Half of funeral assurance companies face collapse

MORE than 50% of funeral assurance companies are on the brink of collapse amid revelations by the industry regulator that they are under capitalised.

According to the first quarter report from the Insurance and Pensions Commission (Ipec), five out nine funeral assurance companies face an uncertain future as they are battling to meet the minimum capital requirement for funeral assurance entities pegged at $2,5 million.

The five companies are capitalised as follows: Foundation ($1,3 million) Orchid ($712 000), Passion ($557 000), Ruvimbo ($2,4 million) and Sunset ($1,5
million).

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