The Insurance and Pensions Commission (IPEC) has launched a revamped solvency management system for the insurance industry.
Dubbed Zimbabwe Integrated Capital and Risk Programme (ZICARP) Framework, the new system aims to, among other objectives, improve consumer protection and assurance to policyholders and beneficiaries.
It also provides incentives to insurers to measure and properly manage their risks, which enables them to absorb significant unforeseen losses.
The framework introduces a principle-based approach to regulation, moving away from a rules-based approach, to ensure better allocation of capital resources in insurance firms, align supervision of all insurance entities and make the sector attractive to investors.
The launch of the framework on 22 June 2021, is a culmination of the work IPEC began in 2015, and from now going forward, insurance companies will begin a phased implementation of the framework.
You can read more about the framework here