The Insurance and Pensions Commission of Zimbabwe has shut down another 56 insurance companies that failed to meet minimum capital requirements set by the Reserve Bank of Zimbabwe.
Reports said this brings to 74 the number of firms, most of them owned by indigenous Zimbabweans, closed down by the commission for failing to show capital of US$300,000 to US$500,000.
Reports said the move by regulators affected 25 insurance brokers, 12 short-term insurance companies, eight life assurance firms, six reinsurers and five funeral insurance companies.
Eighteen insurance companies were shut down a couple of weeks ago when they became insolvent and were unable to fulfill their commitments to clients.
Witness Chinyama, a Harare economist, said such firms were struggling to meet capital requirements ranging from US$300 000 for non-life insurers to US$500,000 for life insurers.
Chinyama said thousands of businesses and consumers have been affected by the closures, adding: "A way has to be found to ensure that such clients are refunded their contributions."
