Dollarization of Old Mutual’s life contracts

The Zimbabwean life insurer Old Mutual has informed its insured that their insurance policies are converted into American dollars. The policyholders having an insurance contract of less than 250 USD are entitled to a cash payment. For the others, the policies will be payable only from the age of 55. But Old Mutual does not explain what the exchange rate used will be. With the devaluation of the defunct Zimbabwean dollar, policyholders are poised for a great disappointment.