By Hilary Mare
AFTER legislative proposals were made to convert the National Special Risks Insurance Association (NASRIA) into a State-owned enterprise (SOE), rather than it being a Section 21 association, NASRIA has now attained SOE status, Finance Minister, Calle Schlettwein, has said.
Addressing delegates at NASRIA’s 30th anniversary celebration in Windhoek last week, Schlettwein highlighted that the NASRIA Act, Act No.5 of 2017, has been passed by parliament and is signed into law.
“I am pleased to inform you that the NASRIA Act, Act No.5 of 2017, has been passed by parliament and was signed into law on the 27 September this year. This effectively ushers in the transition process for NASRIA to convert into a public company and to comply with requisite legislation in the form of the Companies Act, the Public Enterprises Act and the Short-Term Insurance Act,” he said.
NASRIA is the only insurer in Namibia which provides cover against damage to property and consequential loss caused by, inter alia, riot or civil commotion, strikes, lockouts and labour disturbances, as well as acts to overthrow or influence any State or government or any local authority with force or by means of fear, terrorism or violence. It also covers damage caused by acts with a political objective or to bring about social or economic change, or in protest against (authority) or for the purpose of inspiring fear in any section of the public.
“Over the past 30 years, NASRIA’s storyline has been one of a success. Government has never been called upon to reimburse losses. Besides, NASRIA reinsured its risks with other local and foreign reinsurers, some of which are present here today. NASRIA’s financial position has strengthened over time, with annual premiums in excess of N$46 million and a reserve base of no less than N$300 million.
“We have taken cognisance of the dynamics of NASRIA’s business, as well as the growth in the insurance industry that has led to the increased participation of private sector insurers in the NASRIA business. NASRIA has reached the point where it has become self-funding and could continue to write businesses without the backing of government as the ultimate reinsurer,” Schlettwein said.
The minister also noted that NASRIA is joining the public enterprises sector at the time when the government is implementing reforms to elevate the role of the public enterprises in the economy, by strengthening their governance framework and financial accountability.
“Public enterprises are created to provide affordable and reliable services to the public in their areas of mandate.
Enterprises in the economic and financial sectors are expected to be managed profitably and generate net economic returns to the economy and the shareholder. We expect NASRIA to be one of the leading role models in terms of these performance targets,” he said.
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