THE Zimbabwe Integrating Capital and Risk Programme (Zicarp) stated this week that all insurers in the nation should have whistle-blower protection policies to ensure accountability in the sector.
Zicarp programme director Tinashe Mashoko told businessigest that whistle-blower protection was necessary so that any risks identified by whistle-blowers were brought to the fore.
"Zicarp is saying each insurer will need to have a whistleblowing policy in place, which policy must then protect the whistle-blower,” he said.
“The insurer’s whistle-blowing policy should provide a number of specific and independent channels to the whistle-blower for reporting concerns.”
Zicarp is a governance, risk and capital management programme that is aimed at building a resilient insurance industry by introducing a proportionate, risk-based approach to supervision with appropriate treatment for large and small insurers.
It is a risk-based capital solvency scheme that seeks to address the shortcomings that have been identified within the local insurance industry.
Launched by the Insurance and Pensions Commission (Ipec) in 2021, the programme also seeks to improve consumer protection and assurance to policyholders and beneficiaries.
It provides incentives to insurers to measure and properly manage their risks, while helping them absorb significant unforeseen losses.
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Mashoko said the whistle-blower protection policy should be readily accessible by all staff.
He said the programme should be regularly communicated to ensure staff awareness.
Mashoko said the policy should also provide for anonymous disclosures if the whistle-blower desires anonymity.
"The policy should include explicit recognition of the whistle-blower’s right to communicate with regulators, at any time in relation to any concern within the scope of the programme." he said
Mashoko did, however, draw attention to a few difficulties in the implementation of Zicarp, such as the requirement for ownership and accountability for deliveries.
According to the Zicarp programme director, risk management required adequate resources as well as a favourable risk culture among insurers.
"Timely and positive feedback on all issues raised by Ipec is also a challenge. Insurers need adequate IT (information technology) and data management systems in place,” Mashoko said.
“The long-term view and investment required is also challenging at the implementation stage. You will also realise that processes need to be embedded into internal control systems, business processes, decision making and organisation culture."
Zicarp is also expected to enable insurers better allocate their capital resources.
