IPEC says it will sanction funeral assurers withou...

IPEC says it will sanction funeral assurers without prescribed asset base

Zim Now Writer

The Insurance and Pensions Commission has said that funeral assurers face regulatory sanctions if they do not take compliance issues seriously.

This comes as the sector was at the end of last year, non-compliant on a number of issues although prescribed assets and reinsurance arrangements topped the list.

According to Ipec Q4 funeral assurance report, all the players in the sector were not compliant with minimum prescribed assets requirements for the sector with an average prescribed asset ratio of 0,007% against a required ratio of 10%.

“The commission is concerned by the continued non-compliance levels with prescribed assets. Few funeral assurance companies have submitted compliance roadmaps which have since been approved while some are yet to develop and submit roadmaps in line with SI 206 of 2019. The commission will be escalating measures to cause compliance,” Ipec said.

The total invested in prescribed assets during the period was only $47.4 million against the minimum requirement of $60.33 million to comply with the minimum prescribed assets threshold of 10%.

Ipec however said it expected the ratio to improve on the back of the according of gold coins prescribed asset status.

Gold coins were introduced into the economy last year.

All funeral assurers, Ipec said, did not have any reassurance plan in place.

“The commission is concerned by the continued lack of reassurance arrangements in the sector despite several commitments by the funeral assurance players. The sector is encouraged to seriously consider reassurance as a prudent risk management practice in the event of catastrophes,” said Ipec.