Zimbabwe to formalize microinsurance firms
ZIMBABWE is working on a framework to regulate and formalise operations of microinsurance firms targeting low income earners, the Insurance and Pensions Commission said. Microinsurance has been identified as a critical instrument for delivering effective and efficient insurance services and products as well as promoting financial inclusion.
The proposed guidelines are meant to provide a more structured method to deal with the licensing, formalisation and regulation of microinsurance activities, the commission said. The need to develop the framework has been motivated by the current regulatory framework, which does not provide guidelines for the licensing and regulation of microinsurance products and entities. The regulatory gap has presented a challenge to the commission on how to deal with the existence of unregistered providers.
It cited funeral service providers and legal aid businesses providing insurance products as well as other entities that are seeking registration to conduct insurance business, targeting the poor. According to a Finscope Survey of 2014, 70 percent of adults do not have insurance. While 30 percent of the population have insurance, 77 percent is in respect of funeral cover.