IPEC on the conversion of policies and pensions to ZiG

Business Writer

THE Insurance and Pensions Commission (IPEC) has notified policyholders of different schemes that it is working on guidelines for the conversion of assets and liabilities in the insurance and pensions industry from the Zimbabwe dollar ZW$ to the new currency- ZiG.

This follows last week’s introduction of the gold and other precious minerals-backed ZiG currency by the Reserve Bank of Zimbabwe (RBZ) which has necessitated the conversion of currency from Zimbabwe dollar to ZiG.

The guidelines are expected to be issued to the industry soon, and IPEC is working to ensure a smooth transition for policyholders and stakeholders in the conversion process.

“Given that there were existing insurance policies and pension schemes denominated in Zimbabwe dollar prior to the announcement, IPEC is working on a Guideline on the conversion of assets and liabilities in the insurance and pensions industry from ZW$ to ZiG. The Guideline will be issued to the industry in due course,” IPEC said in a statement.

IPEC added that foreign currency-denominated policies and pension schemes are not affected by the new developments.

“To that end, premiums and contributions as well as claims and benefits for such policies continue to be in foreign currency in line with provisions of Statutory Instrument (S.I) 280 of 2022.”

IPEC is a statutory body that was created through an Act of Parliament – the Insurance and Pensions Commission Act [Chapter 24:21] to regulate the insurance and pensions industry in Zimbabwe.

The Commission’s principal function is to protect the interests, rights and benefits of insurance and pension consumers and to ensure that there is general stability of the insurance and pensions industry.