Zimbabwe's Insurance and Pensions Commission (IPEC) says it has de-registered two insurance firms, Heritage Insurance and Excellence Insurance, for failing to meet the mandatory minimum capitalization of 1.5 million US dollars.

The two non-life insuring firms had been suspended from issuing and renewing policies early this year and IPEC Commissioner Manette Mpofu announced the deregistration of the two firms here Thursday.

"It is hereby noticed that in terms of section 23 of the Insurance Act (Chapter 24:07), the following insurance companies have had their certificates of registration cancelled: KFMS Insurance Company, Heritage Insurance Company of Zimbabwe and Excellence Insurance Company," she


KFMS had its licence cancelled by the insurance regulator in the last quarter.

The performance of Zimbabwe's insurance sector has remained depressed in the past half decade owing to low economic activity and legacy issues following the conversion from use of the Zimbabwean dollar to the multi-currency system in 2009.

As a result of the challenging environment, most firms are struggling to mobilize new funds and in turn increase their capital thresholds.

The government has already set new capital thresholds for the insurance sector effective January next year at 5.0 million US dollars from 2.0 million USD for life assurers.

Short-term insurers will be required to have a minimum capital of 2.5 million USD from the current 1.5 million USD.

The regulator has since the introduction of the multi-currency regime de-registered several insurers which include Agricultural Insurance Company, Altfin, Jupiter Insurance Company, SFG Insurance Company and Suremed Health Insurance Company.