Chronicle Editor
Oliver Kazunga, Acting Business Editor
THE Insurance and Pensions Commission (Ipec) intends to cancel registration certificates for some firms failing to comply with licensing requirements in terms of the law.
Last week, the commission issued a notice indicating in terms of Section 38 (1) of the Insurance Act (Chapter 24:07) four companies will be de-registered.
The firms are: Ambassador Insurance Brokers, Auto and General Insurance Brokers, Hostcare Insurance Brokers, and Revival Insurance Brokers.
“The reason for cancellation of the registration is failure to comply with Ipec requirements which include; non-submission of quarterly and annual returns in violation of Section 64(1) of the Insurance Act (Chapter 24:07); non-payment of annual fees in violation of Statutory Instrument 59 of 2020; and non-payment of quarterly levies in violation of Statutory Instrument 11 of 2020,” Ipec said.
The firms are also being accused of non-payment of penalties levied against the entities in terms of Section 64(3) of the Insurance Act (Chapter 24:07), and failure to respond to various communications from Ipec.
Ipec said, it has to no avail, tried to contact the institutions at their last known business addresses which have been vacated without notifying the commission in line with licensing requirements Section 84A of the Insurance Act.
The institutions are entitled to seek recourse in terms of the Insurance Act.
Meanwhile, Ipec says it is concerned by lack of compliance with minimum capital requirements and prescribed asset ratios by funeral assurance companies.
As at September 30, 2020, five funeral assurers failed to meet minimum capital requirements, which are presently pegged at $62,5 million as prescribed in Statutory Instrument (SI) 59 of 2020.
During the same period, capital positions for funeral assurers ranged from $3,8 million to $104 million.
Nevertheless, there has been steady progress after significant growth in capital base compared to a year earlier.
The overall capital of the eight funeral assurers stood at $422,5 million instead of $500 million. Prescribed asset investments continue to be insignificant as they accounted for only 0,03 percent of the total asset portfolio instead of a minimum prescribed asset ratio of 10 percent as stipulated by SI 206 of 2019.
In nominal terms, investments in prescribed assets increased by 39,7 percent from $150 940 as at June 30, 2020 to $210 820 as at September 30, 2020. – @okazunga.
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