Tuesday, September 16, 2014 Local time: 04:53

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Zimbabwe Insurance Commission Closes 56 More Undercapitalized Firms

Reports said the move by regulators affected 25 insurance brokers, 12 short-term insurance companies, eight life assurance firms, six reinsurers and five funeral insurance companies

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Gibbs Dube

The Insurance and Pensions Commission of Zimbabwe has shut down another 56 insurance companies that failed to meet minimum capital requirements set by the Reserve Bank of Zimbabwe.

Reports said this brings to 74 the number of firms, most of them owned by indigenous Zimbabweans, closed down by the commission for failing to show capital of US$300,000 to US$500,000.

Reports said the move by regulators affected 25 insurance brokers, 12 short-term insurance companies, eight life assurance firms, six reinsurers and five funeral insurance companies.

Eighteen insurance companies were shut down a couple of weeks ago when they became insolvent and were unable to fulfill their commitments to clients.

Witness Chinyama, a Harare economist, said such firms were struggling to meet capital requirements ranging from US$300 000 for non-life insurers to US$500,000 for life insurers.

Chinyama said thousands of businesses and consumers have been affected by the closures, adding: "A way has to be found to ensure that such clients are refunded their contributions."

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by: message madimutsa
27.08.2010 08:23
Gvt should first of all address the issue of paid up funeral insurance which just dissapeared when the multiple currency was introduced, then if such clients are given their full cover by such insurance like Doves then such a company must be allowed to operate again, but if such companies refuse to honour their contracts with their clients, Gvt must cease everything and share to the prejudiced clients like me.


by: Clare Thornton
26.08.2010 11:40
I would like to make contact with other affected people with a view to suing tn get my money back.

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