Consumers receive N$672 347 in repayments

The Namibia Financial Institutions Supervisory Authority (Namfisa) has facilitated the repayment of N$673 347 to consumers of financial services, mostly related to wrongful deductions.

This was revealed in their second quarterly report for 2023.

According to the report, Namfisa’s Consumer Complaints Department received 194 complaints from consumers of financial services during the quarter under review.

This is an increase of 32% on a quarterly basis and an increase of 2,6% on an annual basis.

“About 72,7% of the complaints received during the quarter were resolved from a total of 194 complaints, of which retirement funds and the long-term and short-term insurance industries accounted for 98,8%,” noted the report.

The industries were made up of insurance, short-term insurance and retirement funds.

“These payments broadly relate to wrongful deductions, unpaid pension benefits, the non-payment of motor vehicle accident claims, the non-payment of beneficiary benefits and the non-payment of funeral benefits.”

The regulatory body also recorded an increase in the Non-Bank Financial Institutions (NBFI) sector’s assets, registering a 3,2% increase quarterly and a substantial 10,3% rise annually, reaching N$394 billion by the end of the second quarter in 2023.

This growth was predominantly attributed to improved performance in financial markets, particularly in the long-term insurance (LTI) industry.

According to Namfisa, the LTI sector experienced a 2,8% quarterly and a 13,3% yearly increase in total assets, reaching N$73 billion by 30 June 2023.

These results were attributed to the growth in investment assets, driven by the recovery in financial markets, particularly in equities and bonds.

Furthermore, short-term insurance showed a 1,3% quarterly and a 9,4% yearly increase in total assets, totaling N$7,7 billion.

“This growth was brought on by investments in corporate bonds and other financial instruments, fuelled by the improved performance of the financial sector,” noted the report.

Medical aid funds, despite a 0,4% decrease quarterly, showcased an annual increase of 1,5% in total assets, amounting to N$2,0 billion as of 30 June 2023.

The industry’s current liabilities rose by 4,5% quarterly, mainly due to increased provisions for unreported claims.

“Despite inflationary pressures and interest rate hikes, the retirement funds performance remained robust,” noted the report.

The retirement funds industry recorded a 3,6% quarterly and an 11,9% yearly increase in total investments, reaching N$224,7 billion with equity markets outperforming bonds.

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