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Ipec bids to improve capital compliance
THE Insurance and Pensions Commission (Ipec) expects to see improved compliance following the launch of a new solvency framework which seeks to align insurers’ capital to the risk they carry.
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The new framework, the Zimbabwe Integrated Capital and Risk Programme (ZiCARP), is expected to help ensure that each insurer can withstand any risk it is exposed to, ultimately enhancing protection for policyholders.
Before ZiCARP, insurers were subjected to a one size fits all regulatory capital framework, regardless of their size and nature.
The new approach will be responsive to market dynamics, according to Ipec.
“We look forward to witnessing improved levels in compliance by all insurance entities. I would like to underscore that ZiCARP is a continuous revolving solvency regime, as such insurers should be flexible in their approach and willing to regularly engage with the commission when a change in certain aspects of the solvency regime is necessary.
“We, therefore, expect continuous engagements between Ipec and the insurance sector,” Ipec commissioner Grace Muradzikwa said during the virtual launch of the framework this week.
“ZiCARP is a risk-based capital solvency regime that seeks to address the shortcomings that have been identified within the insurance regulatory framework. This is a move from rules-based to principles-based approach.
“It is a solvency regime that has its underlying principles built from international solvency frameworks,” she added.
ZiCARP will transition the sector from Statutory Instrument (SI) 95 of 2017, under which the same level of absolute minimum capital obligation was applicable to all insurers.
newsdesk@fingaz.co.zw
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