Zimbabwe’s finance minister Tendai Biti has reportedly increased the minimum capital thresholds for insurance companies and brokers by between 350 to 500 percent in a bid to boost the underwriting capacity of the industry.
AllAfrica reported that according to the national budget, life assurance companies and non-life insurance companies will be required to have a minimum capital of $2m and $1.5m, up from $500 000 and $300 000 respectively.
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It is said that composite insurance companies will need to increase their capital level from $800 000 to $3m
Meanwhile, professional indemnity for both insurance and re-insurance brokers will reportedly double from 100,000 to $200,000.
Minister Biti reportedly said the increase in minimum capital thresholds was meant to enhance the protection of policyholders in line with regional and international best practices.
