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Herald Correspondent
RECENT media reports that the Insurance and Pensions Commission (IPEC) has directed insurance companies and pension funds to start computations for the 2009 loss of insurance and pension values, should have come as good news to the thousands of policyholders and pensioners who were affected by the 2009 currency changes.
The directive follows findings by the Justice Leslie George Smith-led Commission of Inquiry, which established that the conversion of insurance policies and pension funds from the Zimbabwe dollar to the United States dollar was fraught with irregularities, in the process prejudicing policyholders and pension fund members.
The Commission of Inquiry came up with several recommendations, among them, the compensation of policyholders and fund members, legal reforms, regulatory and institutional reforms, and governance reforms at regulated entities.
Government mandated IPEC, as the regulatory authority for insurance companies and private occupational pension funds to spearhead the implementation of the post-inquiry reforms, including the administration of the compensation framework.
However, the compensation of policyholders and pension fund members, has remained a pipe dream.
Therefore, IPEC’s directive to its regulated entities to start computations while waiting for gazetting of the relevant compensation regulations is commendable.
It demonstrates the supervisory authority’s commitment to see the finalisation of this matter.
The insurance and pensions industry is also on record saying they want this matter resolved given its centrality in closing the legacy loss of value and position the industry for the future.
It is a fact that the loss of insurance and pension values in 2009 contributes significantly to the low confidence in insurance and pensions, yet these are key in risk mitigation and social protection, respectively.
To this end, the compensation of policyholders and fund members will go a long way in restoring confidence in insurance and pensions.
It is our expectation that all the relevant stakeholders will work together to see this to fruition if they are interested in the future sustainability of the insurance and pensions industry.
Meanwhile, it is expected that the Attorney General’s Office will expedite gazetting of the said regulations to get the compensation process started, given that it has been protracted.
The timeous disbursement of Government’s pledge of US$175 million to supplement the compensations that will be done by the insurance and pensions industry becomes another key milestone to the expectant pensioners.
Online Reporter