Appreciate implications of Ipec Amendment Bill’

THE Insurance and Pensions Commission Amendment Bill is a game changer as it introduces key reforms that will reshape the billion-dollar industry, a local law firm has said.

The Bill, gazetted at the end of last month, will result in the creation of a policyholder and pension protection fund and prescribes that medical aid societies must fall under the Insurance and Pensions Commission (Ipec) purview. Medical aid societies are currently regulated by the Health and Child Care ministry.

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Over the years, the commission had no power over medical aid societies as well as the National Social Security Authority.

But the Bill has expanded Ipec’s regulatory powers to include medical aid societies, ensuring these entities are subject to the same regulatory oversight as insurers and pension funds.

In addition, the Bill grants Ipec the authority to approve service providers such as actuaries, asset managers and credit rating agencies operating within these sectors, enhancing accountability and operational standards.

Robert Phiri, a partner at Mugadza and Muvingi legal practitioners, said the Bill proposes far-reaching changes.

“For the first time, Ipec’s regulatory powers are expanded to include the oversight of medical aid societies, ensuring a more comprehensive regulatory framework. The Bill mandates the maintenance of asset registers for all regulated entities, including insurers, pension funds and medical aid societies, with a requirement to notify Ipec 14 days before disposing of any assets,” he said.

“The creation of a Policyholder and Pensions and Provident Fund Members Protection Fund, reflect a strong focus on consumer protection. The introduction of an appeals mechanism further strengthens transparency and accountability, providing a safeguard for those who may feel aggrieved by Ipec’s decisions,” Phiri said

As the regulatory landscape evolves, Phiri said all those operating in the insurance, pensions and medical health sectors must appreciate the far-reaching implications of the changes proposed in the Bill.

A major provision in the Bill mandates the maintenance of asset registers for all regulated entities, including insurers, medical aid societies and pension funds.

“These entities will now be required to notify Ipec 14 days in advance before disposing of any asset listed in the register. These changes, along with the establishment of a Policyholder and Pensions and Provident Fund Members Protection Fund, reflect a stronger focus on governance, consumer protection and the overall stability of the sector,” Phiri said.-newsda