Insurance companies have been directed to comply with new minimum capital requirements by year end as part of efforts to increase business confidence within the sector.

This emerged at the Insurance Institute of Zimbabwe graduation ceremony in Harare.

Insurance and Pensions Commission (IPEC) CEO, Mr Tendai Karonga told the ZBC New that  the regulatory body has given the insurance firms an ultimatum to raise the required funding by year end in a move aimed at increasing their underwriting capacity.

“We are directing them to comply so that we can unlock more value from them. The minimum capital requirements is critical in restoring confidence in a sector that is still being considered critical for economic development,” he said.

Insurance Institute of Zimbabwe President, Dr Edward Gomba (pictured) while committed to comply with the directive, they as the insurance industry are however lobbying for an extension of the deadline.

The minimum capital requirements for short-term insurers and funeral assurers have been increased from US$1,5 million to US$2,5 million and life assurers from US$2 million to US$5 million.