Page 29 - issue 23

Business 29

Policy

holder

protection

rules

unpacked

Oaitse M Ramasedi - Chief Executive Officer of NBFIRA.

olicy protection rules (PPR) spell out the rights of elements being transparency, good business conduct and
policyholders & obligations of Insurance Service consumer education.Since the Authority began its operations
PProviders. The commencement of PPRS represented a in 2008, significant regulatory and supervisory milestones
milestone achieved as they are the first Administrative rules were achieved and that enabled the NBFI sector to grow and
within the insurance industry to solely focus on the rights of operate in line with international standards and practices. The
policyholders. insurance industry has grown substantially in size recording
“In demonstration of the Authority’s commitment to Consumer gross written premium of 5.4 billion in 2018.
Protection and empowerment, the Authority was proud to
announce the commencement of the policy holder Protection The industry has seen new market entrants across the board
rules (PPR) which is the first insurance Administrative Rule to as well as the establishment of industry association which is a
solely focus on the rights of policyholders and foster greater commendable development as they are critical in reinforcing
transparency and accountability of industry players within the congruent in a coordinated approach.
insurance industry,” said Oaitse M Ramasedi, Chief Executive
Officer of NBFIRA. Ramasedi added that The Authority strives for higher levels
The enactment of the new regulations was necessitated by of financial literacy about services and products within the
the observation that consumers had limited understanding of insurance industry and will continue to improve its public
their rights as well as the obligations of the service providers. education efforts to this end. The protection of policyholders
BITC Chief Executive - Mr Keletsositse Olebile The insurance Industry Act (2015) and its Regulations came is strengthened through the new Insurance Industry Acts
into effect on 17th of May 2019, repelling the Insurance Act enhanced disclosure requirements largely on the part of
(987) and its regulation. the service providers. There is however some disclosure
Major objectives of policyholder protection rules are to requirement on the part of the perspective of existing policy
strengthen consumer protection by ensuring several critical holders.

www.engineermagazine.co.bw Issue 23 - Aug/Sept 2019