27 Mar

The Insurance and Pensions Commission (IPEC) regulates, supervises and strengthens
the insurance and pension industry in Zimbabwe for the protection of policyholders
and pension scheme members.

Following the recent monetary reforms that resulted in the re-introduction of the
Zimbabwe dollar, IPEC believes that the reforms resulted in “extraordinary gains” for
most insurance companies and pension funds.

In pursuit of its mandate to protect the interests of policyholders and scheme
members, IPEC has therefore, developed and issued a Guideline for the insurance
and pensions Industry on adjusting insurance and pension values in response to the
currency reforms in terms of Section 3 (1) (a) of Statutory Instrument 69 of 2020.
The effective date for the Guideline is the 31st of December 2018 and it shall apply to
all business that was there at that time.

The Guideline shall remain in application until either when the value of benefits in
USD-equivalence as of the Determination Date has been fully restored or an earlier
date as may be declared by IPEC.

The Guideline provides the key principles to be adhered to by all insurance
companies and pension funds when determining and allocating Revaluation Gains
that arose as a result of the currency reforms in an endeavour to preserve the value
of benefits for policyholders and scheme members.

• Ensure fair and equitable treatment of insurance policyholders and pension
fund participants by insurance companies and pension funds following the
recent currency reforms;
• Provide standards/principles to be adhered to by the industry on treatment of
revaluation gains emanating from the recent currency reforms. This will enhance
uniformity and comparability of industry results on treatment of revaluation
gains;
• Provide standard methodologies to be used in determining and allocating
revaluation gains; and
• Avoid a repeat of the 2008/2009 challenges that arose from lack of sufficient
guidance from relevant authorities and professional bodies.

The Guideline applies to all insurance companies, pension and provident funds and
fund administrators, and covers adjustment of values due to the 2019 currency
reforms for all in-force insurance contracts, pension and provident fund benefits
effective 01 February 2009 to 22 February 2019.

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