensions.
The Insurance and Pension Commission (Ipec) has halted dissolutions of pension funds pending the conclusion of pre-2009 compensation to ensure fairness among members.
The Justice George Smith-led Commission of Inquiry constituted in 2015 found some policyholders and pension scheme members were prejudiced by the conversion process during dollarization and recommended they be compensated.
The Commission blamed the value erosion largely on poor regulatory enforcement and the demonetisation of the local currency.
From these experiences, policyholders and pension scheme members feel that they were shortchanged, and as a result, their confidence in insurance and pensions is low.
IPEC Commissioner, Dr Grace Muradzikwa, last week convened the IPEC Commissioner’s Breakfast Meeting: A Collaborative Industry Engagement that brings together key industry executives to discuss topical issues within the sector.
According to IPEC, at the meeting, the closure of the pre-2009 pension compensation was among the topical issues raised.
“It is through such interactions that we can align our collective efforts towards fostering a resilient, inclusive, and responsive industry that serves policyholders and pension scheme members effectively.
“As we navigate the ever-evolving financial landscape, it is imperative that we address emerging risks, enhance regulatory compliance, and embrace innovation to strengthen our industry,” said Dr. Muradzikwa in her opening remarks.
Dr. Muradzikwa said IPEC would continue engagements with stakeholders to address bottlenecks impeding the compensation of pension scheme members affected by the pre-2009 loss of value.
ZAPF Director-General Sandra Musevenzo expressed the industry’s commitment to see the pre-2009 compensation finalised.
Insurance Council of Zimbabwe chief executive officer, Donald Muthe, hailed the Farmer’s Basket Agricultural Insurance Product, which has been upscaled to eight rural provinces. More than 20,000 smallholder households have been onboarded for the 2024/2025 agricultural season.
Life Offices Association Vice Chairperson Tendayi Kanjanda appreciated the extension of the multicurrency system to 2030 but implored the government to ring-fence assets that support long-term insurance and pension products to guarantee value preservation beyond 2030.
Insurance Brokers Association of Zimbabwe Chairperson Tawanda Korovedzai hailed the government for the domestication of marine insurance.
The Zimbabwe Association of Funeral Assurers called for policy adjustments to ensure industry viability.
According to Ipec, the annual breakfast meeting serves as a platform for open dialogue between IPEC and industry leaders, reinforcing the Commission’s dedication to enhancing the regulatory environment and promoting sustainable growth within the insurance and pensions industry.
