Prioritise treating customers fairly-IPEC Board Chairperson

Prioritise treating customers fairly-IPEC Board Chairperson

 Noah Kupeta 

IPEC Board Chairperson, Albert Nduna

The Insurance and Pension Commission (IPEC) board chairperson Albert Nduna has called upon industry players to treat customers fairly to gain confidence and trust among its stakeholders.

Albert Nduna said IPEC acknowledges that macroeconomic stability and predictability of macroeconomic fundamentals are critical for the thriving of the industry.

Whilst there has been business cycles in the economy over the past two decades, utmost good faith and reasonable expectations remain cardinal principles of insurance and pensions.

“We urge the industry to prioritise Treating Customers Fairly as key principles in their operations.

“The Commission is in the process of finalising the development of a Treating Customers Fairly Framework and a Market Disclosure Framework as part of the Zimbabwe Integrated Capital and Risk Project.

“The two will guide the industry in terms of disclosure requirements on treatment of your customers. Treating Customers Fairly, will also be our theme for next year.

“As the industry, you should remember that without your customers, there is no insurance and pension sector to talk about.

“Therefore, in your operations, always be mindful of the need to treat your customers fairly. Insurers are expected to settle claims timeously and pension funds are expected to meet members’ reasonable expectations,” he said.

In order to achieve this, insurance business have been called upon to comply with Prescribed Asset status, a key concern raised by Finance and Economic Development minister in 2019 Budget statement.

It is important that insurance companies have viable Prescribed Asset status so that they deliver according to expectations.

 

“By now you would have heard the new minimum capital requirements announced by the Minister of Finance and Economic Development in the proposed 2020 National Budget Statement this afternoon.

“Our expectation is that you will comply as this is meant to protect the values of policyholders and pension scheme members,” he said.

 

Nduna further encouraged insurance players to tape into the informal sector and treat them fairly as those in the formal sector.

 

The International Monetary Fund posits that Zimbabwe has an informal sector estimated at over 60 percent of the country’s Gross Domestic Product and worth about US$57 billion.

 

Zimbabweans in the diaspora are said to be earning about US$30 billion per year and sending about US$4 billion back home, a key consideration that should catch the attention of the insurance industry.

 

It is therefore critical that as a business insurance companies look out for cost management; providing quality service; and use of modern technology.

 

More importantly, insurance companies consider aspects of protecting and providing for the future taking into consideration factors such as having a strategy for the informal sector; seek to grow external earnings; keeping abreast with technological changes; and striving to maintain value.