Zimbabwe is considering new regulations to ensure that local insurance companies are compliant with minimum capital requirements in order to protect the interests of the policy-holders.
The unveiling of the Institute of the Funeral Business Management (IFBM) in Harare saw stakeholders focusing on policies to remain afloat or viable.
It is however the need to ensure that all insurance companies comply with capital requirements in order to restore confidence that is of greater importance, according to the Insurance and Pensions Commission (IPEC) Acting Commissioner, Mr Blessmore Kazengura.
“The confidence levels are not all that good so we are really not all that convinced about the need to increase the uptake of services,” he said.
IFBM Board Chairperson, Dr Edward Gomba said the need for a downward review of the current capital requirements is also needed for the sector to match viability with costs.
“The need to ensure that all is down with a motive to reduce cost becomes of greater interest as we seek to ensure that the sector plays an important role,” he said.
Dr Gomba added that Zimbabwe’s insurance sector also needs to adapt to global standards in order to attract foreign partners who have the capacity to inject fresh capital.
The insurance sector is working on confidence building policies following the devaluation of the pension and policyholder accounts during the hyper-inflationary period that has resulted in a slow uptake of products and services.