Pensions sector on rebound — Ipec

THE pensions and insurance industry has begun implementing measures that are meant to ensure solid business recovery from the adverse effects of the Covid-19 pandemic.

The same measures also seek to tighten enforcement of compensation of pensioners after most workers lost their savings following the demonetisation of the Zimbabwean dollar in 2009.

At the height of the pandemic, which brought business across the world to a standstill, the sector was prompted to design a business continuity plan to guarantee that pensioners continued receiving their dues.

The plan was successfully implemented and has since seen some pension payout increases of between 400 and 800 percent.

In a recent interview, Insurance and Pensions Commission (Ipec) director pensions, Mr Cuthbert Munjoma, said the business continuity plan yielded results and now the commission was working on getting the industry out of the woods.

“The Covid-19 has had a negative impact on the pensions and insurance sector. We ensured as a Commission that there was business continuity after the declaration of Covid-19 as a pandemic. In fact, the pandemic came as a test on those plans to assess whether they are working and I am glad they are working well,” he said.

Mr Munjoma said the plan supported by the implementation of legal reforms and regulatory measures as per the Justice George Smith recommendations, will help resuscitate the sector.

“We are on the rebound as an industry. Yes, we might have faced some challenges especially prior to 2009 but given the developments in the economy and the regulatory measures particularly after the Justice Smith Commission of inquiry, which recommended a number of reforms, we are now implementing them,” he said.

“We also have a number of legal reforms like the Ipec Bill, the Insurance Bill and the Pensions Bill that are before Parliament, they have been approved by Cabinet and we are likely to see a lot of reforms through those bills.”

The Commission, he said, is also putting in place measures to ensure that funds are being handled and run by people of integrity at the pension and insurance entities.

“We are enhancing our oversight role including the issues of expenses that have been a problem in the Zimbabwe market. We are securing that they are rationalised and reasonable and that they are benefitting the rightful members,” he said.

As part of the measures, Mr Munjoma said pensioners should continue to confirm their existence every year while liabilities should be matched with assets and be a mirror image of those assets, among others.

Mr Munjoma said the industry was also complementing the Government in a number of projects, which is a sign that the industry was on the right track of recovery.

“We have seen renewed interest in private equity as most are investing towards renewed energy, which is in line with the National Development Strategy 1.

“Our industry is also engaging the Government so that they enter into PPPs especially in terms of road rehabilitation and repairs. So, from an investment perspective we can say we are on the right track,” he said.

If well implemented, the recommendations of the Justice Smith Commission of inquiry together with the legal reforms should help the pensions and insurance sector to a strong recovery.-chronicel.cl.zw