Namibia: Namfisa Moves Against Unruly Medical Aid Funds

THE Namibia Financial Institutions Supervisory Authority has instructed all medical aid funds that are restricting benefits to beneficiaries to stop such practices immediately.

In a press statement released last Friday, the Namibia Financial Institutions Supervisory Authority (Namfisa) said it has learnt that some medical aid funds have introduced measures restricting benefits to their members to reduce the impact of Covid-19 on their operations.

"As a key stakeholder, Namfisa is required to act and take the necessary measures to support efforts in the prevention of the spread of Covid-19. As a result, Namfisa engaged the medical aid funds to stop these practices immediately," reads the press release.

The regulator further urged every medical aid fund to conduct its business following sound business principles by maintaining a balance between maintaining financial soundness and not placing an additional burden on members of the fund, especially in light of the worldwide pandemic.

Namfisa said this would ensure a safe, stable and fair financial system that contributes to the economic development of Namibia and in which consumers are protected.

There are at least 10 medical aid funds, with over 196 500 beneficiaries covered. This number excludes the government medical aid fund.

These medical aid funds at the second quarter of 2019 had assets worth N$1,94 billion and were running a combined loss of N$6 million over the same period.

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