The Insurance and Pension Committee (IPEC) of Zimbabwe recently announced it has issued a regulatory framework for microinsurance products to be distributed through “microfinance institutions, mobile network operators, church organisations and burial societies.” The products will mitigate the financial risk caused by “death, injury and illness, loss of property, effects of drought and other contingent events.” The intended customers are “low income earners” as well as small and medium-sized enterprises (SMEs).
A 2014 Finscope survey reported that 70 percent of adults in Zimbabwe had no insurance whatsoever and, of the 30 percent who did, nearly 80 percent held only funeral insurance.
IPEC regulates and monitors all insurance and pension matters in Zimbabwe. It is a non-profit agency owned by insurance companies, pension funds, citizens and its employees. It is governed by a six-person board, of which the commissioner is Tendai Karongo.
By Jacob O’Driscoll, Research Associate
Sources and Additional Information
NewsDay: IPEC goes micro to drive financial inclusion
Finscope Zimbabwe Consumer Survey 2014
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