INSURANCE Institute of Zimbabwe (IIZ) has urged new players in the insurance business to source at least minimum capital so as to manage risks and avoid embarrassing clients in case they incur damages.
Report by Pamela Mhlanga Own correspondent
Speaking during the IIZ Annual Conference at a Bulawayo Hotel this week, IIZ supervisor Togarepi Pupurai said it was important for insurance players to make sure that they have enough capital before they venture into the insurance business.
“In assurance companies, there are always risks and it is up to the insurer to make sure that those risks are well managed so as to protect clients,” Pupurai said.
He said assurance company regulators such as the Insurance and Pensions Commission had agreed with insurance companies that those who wanted to start insurance business must be equivalent to the capital, but they must have a minimum threshold.
“At the moment, we are still engaged in discussions and there is an ongoing debate concerning how much that minimum capital requirement should be.
“It is yet to be decided,” he said.
“We realised that there has to be a minimum capital requirement because one has to provide enough cover to the client in case of risks.”