On 23 June 2025, Zimbabwe’s Minister of Finance, Economic Development and Investment Promotion enacted significant amendments to the Insurance Regulations, 1989 published in Statutory Instrument 49 of 1989 through Statutory Instrument 67 of 2025 (Insurance Amendment Regulations, 2025 No. 28). These amendments characterize a comprehensive overhaul of the regulatory framework governing Zimbabwe’s insurance sector, introducing substantial changes to minimum capital requirements, fee structures, and security obligations across various insurance market participants.
The amendments primarily target various sections of the Insurance Regulations 1989, reflecting the government’s commitment to strengthening the insurance market and aligning it with contemporary economic realities.
Minimum Capital Requirement Restructuring
Capital Thresholds for Insurers (Amendment to section 3)
The most significant change introduced by SI 67 of 2025 concerns the minimum unencumbered capital requirements for insurers. The amendment establishes a tiered capital structure based on business categories, all denominated in United States dollars at prevailing market rates, representing a substantial shift from previous threshold set by Statutory Instrument 59 of 2020 which was pegged in Zimbabwean Dollars (ZWL).
Life assurance insurers, including those offering funeral assurance, now face a minimum capital requirement of USD 2 million. Insurers focusing exclusively on funeral policies benefit from a more accessible threshold of USD 500,000 from the previous ZWL 62.5 million. Non-life insurance businesses must maintain minimum capital of USD 1.5 million, while reinsurance and reassurance operations require USD 2 million. The regulations also introduce a specialized category for micro insurance business, set at USD 100,000.
Insurance Broker Capital Enhancement (Amendment to Section 5)
Insurance brokers experience a significant capital requirement of USD 100,000 minimum unencumbered capital from the previous requirement of ZWL$1.5 million. This change is complemented by enhanced professional indemnity insurance requirements, with coverage limits set at the greater of USD 200,000 or 50% of the broker’s net brokerage income from the preceding year.
Fee Structure Modernization
Document Services and Administrative Fees (Amendment to sections 12 and 13)
SI 67 of 2025 introduces a comprehensive fee restructuring across various administrative services. Policy replacement fees are capped at USD 50 or local currency equivalent at prevailing market rates from the previous ZWL 200. Document inspection and copying services experience significant updates, with basic document inspection fees set at USD 10 from the previous ZWL20, inspection and copying at USD 50 from ZWL200, and certified copies or abstracts priced at USD 5 per hundred words or part thereof from ZWL10.
Enhanced Security and Professional Requirements
Multiple Agent Security Framework (Amendment to section 16)
The regulations establish a comprehensive security framework for multiple agents, requiring professional indemnity insurance coverage of at least USD 185,000 from the previous ZWL1 125 000. Additionally, multiple agents must maintain one of several security options: approved securities worth USD 75,000 from the previous ZWL1 125 000, lodged with the Commissioner, bank or third-party guarantees of equivalent value, bank deposits or assets worth USD 75,000, or any combination thereof totalling the minimum threshold.
New Professional Categories (Section 16A)
SI 67 of 2025 introduces a new provision with specific requirements for loss adjustors, surveyors, and risk management consultants through Section 16A. These professionals must maintain USD 5,000 professional indemnity insurance and secure guarantees or deposits worth USD 2,000. This inclusion recognizes the growing importance of specialized insurance services and ensures appropriate consumer protection across the expanded professional spectrum.
Enforcement and Compliance Enhancements
Penalty Structure Reform (Amendment of section 26)
The amendment introduces a structured penalty framework for licensing violations. Individuals failing to obtain or renew required licenses within one month face daily fines not exceeding level 4 for up to 60 days maximum. Registered insurers represented by non-compliant agents face similar penalty exposure, creating accountability throughout the distribution chain.
After the 60-day period, continued violations escalate to criminal offenses punishable by level 5 fines, imprisonment up to six months, or both. This graduated approach balances enforcement effectiveness with proportionality, providing opportunities for compliance while maintaining serious consequences for persistent violations.
Debt Recovery Mechanisms (Section 26 (3)
The regulations establish clear debt recovery procedures, designating penalties as debts due to the Commission recoverable through court proceedings.
Conclusion
Statutory Instrument 67 of 2025 represents a reform of Zimbabwe’s insurance regulatory framework. The amendments demonstrate a comprehensive approach to market strengthening through enhanced capital requirements, standardized fee structures, and expanded professional coverage. By introducing USD-denominated thresholds and maintaining local currency payment options at prevailing market rates, the regulations acknowledge economic realities while promoting stability.
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