By Catherine Sasman
WINDHOEK
A public hearing on the role of insurance companies agreed that a task force be set up to investigate operations of the financial service sector and make recommendations to the Government.
While the composition of such a task force was not decisively thrashed out, submissions were made that it should comprise of experts of financial service operations and regulatory bodies, as well as other stakeholders.
The hearing further agreed that consumer education campaigns concerning the insurance industry be intensified, which would allow the general public to make informed decisions regarding insurance policies.
The hearing that was called by the Parliamentary Standing Committee on Economics, Natural Resources and Public Administration, comprised of industry players and members of the public.
Insurance companies came under fire from members of Parliament and members of the public. They criticised the industry for not being easily accessible to the general public, not disclosing enough information to its clientele and that bond insurances discriminate against those facing health challenges, especially those living with HIV/AIDS.
“Civic education is needed to enlighten people on the services or benefits they pay for,” said Congress of Democrats (CoD) MP, Elna Dienda.
SWAPO Party MP, Peya Mushelenga, charged that there is a “certain degree of dishonesty” when insurers approach clients to take out insurance policies.
“The way they market … they do not disclose all the information,” said Mushelenga.
Stakeholders in the insurance industry, the Namibia Financial Institutions Supervisory Authority (Namfisa), and the Bank of Namibia (BoN), came under scathing attack for purportedly not taking stringent measures to ensure proper controls and monitoring mechanisms over the industry.
“Namfisa and the Bank of Namibia do not challenge gross and patent abuse of Namibian [insurance] funds; we need to look at the watchdogs,” charged member of the public, August Maletsky.
He also questioned the level of expertise of those working for the regulatory bodies as well as the financial services sector, saying: “Let us not sidestep qualified people that can run the finance of the country instead of employing hollow-minded nincompoops.”
Hewat Beukes of the Workers Advice Centre said Namfisa is “instrumental in continuing bleeding of the Namibian economy by transnational insurance companies based in South Africa”.
“They do this by claiming that they have insufficient legal power to regulate the insurance companies. But they have sufficient power to close down black newcomers in the industry such as City Funerals, Inscon, Liberty Friendly Society, and they seek to close down the last remaining black insurance company,” Beukes claimed.
He said that the Namibian judiciary, with the exception of a few officers of the law, is “suspect”, acting as a “protective shield over those insurance companies”.
“The insurance companies’ contribution to the national development of the country is zero save some employment opportunities,” said the Workers Advice Centre in its submission to the hearing.
Insurance companies hit back, arguing that they are reviewing their products to be more accessible, more Namibianised, and to cater for the sickly through its risk equalisation funds.
Andrew le Roux, acting as the Chairperson of the Life Assurance Association of Namibia at the hearing, also hit back at allegations that the industry was run by “whites”, arguing that 60 percent of the Old Mutual board of directors are, in fact, black.
Wallie Kruger of the Namibian Insurance Brokers Association said it is important to “move forward constructively” instead of merely criticising an unfolding industry in the country.
Namfisa Life Assurance Manager, John Uusiku, said the regulatory body has embarked upon the revision of the Namfisa Act, and has made a proposal to Parliament for the establishment of an ombudsman for the financial services sector.
The Namfisa Amendment Bill is likely to be finalised by June next year.
“It is a big ship to turn around but we are in the process of doing that,” said Namfisa’s Short-Term Insurance and Medical Aid Industry Manager, Gysbert Kirsten.