HARARE, Jun. 2 (NewsDay Live) — Zimbabwe’s insurance regulator has cancelled the operating licence of Orchid Funeral Assurance (Private) Limited, citing persistent regulatory breaches and giving policyholders until June 30 to submit claims and supporting documents.
The Insurance and Pensions Commission (IPEC) announced the cancellation in a public notice issued on June 1, saying the company had failed to meet minimum capital requirements, submit quarterly returns and audited financial statements, and maintain a Principal Officer and Board of Directors as required by law.
The licence was revoked under Section 22 of the Insurance Act [Chapter 24:07], which empowers the Commissioner of Insurance to cancel the registration of insurers that fail to comply with statutory obligations.
Policyholders have been instructed to submit their names, identity documents, contact details, policy numbers and copies of policy documents to IPEC offices by June 30.
The cancellation follows years of regulatory concerns over Orchid’s financial position and compliance record.
In its first-quarter 2019 report, IPEC identified Orchid as one of five funeral assurance companies operating below the then-minimum capital requirement of ZW$2.5 million. The company reportedly had capital of only ZW$712,000.
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In 2020, Orchid was also listed among eight registered funeral assurers that lacked reassurance arrangements, a gap IPEC warned posed risks to policyholders and the wider insurance sector.
Despite repeated engagement by the regulator, the company failed to address the identified deficiencies.
According to IPEC, efforts to secure compliance yielded no corrective action, resulting in the cancellation of the company’s licence.
The move comes as funeral assurance remains the dominant segment of Zimbabwe’s insurance industry.
IPEC’s first-quarter 2025 report showed funeral assurance policies accounted for about 74% of total life assurance revenue, reflecting strong demand for funeral cover in a country where many households view burial insurance as an essential financial safeguard.
The market is dominated by larger operators, with Nyaradzo Life Assurance controlling about half of the industry’s revenue and Doves Life Assurance accounting for roughly 12%.
While Orchid represented a relatively small share of the market, the regulator’s action could affect an undisclosed number of policyholders who now face uncertainty over their coverage.
Under the Insurance Act, a company whose registration has been cancelled may no longer conduct business in the affected class of insurance. However, obligations to existing policyholders remain subject to regulatory oversight and resolution processes.
IPEC urged affected clients to submit documentation before the June 30 deadline at its offices in Harare and Bulawayo or by email.
Policyholders who no longer have copies of their policy documents have been advised to contact the regulator for guidance on alternative proof of coverage.
The cancellation reduces the number of registered funeral assurance providers in Zimbabwe and signals a tougher regulatory approach toward insurers that fail to meet capital, governance and reporting requirements.