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Insurance and pensions sector solid: Ipec



THE pension sector is performing well despite the economy suffering a battering from COVID-19-induced lockdowns, disbursing more than $2 billion in pension and insurance claims this year.

Insurance and Pensions Commission (Ipec) commissioner Grace Muradzikwa made the claims yesterday during the 2021 insurance and pensions journalist mentorship programme which was held virtually.

Muradzikwa said despite the effects of the COVID-19 pandemic on the country’s economy, the insurance industry has continued to pay pension claims, adding that the beneficiaries continued to get their payouts even during the lockdown period.

“Insurance companies have paid about $827 million in claims from January to March 2021,” Muradzikwa said.

“The pension sector also paid pensioners their benefits worth $1,4 billion from January to March the same year.”

Muradzikwa said the pension industry continued to be the largest source of domestic financing in the country.

“The industry has continued pooling resources which can be used for a long periods of time.  These include pension contributions from January to June 2021, which were $1,2 billion,” she said.

The Ipec commissioner said insurers and businesses needed to adapt to new approaches to service delivery during the COVID-19 era as the virus might have an impact on the insurance and other investment sectors if infections continued to spread.

Muradzikwa said lack of confidence in the insurance sector could be attributed to yesteryear loss of value of their benefits due to hyperinflation legacy issues, high levels of premiums in the sector, debtors, liquidity challenges and insurance fraud.

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