JOHN GROBLER in Windhoek | Friday 1.00pm.
INSURANCE companies operating in Namibia are threatening to pull out before the implementation of controversial legislation requiring them to pay increasing amounts of their income on premiums to the government.
Sanlam (Namibia) MD Bob Meiring this week called for calm and consultation, expressing hope that sense will prevail over opinions based on bad advice. “This is legislation based on perceptions which cannot stand logical scrutiny,” Meiring said. “These are perceptions held by non-financial people in government who are not well advised.”
The brainchild of London-based insurer Alexander Howden who has, according to top industry sources, several consultants working for free for the local Ministry of Finance, the Long-Term Reinsurance Act has the backing of a few powerful Swapo politicians, who pushed it through parliament four weeks ago.
Some insurance companies, including Southern Life, have already signalled their intention to withdraw from the Namibian economy.