Key Amendments Introduced By The Insurance And Pensions Commission Amendment Act, 2026

by Webmaster | May 5, 2026 | 0 comments

The Insurance and Pensions Commission (IPEC) plays a pivotal role in overseeing the insurance and pensions sectors in Zimbabwe, ensuring that these industries are aligned with global best practices. As the regulatory landscape evolves globally and domestically, it is essential for IPEC to stay aligned with emerging trends and best practices. In this context, understanding the Insurance and Pensions Commission Amendment Act, 2026 is crucial for ensuring compliance with the new regulatory framework.

The Insurance and Pensions Commission (IPEC) Amendment Act, 2026 proposes significant amendments to the Insurance and Pensions Commission Act [Chapter 24:21]. These changes aim to strengthen the regulatory framework overseeing Zimbabwe’s insurance and pensions sectors. The amendments have far-reaching implications for insurers, pension funds, asset managers, and medical aid societies and the National Social Security Authority (NSSA). Below is an overview of the key changes:

1. Expanded Definitions (Section 2)

New definitions for terms such as “asset,” “associate,” and “closely related” clarify ownership and relationship structures in the sector.
The definition of “control and controlling stake” is refined, specifying thresholds (e.g., 10% ownership or voting rights) for control over an entity’s management and decision-making;

a) holding of issued shares or financial instruments (such as compulsory convertible debentures) of at least 10% of total issued shares or debentures in a registered entity or its ultimate beneficial owner; or
(b) voting rights attached to the aforementioned shares i.e. at least 10% of issued shares or financial instruments; or
(c) power to appoint directors to the board and other executive committees or remove them.

“independent director” is defined as a person who has no vested interest in the entity where he or she is a director of the Board.

2. Enhanced Powers for IPEC (Sections 3A & 4)

There is introduction of a new section 3A which provides for IPEC’S objectives to regulate, supervise and monitor the insurance and pension sector including promotion of fair, safe and stable sector for the benefit of policyholders and pension fund members.
IPEC’S objectives are also to include ensuring that the insurance and pensions sector adheres to principles of accountability and transparency and promote the development of the insurance and pensions sectors.
IPEC’s regulatory powers are further expanded to include regulation of medical aid societiesfor the first time, along with insurers, pension funds, and other related entities;

“(a) to register insurers, mutual insurance societies, insurance brokers, medical aid societies and pension and provident funds and the National Social Security Authority (NSSA) to ensure that they maintain set standards and ensure compliance with the Insurance Act [Chapter 24:07] and the Pensions and Provident Funds Act [Chapter 24:32], as the case may be;

IPEC is given authority to approve service providers (e.g., actuaries, asset managers, credit rating agencies) to operate within the insurance and pensions sectors;

to approve for the purposes of continuing or commencing operations in the insurance and pensions sector, actuaries, asset managers, credit rating agencies and other service providers;

IPEC gains stronger enforcement powers to investigate and enforce compliance, including tougher mechanisms for addressing contraventions of sector laws.

3. Governance Reforms for IPEC (Sections 5, 6, 7, 13, 14, 15, 23)

The composition and qualifications of the IPEC Board are revised. The number of directors is increased to between 7 to 9 members, with a stronger emphasis on experience in fields such as actuarial science, law, finance, HR management, information technology and related fields of expertise.
Directors will now be subject to stricter conflict of interest provisions, with disqualifications introduced for individuals with ties to regulated entities or conflicting interests.
Term limits for directors are clarified, allowing a maximum of two consecutive four-year terms.
The IPEC Board will be required to establish key committees, including audit, risk management, and remuneration committees, to ensure effective governance and oversight.
The amendments to section 23 introduce stricter penalties for non-compliance with information requests by the IPC. Entities failing to provide requested data could face fines or imprisonment.

4. International Cooperation (New Part IIA, Section 23A. 23B, 23C, 23D)Part IIA focuses on cooperation by IPEC with other authorities, allowing the Commission to foster relationships with foreign supervisory and law enforcement authorities. This includes sharing information, conducting investigations, and harmonizing laws and procedures to strengthen cross-border regulation of the insurance and pensions sectors. The Commission is empowered to share privileged information with international authorities, provided confidentiality is maintained.

5. Policyholder and Pensions and Provident Fund Members Protection Fund (Part IIB, Section 23E, 23F, 23G, 23H, 23I, 23J, 23K, 23L, 23M, 23N, 230, 23Q, 23R, 23S, 23T)
The amendment introduces a new statutory compensation and protection fund aimed at safeguarding insurance policyholders and pension/provident fund members where insurers or pension funds collapse or become financially unsound.

Establishment of a Protection Fund. A new body corporate called the Policyholder and Pensions and Provident Fund Members Protection Fund is created.

Its purpose is to:

compensate policyholders and pension/provident/retirement annuity fund members who suffer losses due to insolvency of insurers or funds;
pay rightful claimants any unclaimed benefits;
improve public confidence in the insurance and pensions sector.

Who Must Contribute
Mandatory contributions must be paid by:

insurers registered under the Insurance Act;
pension, provident and retirement annuity funds.

The amount and payment method will be prescribed by regulations. Failure to contribute is an offence and contributors may be fined up to three times the unpaid contribution, with civil recovery also allowed.

Sources of Fund Money
The Fund will be financed through:

compulsory industry contributions;
investment income;
penalties;
parliamentary appropriations;
donations/grants;
unclaimed benefits older than five years;
residual unclaimed benefits after dissolution/winding up.

Treatment of Unclaimed Benefits
Unclaimed benefits transferred into the Fund must be preserved for rightful owners together with accrued investment returns. However, where such funds remain unclaimed for more than 30 years, they may, with Ministerial approval, be used for other Fund objectives.

Compensation for Insolvency
Where a contributor becomes insolvent or financially unsound, the Fund may compensate affected beneficiaries.

This applies where:

an insurer collapses or is declared financially unsound;
a pension/provident/retirement annuity fund is dissolved for financial unsoundness;
a company contributor is wound up.

Compensation may be reduced where the claimant has already received payments from:

liquidators;
assets of the insolvent entity;
other insurers or third parties.

Transfer of Policies / Pension Business
The Fund may financially assist another insurer or pension fund to take over the business of an insolvent contributor, helping preserve existing policies or member benefits.

Governance Structure
A Board of up to eight members appointed by the Minister will administer the Fund.

Representation includes:

IPEC;
general insurers;
life insurers;
policyholders;
fund members;
Ministry representatives;
an additional skilled representative.

Members serve four-year renewable terms.

Transparency and Audit
The Fund must:

keep proper books of account;
be audited by the Auditor-General;
keep investment records open for inspection by contributors;
review the size and investments of the Fund annually.

Claims Procedure
Claims must be submitted in writing in the prescribed form.

Claimants must act in utmost good faith.
Fraudulent claims attract severe penalties, including fines and imprisonment.

Claims Excluded
The Fund will not cover:

claims arising before the Fund began operating;
reinsurance policies;
duplicate indemnity claims where another solvent contributor remains liable.

Staffing and Administration
The Board appoints a Chief Executive Officer and staff. A cap is introduced so that no more than 25% of the Fund’s annual income may be spent on staff remuneration and allowances.

6. Amendment to Section 27 of the IPEC Act (Cap. 24:21)

The amendment changes the deadline for preparation of the Commission’s annual accounts.
Previously, section 27(2) required the accounts to be prepared “as soon as possible” after the end of the financial year, which was vague and open-ended.
The amendment replaces that phrase with “Within three months”.

7. Amendment of Part V (General)

Indemnity of members and employees of the Commission – The Act introduces a new section 32A which provides for the indemnification of the members of the Board of the Commission, committee members of the Board of the Commission, the Commissioner, employees and inspectors engaged by the Commission against personal liability that may arise from loss or damage caused by them carrying out their duties under the Act or any regulations, unless that loss or damage is caused by the person’s negligence or intent.
Keeping of Asset Register – There is introduction of section 32B which mandates the Commission to keep an asset register for insurers, insurance brokers, medical aid societies, pensions and provident funds and any other regulated entity. All these entities will be required to give the Commission 14 days’ notice before disposing of any asset recorded in the register.
The Commission is given powers to order the stay of the disposal of any such property if it is of the opinion that the disposal is contrary to public policy.
Contravention of this section by any entity is an offence.

8. Appeals Process (Section 32C)