Finance Minister, Prof Mthuli Ncube meets insurance and pensions industry leaders

Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube met with leaders of the insurance and pensions industry in Harare yesterday to address policy matters of interest to the sector.

The meeting, organized by the Insurance and Pensions Commission (IPEC), brought together Prof Ncube and ministry officials, IPEC representatives, and the Zimbabwe Insurance and Pensions Apex Council (ZIPAC), which serves as an umbrella organization for all insurance companies and pension funds.

One of the key topics discussed was the compensation of policyholders and pension scheme members for the loss of insurance and pension values during the transition from the Zimbabwe dollar to the United States dollar in 2009.

Professor Ncube emphasised the importance of resolving this issue, noting that the affected individuals are clients of the industry, with whom contractual agreements were made.

“As an industry, you are being asked to account for those monetary liabilities that lost value, and the assets and buildings that you bought, survived notwithstanding the geopolitical factors,” he stated.

“Of course, the Government’s compensation is complimentary, and we have committed through Cabinet resolution and budget pronouncement.”

ZIPAC Chairperson Mr Willy Chibaya acknowledged the industry’s recognition of the need to compensate policyholders and pension scheme members. He emphasised the importance of implementing the compensation process flexibly to ensure fairness to all stakeholders.

IPEC Commissioner, Dr Grace Muradzikwa highlighted the prolonged nature of pre-2009 compensation discussions, which have negatively impacted the industry’s reputation.

However, she expressed optimism that compensation would be done in 2024 while underscoring the importance of industry collaboration in achieving compensation goals aligned with recommendations from the Commission of Inquiry.