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Harare Bureau
The government is soliciting for stakeholder input into the proposed amendments to the legislation that governs the insurance and pension to synchronise the three Acts and update them in line with dynamic regional and international trends.
The three Acts that are up for amendment are the Insurance Act (Chapter 24:07), the Pension & Provident Funds (Chapter 24:09) and the Insurance & Pensions Commission Act (Chapter 24:21).
In a speech at the Insurance and Pensions Commission workshop on Friday, convened to get stakeholder inputs into the proposed legislation review, Finance and Economic Development Minister Patrick Chinamasa said the amendments have been necessitated by the need to align Zimbabwe’s legislation with international best practices.
“Incorporating these international standards in the country’s insurance and pension legislation will ensure a sound regulatory and supervisory framework,” Minister Chinamasa said.
“The adequacy of the regulatory framework is a requisite for maintaining fair, safe and stable insurance and pension sectors for the benefit and protection of the interests of policyholders, as well as contributing to the stability of the financial system,’ he said.
Some of the deficiencies to be addressed were identified through the 2012 assessment done by experts from the Sadc Secretariat on the level of compliance of the country’s legislation to the standards set by the International Association of Insurance Supervisors and the International Organisation of Pension Funds Supervisors.
The legislative review focuses on issues which include corporate governance, legal and regulatory framework and prudential standards, empowering the regulator to effectively supervise the sector, addressing anti-money laundering and countering the financing of terrorism issues.
The review also includes group wide supervision of financial conglomerates, regulation of medical aid schemes and cooperation with other financial sector regulators.
Specific areas for the pension sector include enhancing protection of policy holders, rights of policy holders, allowing offshore investments by pension funds and insurance companies, regulation of insurance and pension aspects of the National Social Security Authority and the Insurance and Pension Commission’s improved oversight on pension funds, among others.
“Since the establishment of the Insurance and Pensions Commission in 2006, operational Acts, namely the Insurance Act (Chapter 24:07), the Pension & Provident Funds Act (Chapter 24:09) remained largely unchanged and hence there is now need not only to synchronise the three acts, but to also revamp them such that they conform to international standards and best practices governing regulation and supervision of the insurance and pension sector,” said Minister Chinamasa.
“It is there, my proposal to amend the three Acts covering regulation of the insurance and pension activities in Zimbabwe.
“Although individual Bills will be submitted separately for Parliamentary approval, the objective of this memorandum is to have the principles approved jointly. The end product of this consultative process should be agreed upon by all the stakeholders,” he added.
Online Reporter