The Namibia Financial Institutions Supervisory Authority (NAMFISA) says it recorded a 34% increase in complaints from financial services consumers in the third quarter of 2021.
This was, however, a 18.4% reduction on an annual basis.
“Of all the complaints received, 98.6 percent mainly originated from micro-lending and credit agreements, long-term insurance, short-term insurance, and the retirement funds sectors. About 77% of the total complaints received were resolved amicably,” NAMFISA’s Corporate Communications & Consumer Education Manager, Victoria Muranda said.
The resolution of complaints resulted in consumers receiving well over N$1,8 million from Non-Banking Financial Institutions (NBFI) regulated by NAMFISA, with insurance companies being the main culprits.
“Retirement funds, short-term insurance, and long-term insurance sectors accounted for about 97% of that total amount. The complaints were broadly related to wrongful deductions, non-payment of motor vehicle claims, unpaid pension benefits, non-payment of beneficiary benefits, and non-payment of funeral benefits,” she said.
“Generally, complaints range from extensions of repayment periods without consumers’ consents, repudiations of insurance claims, non-payment of pension benefits, excessive interest charges, illegal deductions and non-cancellations of contracts.”
According to latest industry figures, Namibia’s Non-Bank Financial Institutions (NBFIs) have assets worth N$354.2 billion, with the short term insurance sector has N$7.6 billion assets and the Long-Term Insurance industry boasting of $65.1 billion in assets.
NAMFISA, which regulated 650 entities during the third quarter of 2021, is mandated to supervise financial institutions and financial services, and to advise the Minister of Finance on matters relating to financial institutions and financial services in terms of the NAMFISA Act, 2001 (No. 3 of 2001). It is further responsible for supervising and enforcing compliance with the Financial Intelligence Act, 2012 with respect to all accountable and reporting institutions supervised by NAMFISA in terms of the NAMFISA Act.
