The Insurance and Pension Commission (IPEC) board chairperson Albert Nduna has called on industry players to treat customers fairly so as to gain confidence and trust among its stakeholders.
By Noah Kupeta
Nduna said IPEC acknowledges that macro-economic stability and predictability of macro-economic fundamentals are critical for sustainability of the industry.
Whilst there has been business cycles in the economy over the past two decades, utmost good faith and reasonable expectations remain cardinal principles of insurance and pensions.
“We urge the industry to prioritize “Treating Customers Fairly” as key principles in their operations.
“The Commission is in the process of finalizing the development of a Treating Customers Fairly Framework and a Market Disclosure Framework as part of the Zimbabwe Integrated Capital and Risk Project.
“The two will guide the industry in terms of disclosure requirements on treatment of your customers. Treating Customers Fairly, will also be our theme for next year.
“As an industry, you should remember that without your customers, there is no insurance and pension sector to talk about.
“Therefore, in your operations, always be mindful of the need to treat your customers fairly. Insurers are expected to settle claims timeously and pension funds are expected to meet members’ reasonable expectations,” he said.
In order to achieve this, insurance business have been called upon to comply with Prescribed Asset status, a key concern raised by Finance and Economic Development minister, Professor Mthuli Ncube in the 2019 Budget statement.
He noted that is insurance companies should have viable Prescribed Asset status so that they deliver according to expectations.
“By now you would have heard the new minimum capital requirements announced by the Minister of Finance and Economic Development in the proposed 2020 National Budget Statement recently.
“Our expectation is that you will comply as this is meant to protect the values of policyholders and pension scheme members,” he said.
Nduna further encouraged insurance players to tape into the informal sector and treat them fairly as those in the formal sector.
The International Monetary Fund (IMF) states that Zimbabwe has an informal sector estimated at over 60 percent of the country’s Gross Domestic Product and worth about US$57 billion.
Zimbabweans in the diaspora are said to be earning about US$30 billion per year and sending about US$4 billion back home, a key consideration that should catch the attention of the insurance industry.
It is therefore critical that as a business insurance companies look out for cost management; providing quality service; and use of modern technology.
More importantly, insurance companies consider aspects of protecting and providing for the future taking into consideration factors such as having a strategy for the informal sector; seek to grow external earnings; keeping abreast with technological changes; and striving to maintain value.
