Zimbabwe plans to create a safety net called the Policyholder Protection Fund. This fund will pay people their benefits when insurance companies shut down or face problems. The government started working on this plan last December through a new law. They hope this move will increase people's trust in insurance companies.
The fund comes from the Insurance and Pensions Commission Amendment Bill 2024. Sandra Musevenzo from the Zimbabwe Association of Pension Funds explains that the fund acts like a backup system for customers. When an insurance business fails, the fund steps in to replace some of what you might lose. This helps protect the money people saved with these companies.
Many lost their savings during Zimbabwe's money crisis between 2007 and 2009. The value of pensions went down because of extreme price increases. The government later asked Justice George Smith to study how bad the damage was. His team found that most customers lost money unfairly when the country switched from Zimbabwe dollars to foreign money in 2009.
The new law makes insurance companies put cash into this protection fund. Tanatsiwa Mukomberi, who leads a government money committee, says this ensures people still receive payouts even if their insurance company goes broke. At a recent public meeting in Bulawayo, Maria Wami asked for help for those who lost money years ago. She wants the new protection plan to include people whose retirement savings disappeared during the high-inflation period.
The fund comes from the Insurance and Pensions Commission Amendment Bill 2024. Sandra Musevenzo from the Zimbabwe Association of Pension Funds explains that the fund acts like a backup system for customers. When an insurance business fails, the fund steps in to replace some of what you might lose. This helps protect the money people saved with these companies.
Many lost their savings during Zimbabwe's money crisis between 2007 and 2009. The value of pensions went down because of extreme price increases. The government later asked Justice George Smith to study how bad the damage was. His team found that most customers lost money unfairly when the country switched from Zimbabwe dollars to foreign money in 2009.
The new law makes insurance companies put cash into this protection fund. Tanatsiwa Mukomberi, who leads a government money committee, says this ensures people still receive payouts even if their insurance company goes broke. At a recent public meeting in Bulawayo, Maria Wami asked for help for those who lost money years ago. She wants the new protection plan to include people whose retirement savings disappeared during the high-inflation period.
