Short-term insurers buoy Namfisa’s revenue increase for 2017

WINDHOEK, 26 JUNE – The Namibia Financial Institutions Supervisory Authority (Namfisa) recorded an increase in revenue mainly driven by levies collected from the short-term insurance industry for the financial year ended 31 March 2017.
This was revealed in the authority’s annual report for 2017, which was tabled in the National Assembly last week by Deputy Minister of Finance, Natangwe Ithete.
The authority collected a total revenue of N$ 143.4 million in 2017, an increase from N$132.9 million in 2016.
The short-term industry contributed N$38 million from levies.
The increase was attributed to a rise in the total short-term industry participants from 1 121 at the end of 2015 to 1 326 participants at the end of 2016.
The majority of these entities were brokers and agents with only 14 insurers and one active registered reinsurer in Namibia.
According to the report, year-on-year growth for the short-term industry was low with only 1 per cent due to new entrants in the industry who offered competitive premiums to attract more policyholders.
This, as a result, translated into less income collected by the new insurers from premiums.
The micro-lending industry contributed the second highest portion of Namfisa’s revenue with N$33.8 million, followed by the asset management industry with N.dollars 22.2 million and unit trusts with N$19.5 million in 2017.
The long-term insurance industry contributed N$18.6 million from levies.
The report further indicated that stock brokers, pension funds, and medical aid funds and friendly societies only contributed N$6.2 million, N$4.2 million and N$980 503 respectively from levies.
NAMPA