The Insurance and Pension Commission (IPEC) leader, Tendai Karonga has raised concern over the incompetent officials who pose problems to financial reporting in the Insurance Industry. The Commissioner said this during the IPEC-ICAZ seminar at the Rainbow Towers hotel in Harare yesterday.
During the seminar co-hosted by IPEC and the Institute of Chartered Accountants of Zimbabwe (ICAZ), Karonga said that some of the challenges with regards to financial reporting in the insurance are emanating from incompetence by some officials within the industry.
“In a bid to address this challenge, the Commission has come up with fit and proper assessment criteria to vet all proposed office bearers for key positions within an insurance company,” said The Commissioner.
Karonga also added that the criterion will include qualifications, experience as well as the integrity of the proposed appointees. According to the Commissioner, one of the challenges that insurers are facing is failure to implement Audit recommendations;
“The Commission has noted long outstanding issues in some insurers audited financial statements. Where such issues persist, we urge the accounting profession to report to the Commission.” said The Commissioner.
Karonga also commented on the effects of economic conditions to the Insurance Industry stating;
“Due to the harsh economic environment currently obtaining, some policyholders are entering into arrangements to pay premiums in installments.”
Since the 2007/8 economic meltdown, Zimbabwe is yet to recover as over 200 companies closed down last year. The IPEC-ICAZ Seminar on Insurance and Pensions Reporting was one of a series of workshops hosted in a bid to promote continued professional growth in the industry.