Bill set to open up Zimbabwe’s micro insurance sector
Friday, October 25, 2013
The introduction of the bill will complement the amendment of the Insurance Act which is expected to be finalised soon.
In an interview with businessdigest this week, the Insurance Institute of Zimbabwe (IIZ) president and Moonlight Funeral Assurance group CEO Chomi Makina said the Bill would encourage smaller operators to enter the market as the capitalisation requirements would be significantly lowered.
Capitalisation requirements for insurers range between US$1,5 million and US$3 million.
“Right now we are looking at the Micro Insurance Bill,” Makina said.
“Those people who cannot afford to raise the capitalisation levels to be insurers can become micro insurers. The capitalisation levels are different, so we are allowing the small players to come into the mainstream.”
He added the amendment of the Insurance Act would ensure that previously marginalised insurers could be accommodated in the sector.