Chronicle Editor
Prince Ngwenya, [email protected]
THE Insurance and Pensions Commission (IPEC) has suspended Sunset Funeral Assurance Company from writing new business.
The decision, which went into effect immediately, was prompted by the discovery of substantial compliance and governance deficiencies during an onsite inspection.
In a statement, IPEC said it is closely monitoring the implementation of the Corrective Order, with the aim to safeguard the interests of policyholders.
“The Insurance and Pensions Commission (IPEC) advises the public that it has suspended Sunset Funeral Assurance Company from writing new business with immediate effect.
“The decision was arrived at after IPEC conducted an onsite inspection on the entity in terms of Section & (b) of the Insurance Act (Chapter 24:07], which empowers IPEC to supervise the activities of registered insurers with the objective of ensuring the protection of policyholders.
“The Inspection revealed significant compliance and governance deficiencies, leading to IPEC issuing a Corrective Order to Sunset Funeral Assurance Company.
“Among the conditions of the Corrective Order is the suspension of the entity from writing new business while it addresses the identified areas of regulatory concern within the prescribed timelines,” said IPEC.
IPEC assured existing policyholders that they will not be affected, as the company has the capability to continue managing their accounts.
“To ensure existing policyholders are not prejudiced during this period, Sunset Funeral Assurance Company is allowed to continue managing the existing business so that current policyholders continue to receive services.
“Meanwhile, IPEC will continue monitoring the implementation of the Corrective Order by Sunset Funeral Assurance Company to ensure that the observed deficiencies are resolved for the protection of policyholders,” read the statement.
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