NAMFISA received 189 complaints in Q32022
81.5% of complaints were resolved
The resolution of complaints resulted in consumers receiving a total of N$1 715 993.34 from financial institutions.
NAMFISA received 189 complaints in Q32022
81.5% of complaints were resolved
The resolution of complaints resulted in consumers receiving a total of N$1 715 993.34 from financial institutions.
Staff Reporter
The Namibia Financial Institutions Supervisory Authority’s (NAMFISA’s) complaints department received 189 complaints from consumers of financial services during the third quarter of 2022.
This is an increase by 13.2% from the second quarter of 2022 and a reduction of 11.3% on an annual basis.
About 81.5% of the complaints received during the quarter were resolved. Furthermore, out of the 189 complaints, 92.6% jointly originated from only four industries, namely microlending, long term insurance, short term insurance and retirement funds.
The resolution of complaints resulted in consumers receiving a total of N$1 715 993.34 from financial institutions, of which the retirement funds, long term and short-term insurance industries accounted for 96.2%.
NAMFISA continues to ensure consumers are protected as per its vision. These payments broadly relate to wrongful deductions, non-payment of motor vehicle accident claims, unpaid pension benefits, non-payment of beneficiary benefits and non-payment of funeral benefits.
The overall non-banking financial industry achieved full compliance status of 61.9%. NAMFISA regulated 627 entities during the third quarter of 2022.
The non-banking financial institutions (NBFIs) sector assets decreased quarterly by 0.1% and marginally increased by 0.8% to N$356.9 billion annually at the end of the third quarter of 2022. The subdued growth in the sector is mainly due to weaker performance in the financial markets.
Long term
The Long-term insurance industry’s total assets observed a slight increase both quarter-on-quarter and year-on-year as at 30 September 2022 reflecting global market volatility. Nonetheless, the industry’s excess assets increased by 2.4% quarter-on-quarter and 3.2% year-on-year to N$9.1 billion in the same period. The industry’s total liabilities increased by 1.2 percent quarter-on-quarter and marginally declined by 0.2% year-on-year to N$56.2 billion as at 30 September 2022. The quarterly increase in policyholder liabilities mainly influenced growth in the liabilities of the industry. The increase in policyholder liabilities mainly resulted from growth in policyholders’ investment contract liabilities which were directly impacted by the increase in the value of investment assets of the industry.
In addition, the short-term insurance industry’s total assets declined by 0.3% quarter-on-quarter and 8.2% year-on-year to N$7.0 billion as at 30 September 2022. The decrease in total assets for both periods mainly emanated from a decline in reinsurer’s share of outstanding claims as at 30 September 2022.
The industry’s total liabilities increased by 2.0% quarter-on-quarter and declined by 5.8% year-on-year to N$4.9 million as at 30 September 2022. The moderate increase in total liabilities on quarterly basis mainly emanated from growth in trade and other payables and the yearly decline is attributable to gross claims incurred but not reported during the period under review.
Medical
Furthermore, the medical aid industry held total assets of N$1.8 billion as at 30 September 2022, a decrease of 4.5% from the previous quarter and by 11.9% on an annual basis. The decrease in total assets was attributed to the decline in the capital value of investment assets held by the industry because of unfavorable market performances. The industry’s current liabilities increased by 0.2% quarter-on-quarter and increased by 12.9% year-on-year to N$497.0 million. The industry’s investments of N$1.7 billion at 30 September 2022 is considered adequate to withstand any adverse claims experience which may result from increased liabilities.
The total retirement fund investments, including insurance policies, decreased by 0.7% quarter-on-quarter and by 1.0% year-on-year to N$199.3 billion during the review period. Investments held in insurance policies amounted to 11.6 percent of the industry’s total investments. Investments held directly by retirement funds decreased by 0.2% quarter-on-quarter and by 1.4% year-on-year to N$176.2 billion during the quarter ended 30 September 2022. Insurance policies held by the industry decreased by 0.5% quarter-on-quarter but increased by 2.4% year-on-year to N$23.1 billion. The quarterly decline in investment values were as a result of losses in the value of investments due to negative market performances.
Lastly, the friendly society’s assets increased by 1.9% quarter-on-quarter and by 10.7% year-onyear to N$2.2 million as at 30 September 2022. The quarter-on-quarter increase was attributed to growth in the investments and cash and cash equivalents of the society. Total liabilities decreased by 9.6 percent quarter-on-quarter and by 8.3 percent year-on-year to N$85 811 as at 30 September 2022. This comprised of accounts payable of N$35 811 and provision for claims that amounted to N$50 000.
81.5% of complaints were resolved
The resolution of complaints resulted in consumers receiving a total of N$1 715 993.34 from financial institutions.
Staff Reporter
The Namibia Financial Institutions Supervisory Authority’s (NAMFISA’s) complaints department received 189 complaints from consumers of financial services during the third quarter of 2022.
This is an increase by 13.2% from the second quarter of 2022 and a reduction of 11.3% on an annual basis.
About 81.5% of the complaints received during the quarter were resolved. Furthermore, out of the 189 complaints, 92.6% jointly originated from only four industries, namely microlending, long term insurance, short term insurance and retirement funds.
The resolution of complaints resulted in consumers receiving a total of N$1 715 993.34 from financial institutions, of which the retirement funds, long term and short-term insurance industries accounted for 96.2%.
NAMFISA continues to ensure consumers are protected as per its vision. These payments broadly relate to wrongful deductions, non-payment of motor vehicle accident claims, unpaid pension benefits, non-payment of beneficiary benefits and non-payment of funeral benefits.
The overall non-banking financial industry achieved full compliance status of 61.9%. NAMFISA regulated 627 entities during the third quarter of 2022.
The non-banking financial institutions (NBFIs) sector assets decreased quarterly by 0.1% and marginally increased by 0.8% to N$356.9 billion annually at the end of the third quarter of 2022. The subdued growth in the sector is mainly due to weaker performance in the financial markets.
Long term
The Long-term insurance industry’s total assets observed a slight increase both quarter-on-quarter and year-on-year as at 30 September 2022 reflecting global market volatility. Nonetheless, the industry’s excess assets increased by 2.4% quarter-on-quarter and 3.2% year-on-year to N$9.1 billion in the same period. The industry’s total liabilities increased by 1.2 percent quarter-on-quarter and marginally declined by 0.2% year-on-year to N$56.2 billion as at 30 September 2022. The quarterly increase in policyholder liabilities mainly influenced growth in the liabilities of the industry. The increase in policyholder liabilities mainly resulted from growth in policyholders’ investment contract liabilities which were directly impacted by the increase in the value of investment assets of the industry.
In addition, the short-term insurance industry’s total assets declined by 0.3% quarter-on-quarter and 8.2% year-on-year to N$7.0 billion as at 30 September 2022. The decrease in total assets for both periods mainly emanated from a decline in reinsurer’s share of outstanding claims as at 30 September 2022.
The industry’s total liabilities increased by 2.0% quarter-on-quarter and declined by 5.8% year-on-year to N$4.9 million as at 30 September 2022. The moderate increase in total liabilities on quarterly basis mainly emanated from growth in trade and other payables and the yearly decline is attributable to gross claims incurred but not reported during the period under review.
Medical
Furthermore, the medical aid industry held total assets of N$1.8 billion as at 30 September 2022, a decrease of 4.5% from the previous quarter and by 11.9% on an annual basis. The decrease in total assets was attributed to the decline in the capital value of investment assets held by the industry because of unfavorable market performances. The industry’s current liabilities increased by 0.2% quarter-on-quarter and increased by 12.9% year-on-year to N$497.0 million. The industry’s investments of N$1.7 billion at 30 September 2022 is considered adequate to withstand any adverse claims experience which may result from increased liabilities.
The total retirement fund investments, including insurance policies, decreased by 0.7% quarter-on-quarter and by 1.0% year-on-year to N$199.3 billion during the review period. Investments held in insurance policies amounted to 11.6 percent of the industry’s total investments. Investments held directly by retirement funds decreased by 0.2% quarter-on-quarter and by 1.4% year-on-year to N$176.2 billion during the quarter ended 30 September 2022. Insurance policies held by the industry decreased by 0.5% quarter-on-quarter but increased by 2.4% year-on-year to N$23.1 billion. The quarterly decline in investment values were as a result of losses in the value of investments due to negative market performances.
Lastly, the friendly society’s assets increased by 1.9% quarter-on-quarter and by 10.7% year-onyear to N$2.2 million as at 30 September 2022. The quarter-on-quarter increase was attributed to growth in the investments and cash and cash equivalents of the society. Total liabilities decreased by 9.6 percent quarter-on-quarter and by 8.3 percent year-on-year to N$85 811 as at 30 September 2022. This comprised of accounts payable of N$35 811 and provision for claims that amounted to N$50 000.
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