NBFIRA presentation at Insurance Institute of Botswana (IIB) Conference: “Market Development. Innovative Insurance Products: Key to Market Growth and Sustainability”
As part of its stakeholder engagement efforts, the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) participated in the Insurance Institute of Botswana (IIB) 3rd Annual Conference held under the theme: “Market Development. Innovative Insurance Products: Key to Market Growth and Sustainability”
The Authority is mandated to contribute towards the country’s financial stability through the efficient and effective regulation and supervision of the Non-Bank Financial Institutions (NBFI) Sector, in line with international standards and best practice. The Authority aims to foster within the NBFI sector fairness, efficiency and orderliness of NBFIs as well as high standards of business conduct. Stakeholder engagement initiatives are a critical component in ensuring relevant and timely communication about the Authority’s implementation of its mandate and equally important for receiving feedback from stakeholders.
Presenting and participating in the panel discussion at the conference, Mr. Omphile Botlhole, Acting Senior Insurance Analyst enlightened the audience about the benefits that regulation brings to NBFI’s, the public and the broader economy. He expounded that the rules and regulations that govern entities help to minimize the impact of significant losses and/or claims on the going concern of the business and also ensure that companies do not take on more risk than they can manage. For instance, the rigorous vetting process that entities are obliged to go through ensures that they are managed by Fit and Proper persons.
In his presentation, Mr. Botlhole also elaborated on the contribution of the insurance sector to the economy, adding that the insurance market has been growing at a moderate rate from 2008 to 2017. “Insurance premiums provide a pool of assets that are available for investment which thereof attracts Foreign Direct Investment, creates sustainable jobs and sustainable tax income for the country hence contributing towards economic growth” Mr. Botlhole said.
Furthermore he elaborated that the public also benefits from regulation through the Authority’s consumer protection and education role. The Authority strives to ensure investor protection through the Treating Customers Fairly (TFC) Principles. The Authority also provides the public with guidance as pertaining to their rights and obligations when accessing products and services from NBFIs. He explained that for example, although an insurance policyholder may not understand the insurance industry sufficiently to make informed decisions, the Authority’s Insurance Policyholder Protection Rules provide the requisite guidance to policyholders particularly when it comes to information disclosure requirements. The Authority also undertakes various financial education initiatives to raise financial literacy levels as pertaining to the products and services offered within the NBFI sector.
