Saturday, November 28, 2020

Shake up in the life Insurance sub-sector

Changes in the legislation governing the insurance sector will see big players in the industry being forced to restructure some of their subsidiaries.

Already the Botswana Insurance Holdings Limited (BIHL) has confirmed changes on some products and services at one of its subsidiaries – Botswana Life.

This week, it emerged that the enactment of the new Retirement Fund Act, under the purview of NBFIRA (Non-Bank Financial Institutions Regulatory Authority) has forced Botswana Life to launch an umbrella Fund. The Fund, known as Life Retirement Annuity Fund is now housing all the Botswana Life’s previous existing retirement policies. The policies include Mompati, Offshore Gold and Botswana Citizen Pension amongst others.

Botswana Life says an administrator will be appointed as a third-party service provider tasked with protecting the interests of investors through independently verifying the assets and valuation of the Fund. Other responsibilities of

the Administrator include day-to day operations of the Fund such as record keeping, contribution collection and benefit payments.

“We are confident that the Botswana Life Retirement Annuity Fund will serve our clients and policyholders well and is yet another example of our vision to be Botswana’s first choice in life insurance-based financial solutions and advisory services, with a holistic desire to ensure we help create legacies”, said Botswana Life Chief Executive – Ronald Samuels.

Samuels also spoke to the new governance of the Fund Administrators. He noted that these developments are per NBFIRA’s oversight and control and will not undermine existing policy rights and benefits.

As regards existing clients, all rights and obligations relating to one’s membership will be transferred to the Botswana Life Retirement Annuity Fund in accordance with the provisions of the Retirement Fund Act.

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