Insurance firms squirm over new requirements

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The local insurance and pensions industry says the mandatory requirement to invest in prescribed assets restricts them from investing in other value preservation assets in the face of rising inflation.
This comes after government gazetted Statutory Instrument 206 of 2019 which raised the prescribed asset ratios for Life assures to 15 percent from 7,5 percent. Funeral assurers, who were previously required to hold 7,5 percent, and non-life insurers, previously five percent, are now required to hold 10 percent.