The Insurance and Pension Commission has deregistered 61 more insurance firms that were operating without compliance to stipulated regulations in a moveÂ aimed at protecting the interests of the insuring public and companies.
Following a crackdown onÂ unlicensed insuranceÂ companiesÂ in Harare a few weeks ago which resulted in 18 firms being deregistered, the Commissioner of Insurance andÂ Provident Funds has widened the process to cover the whole country.
According to the latest information released by the Commission this week, 61 firms around the country have been directed to stop operations after it emerged that they had failed to comply with the required capital regulations.
The insuring public has urged government to restore confidence within the industry.
â€œWe just need the commission to exercise the duties for the benefit of the insuring public.
â€œWe are tired of being shortchanged by these insurance companies and we welcome this move as it will ensure that these companies comply with the required regulations,â€ some members of the public said.
Of the 61 deregistered insurance firms, 12 are short term insurance companies, 27 insurance brokers, 11 life assurance companies, 6 reinsurer entities and 5 funeral assurance companies.
Established or listed insurance firms have survived the crackdown process as they boast of adequate capital reserves.
In terms of the prescribed minimum capital requirements, insurance firms are required to have reserves of US$300 000, reinsurance firms US$400 000 and funeral assurance firms US$500 000.
However, newly established firms are failing to comply with the new rules which requireÂ companiesÂ to invest half of their minimum capital in properties which can be sold to pay customers if a firm fails to meetÂ the claims.