Regulatory Alerts2014-05-22
Added
Directive on Administration Fees Payable to Short-Term and Long-Term Insurance Brokers and Re-Insurance Brokers
The directive instructs the insurance industry to discontinue the practice of insurance brokers performing insurer functions and prohibits the payment of administration fees to such brokers, requiring remuneration solely via commission. Effective 1 December 2014, no administration fee may be charged, paid, allowed, given, or accepted, in strict compliance with Regulation 13 to the Long-term Insurance Act No. 5 of 1998 and Regulation 6 to the Short-term Insurance Act No. 4 of 1998. This requirement applies to all registered insurers, reinsurers, insurance agents, brokers, reinsurance brokers, and relevant industry associations.
NAMFISA NAMIBIA FINANCIAL INSTITUTIONS SUPERVISORY AUTHORITY
22 May 2014
To: Principal Officers – All registered insurers and reinsurers All insurance agents and brokers and reinsurance brokers
Chairperson – LAAN
Chairperson – NIBA
Chairperson – AIM
Chairperson – NIA
CIRCULAR LETTER: I/STI & LTI/06/2014
Effective date: 1 December 2014
SUBJECT: DIRECTIVE ON ADMINISTRATION FEES PAYABLE TO SHORT-TERM & LONG-TERM INSURANCE BROKERS AND RE-INSURANCE BROKERS
The insurance industry is hereby instructed to discontinue the current practice whereby insurance brokers are performing the functions of the insurers. Furthermore, brokers should only be remunerated by way of commission and no administration fees should be paid to them.
The insurance industry must strictly comply with Regulation 13 to the Long-term Insurance Act No. 5 of 1998 and Regulation 6 to the Short-term Insurance Act No. 4 of 1998 and therefore no Administration Fee shall be charged, paid, allowed, given or accepted with effect from the Effective Date.
The Registrar therefore requires full cooperation and support in this process by all industry players and stakeholders at large. Should you still need more clarity, please do not hesitate to contact either the Long-term Insurance manager or the Short-term Insurance manager.
Phillip N. Shiimi CEO of NAMFISA and Registrar of Short-Term and Long-Term Insurance
Tel: +264 61 290 5000, Fax: +264 61 290 5157, PO Box 21250, Windhoek, Namibia, 154 Independence Ave, Sanlam Centre, www.namfisa.com.na