IPEC de-registers two firms

The Insurance and Pensions Commission (IPEC) yesterday said it has de-registered two insurance firms, Heritage Insurance and Excellence Insurance for failing to meet the mandatory minimum capitalisation of $1,5 million.The two non-life insuring firms had been suspended from issuing and renewing policies early this year. IPEC commissioner, Manette Mpofu announced the de-registration of the two firms.

“It is hereby noticed that in terms of section 23 of the Insurance Act (Chapter 24:07), the following insurance companies have had their certificates of registration cancelled: KFMS Insurance Company, Heritage Insurance Company of Zimbabwe and Excellence Insurance Company,” she said.

KFMS had its licence cancelled by the insurance regulator in the last quarter. Performance of Zimbabwe’s insurance sector has remained depressed in the past half decade owing to low economic activity and legacy issues following the conversion from use of the Zimbabwean dollar to the multi-currency system in 2009.

As a result of the challenging environment, most firms are struggling to mobilise new funds and in turn increase their capital thresholds. The government has already set new capital thresholds for the insurance sector effective January next year at $5 million from $2 million for life assurers. Short term insurers will be required to have a minimum capital of $2,5 million from the current $1,5 million.

The regulator has since the introduction of the multi-currency regime de-registered several insurers which include Agricultural Insurance Company, Altfin, Jupiter Insurance Company, SFG Insurance Company and Suremed Health Insurance Company. — New Ziana.