Namfisa financial position remains strong and healthy

08 Aug 2015 14:00pm
WINDHOEK, 08 AUG (NAMPA) – The Namibia Financial Institutions’ Supervisory Authority (Namfisa)'s financial position remains healthy with a surplus of N.dollars 215.6 million, its chief executive officer, Phillip Shiimi says.
“Namfisa remains a financial sustainable organisation. Its financial position remains strong and healthy,” he said whilst presenting the authority's 2015 Annual Report in the capital on Friday.
Shiimi said the theme of this year's annual report is 'Growth', which is guided by different factors such as the institution's local and international awards; tremendously improved regulatory and supervisory interventions; high approval and satisfaction ratings by both the public and regulated entities; and retention of highly skilled staff.
He said in order to attain its strategic objectives, Namfisa expanded its operations with N.dollars 134.1 million, which was funded with its revenue of N.dollars 127.4 million and reserves of N.dollars 4.4 million.
Namfisa used its reserves as an alternative to increasing levies to avoid placing a burden on consumers.
Shiimi stressed that the contributions by levies stand at 89 per cent, investment income at 9 per cent and other income at 2 per cent.
He said income was contributed by short-term insurance at 29 per cent; micro-leading at 22 per cent; unit trust at 14 per cent; assets management at 16 per cent; stock brokers at five per cent, long-term insurance at 10 per cent, pension funds at three per cent and medical aid funds and friendly societies at 1 per cent.
Namfisa is currently regulating about 3 853 entities in the country with assets valued at N.dollars 391 483 million.
He noted that the institution has conducted a successful campaign against malpractice in the insurance sector and has issued several directives to all regulated entities.
Shiimi said one of the directives is to fast-track the waiting period to approve consumers’ application or claims and to remain objective to what insurance companies offer.
He warned members of the public to be careful of fraudulent entities and to make sure they read the requirements and disclaimer before signing insurance policies.
“It is a loss of money to sign an insurance policy you do not understand and cancel after some months,” the CEO advised.
Namfisa has received several complaints from community members concerning the regulated entities and their products and services.
Some of the complaints, Shiimi mentioned, include the non-cancellation of contracts and insurance policies; extension of loan period or overpayment; overcharged interest by cash loans; repudiation of funeral benefits claims; non-payment of pension contribution by employer groups and claim disputes on vehicle and home insurance.
He said they received 537 complaints and managed to resolve 458 complaints.
Namfisa managed to cancel the registration of about 22 entities because of non-compliance, voluntary de-registration, and dormancy reasons among others.
“We will continue to work on areas of concern such as financial inclusion and fair treatment of consumers,” he said.
Namfisa has a workforce of 149 personnel, of which 87 are female and 62 are male.