Insurance Bill to improve regulatory oversight — Ipec
The Insurance and Pensions Commission (Ipec) says proposed amendments to the Insurance and Pensions Commission (Ipec) Amendment Bill are a crucial step towards improving regulatory oversight, transparency and consumer protection.
Gazetted on December 20, 2024, key proposed changes include bringing medical aid societies under Ipec’s regulatory ambit and the introduction of a Policyholder Protection Fund.
Medical aid societies are currently regulated by the Ministry of Health and Child Care;
The changes, to be introduced through the Bill amendments, are meant to strengthen the regulatory framework of Zimbabwe’s insurance and pensions sectors.
The amendments are expected to have far-reaching implications for insurers, pension funds and asset managers.
Ipec, in collaboration with the Parliamentary Portfolio Committee on Budget, Finance and Investment Promotion, last week hosted a workshop in Harare to unpack the Bill.
The workshop provided a platform for legislators, Ipec, the Ministry of Finance, Economic Development and Investment Promotion, and Attorney General’s Office to analyse and discuss the proposed amendments in the bill.
Ipec board chairperson Mr Albert Nduna said the proposed amendments were a crucial step towards improving regulatory oversight, transparency and consumer protection.
“In an era of evolving financial landscapes, emerging risks and increasing consumer expectations, it is essential that the regulatory framework for this strategic industry remains robust, adaptive and in line with global standards,” he said.
He also highlighted that the Bill incorporated recommendations from the Justice Smith-led Commission of Inquiry on the Conversion of Insurance and Pension Values post-dollarisation, which has been a concern for stakeholders.
Mr Nduna said Ipec, which was scheduled to present the Bill to the rest of the parliamentarians, remained committed to working with lawmakers and industry stakeholders to advance the industry.
“The engagements are aimed at enhancing regulatory oversight, protecting policyholders and pension scheme members, and aligning Zimbabwe’s insurance and pensions industry with international standards,” he said.
According to Nobert Phiri, a partner at Muvingi & Mugadza Legal Practitioners in Harare, the amendments grant Ipec authority to regulate industry players that include actuaries, asset managers and credit rating agencies operating within these sectors, enhancing accountability and operational standards.
Among the provisions in the new legislation is that 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,” Mr Phiri said
The chairperson of the Parliamentary Portfolio Committee on Budget, Finance and Investment Promotion, Dr Energy Mutodi, emphasised the Bill’s role in promoting good governance, financial stability and policyholder protection.
“The Bill introduces several key amendments, including the expansion of the commission’s functions, establishment of new governance structures and creation of the Policyholder and Pensions and Provident Fund Members Protection Fund.
“These changes are designed to align our regulatory framework with international best practices while addressing the unique challenges faced by our local industry,” he said.
He further underscored the importance of an informed parliamentary debate, stressing the need to align the bill with international standards to modernise the sector and safeguard policyholders and pensioners.
-herald