Zimbabwe Insurance and Pensions Commission publishes consumer explainer on insurance and pensions and clarifies its regulatory remit

The Zimbabwe Insurance and Pensions Commission (IPEC) published a public awareness note explaining how insurance and pension savings can help households manage financial shocks and retirement needs, using a case study to illustrate the consequences of having no cover or savings. The note defines insurance as a premium-funded contract that pays benefits for predefined events and distinguishes general (non-life) insurance from life assurance, with life products described as either protection-only policies or savings products that pay on maturity. It also explains pensions as long-term retirement savings arrangements and outlines the main scheme designs in Zimbabwe, including defined benefit schemes (employer bears investment risk and benefits are formula-based) and defined contribution schemes (member bears investment risk and benefits depend on contributions and returns). IPEC describes Zimbabwe’s pension architecture as including the mandatory National Social Security Scheme administered by the National Social Security Authority, the State Service Pension Scheme (in transition from pay-as-you-go to a funded model), voluntary private occupational pension schemes, and Individual Pension Plans including micropensions/provident funds aimed at workers with irregular incomes, and notes that IPEC regulates and supervises voluntary private occupational schemes and Individual Pension Plans, while the other two schemes fall under the Ministry of Public Service, Labour and Social Welfare.