IPEC board, management pledge against corruption
INSURANCE and Pensions Commission (IPEC) Board members and senior management have signed integrity pledges, reaffirming their commitment to fighting corruption, promoting transparency, and upholding accountability within the insurance industry.
This comes following revelations that approximately 30-40 percent of annual insurance payouts are tainted by fraudulent activities, including orchestrated accidents, fabricated death claims, and inflated claim amounts.
Insurance fraud in Zimbabwe, like elsewhere across the world, involves various deceptive practices, including false claims, misrepresentation of circumstances, and even organised crime, impacting the insurance industry and consumers.
However, the pledge may help deter corrupt practices by clearly articulating a zero-tolerance stance against corruption and spelling out the consequences of ethical breaches.
The pledge establishes a clear ethical framework, that guides decision-making across all organisational levels, by setting clear conduct standards and fostering accountability to both internal stakeholders and the broader insurance industry and the public.
Generally, the pledge intends to empower employees to resist and report corruption, providing a clear mandate and protection for those who uphold ethical conduct.
Addressing the IPEC board and management during a sensitisation and integrity pledge signing ceremony in Harare, Zimbabwe Anti-Corruption Commission (ZACC) chairperson Michael Reza said the pledge would go a long way in rebuilding public trust in the insurance sector.
“The insurance industry plays an essential role in our economy by providing security and stability to businesses and individuals alike.
“It serves as a cornerstone of financial resilience, enabling risk management and providing essential protection against unexpected situations.
“Nonetheless, this critical role can only be effectively fulfilled when the industry operates with the highest standards of integrity and ethical conduct,” said Mr Reza.
He said the consequences of such criminal activities and corruption were far-reaching and devastating as fraudulent claims result in high insurance premiums, rendering coverage unaffordable for low-income individuals.
Mr Reza said insurance fraud could lead to the rejection of legitimate claims, leaving vulnerable individuals without essential support, particularly when it comes to critical needs like healthcare
“I am quite aware that in Zimbabwe, corruption within the insurance industry predominantly manifests in the form of insurance fraud. Where insurance clients, in collusion with insurance employees, knowingly make false claims, exaggerate damages, or falsify accidents to gain payouts from insurance companies,” he added.
Speaking at the same event IPEC board chairperson, Mr Albert Nduna said integrity was not just a principle for IPEC but a core value that must permeate every aspect of its daily conduct.
He said the Integrity Pledge marked a sincere promise to uphold ethical standards, and act fairly and impartially, in the bid to solidify IPEC’s reputation for exceptional governance.
“As an institution entrusted with the critical role of regulating and supervising the insurance and pensions industry, integrity is at the core of IPEC’s mandate.
“We recognise that the success of IPEC in safeguarding policyholders and pension scheme members heavily relies on our core values, which are professionalism, accountability, fairness, integrity, and excellence.
“Integrity is not merely a principle we espouse but a value we must embody in our daily functions. It fosters trust, enhances our credibility, and ensures that the decisions we make are in the best interest of the public we serve,” said Mr Nduna.-ebsinessweekl
