IPEC demands more disclosures from firms

Business Writer

The Insurance and Pension Commission (IPEC) is demanding more disclosures by pension funds and insurance companies in their quarterly returns submissions.

IPEC regulates local pension funds and insurance companies.

Additional disclosures the regulator will be expecting from the industry include offshore investment, investment in locally listed companies, related party investments, property management fees, investment management fees for financial assets, and investment management fees for private equity,” IPEC said in a circular to members.

IPEC commissioner, Grace Muradzikwa, said the additional disclosures “will enable the commission to monitor compliance.”

Meanwhile, Muradzikwa said last week the insurance sector was being held back by a low penetration rate.

In Zimbabwe, the average insurance penetration rate is 3,6 percent, and only 3 percent in Africa.

“We need to adapt to the fast-changing world and leverage technology to achieve efficiencies and improve insurance penetration.

“For instance, it is a known fact there are more women than men and they are driving the economies,” Muradzikwa is a speech at the Women in Insurance Zimbabwe (WIZ) annual symposium.

“Surprisingly, there are very few products that are tailor-made for women. There are opportunities for us to focus on ourselves and develop relevant products, thereby creating blue oceans for ourselves. “It is also true that we cannot talk about an empowered continent without talking about food sustainability.

“Agriculture’s share of insurance is below 3 percent. Thus, agriculture insurance is low-hanging fruit for all of us as we try to climate-proof agriculture and ensure food sustainability.

“Our efforts should be to encourage relevant products that target vulnerable households.”

In the past few years, Zimbabwe experienced extreme weather conditions including cyclones and recurring droughts, which negatively affected agricultural output.

To avert such disasters and minimise losses, farmers are being urged to start insuring their crops.

According to the Agriculture Marketing Authority, the possible reasons for low take-up among farmers include lack of awareness and knowledge of insurance benefits.