Ipec convenes capitalisation seminar

THE Insurance and Pension Commission (Ipec) will tomorrow host an insurance seminar which seeks to benchmark local capitalisation levels with international standards, the commission has said.

Report by Tarisai Mandizha

The Mordenising Insurance Regulation—Solvency II seminar comes at a time when the sector has been on a growth trajectory following a slump at the height of the country’s unprecedented economic meltdown which ended in 2009.

Solvency II is a framework developed to guide the regulation of insurance in the European Union and its primary concern is the determination of the amount of capital that insurance companies have to hold to reduce the risk of insolvency. Last year Ipec raised minimum capital levels for shortterm insurance players to
$1,5 million from $300 000.

Despite increasing sector-wide minimum capital requirements, some players in the insurance sector contend that the figure remains low.

Ipec risk manager Nhau Chivingira said the decision to consider implementation of Solvency II had come against a background of failure by some insurance entities to honour claims and in some cases resulting in deregistration of some insurers.

Yesterday, the insurance sector regulator ordered SFG Insurance Company to stop writing business with immediate effect after an investigation undertaken by the commission established that the short-term insurance firm was insolvent.

Chivingira said the Solvency II framework was a version that suited the Zimbabwean market and the aim of the seminar was to set the foundation on the way forward with regard to the adoption of the framework, in the event that a decision to adopt the framework has been taken.

“Solvency II reflects new risk management practices to define required capital and manage risk. It is the equivalence of Basel II in banking supervision.The framework has been adopted as a whole or partially by other jurisdictions outside the European Union as international best practice,” Chivingira said.

He said the objectives of implementing the Solvency II or the equivalent was to improve risk management systems, to reduce the losses suffered by policyholders, provide early warning to Ipec, promote confidence in the financial stability of the insurance sector as well as to enable the local insurers to compete internationally.

Close to 200 participants are expected to turn up for the Ipec seminar.

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4 Responses to Ipec convenes capitalisation seminar

  1. kedo May 21, 2013 at 9:17 am #

    Don’t waste your time talking politics. See how a Zimbabwean poor woman became a millionaire just by buying and selling accidented cars, Very interesting idea. Go to (ACCIDENTEDCARS.COM) to see the various methods and companies she was using (ACCIDENTEDCARS.COM). A simple idea but very realistic. WAKE UP AFRICANS. Don’t waste your time talking politics.

  2. Falcon May 21, 2013 at 12:56 pm #

    It looks like we will have to attend the seminar to understand how the gentleman who worked for 34 years and religiously contributed to a pension fund was paid ten dollars per month for the remainder of his life…And I suppose at this seminar we will be told about the actuary who was going to put the pension payout right..And I suppose if insurance companies are now being asked to up their capital reserves from 300k to 1.5 million (500%) perhaps pensioners will get the same? This is good seminar I suppose bringing standards and benchmarking with EU standards will also bring miniumu payouts to be in line with the EU regulations..we will be THERE in full force at this life changing seminar..do not look for us we will find YOU.

    • Tsunami May 22, 2013 at 8:05 pm #

      You’re right, these people are thieves robbing people of their hard won earnings. If you ask to commute part of you savings to finance your projects which will earn you far more than $10 a month. They want you to die suffering while they buy property using your money.

      They hide behind circular 4 of 2012 which they crafted, nonsense.

  3. mhodzi mabhanana May 22, 2013 at 3:54 pm #

    Well don mailaka

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