The Namibia Financial Institutions Supervisory Authority (NAMFISA) has announced the recovery of over N$2.7 million for consumers in the non-bank financial sector during the third quarter of 2024.
This follows the resolution of 80 complaints between 1 July and 30 September 2024.
NAMFISA Chief Executive Officer Kenneth Matomola highlighted the authority’s commitment to resolving consumer complaints effectively while addressing systemic issues in the sector.
“As the primary regulatory body overseeing the non-bank financial sector, NAMFISA upholds its mandate to resolve complaints efficiently while identifying underlying conduct issues and root causes,” he said.
The complaints predominantly stemmed from the long-term insurance, short-term insurance, and microlending sectors.
The most frequent grievances involved non-payment of funeral claims and repudiation of motor vehicle accident and property insurance claims.
Notably, complaints from the microlending sector dropped significantly, from 53 in the same period in 2023 to just 11 in 2024, signaling an improvement in consumer relations within the industry.
Long-term insurance recoveries accounted for the bulk of the funds returned to consumers, exceeding N$2.7 million.
However, the report noted a sharp decline in pension fund payouts, which fell from N$466,609 in the second quarter to just N$36,511 in the third quarter.
Similarly, short-term insurance payouts decreased by 78% over the same period. In contrast, the medical aid fund sector showed progress, with recoveries amounting to N$86,231 for consumers.
Matomola emphasized the dual focus of NAMFISA’s efforts: resolving individual complaints and leveraging these cases to identify broader industry trends.
“Through our efforts, we continue to ensure financial institutions are held accountable, and we are proud of the progress in resolving consumer complaints. Our ongoing work centers around not only addressing complaints but also identifying root causes and providing targeted consumer education,” the NAMFISA CEO said.
He said consumer education remains a key priority for NAMFISA.
“Educated consumers are empowered to make informed decisions, which can help prevent disputes with financial institutions,” Matomola said.
