KMFS Insurance suspended

NON-life insurer, KMFS Insurance, has been suspended from conducting insurance business by the Insurance and Pensions Commission (IPEC).
The move follows an on-site inspection done on the company in January 29, 2015, after which IPEC suspended the company “from initiating and renewing any insurance business”.
The Financial Gazette is in possession of a letter written to the Insurance Council of Zimbabwe (ICZ) on Thursday last week, in which it advised of its action against KMFS.
IPEC said in the letter that the regulatory measure had been taken in terms of section 67(3) of the Insurance Act [Chapter 24:07], taking into account “the glaring shortcomings noted in the inspection in a bid to protect policyholders”.
IPEC requested in the letter that the ICZ should withhold all funds due to KMFS Insurance from the pools administered by the council, which include the Motor Insurance Pool, until further notice.
The collapse of KMFS Insurance highlights the worsening shrinkage in the national economy, which the IMF this week said was expected to perform dismally due to worsening fundamentals.