Luanda - The Banks will continue to mediate insurance in any branch of such activity within the scope of the draft Law on Insurance Mediation. The bill was approved on Friday by Parliament's Specialized Committees.
Regarding the follow-up of the flap (for the singular persons), this service will be restricted to the products marketed by the bank itself.
The bill in appreciation, which was discussed in detail by the specialized committees of the National Assembly, due to the matter, goes to the final vote at the plenary meeting of the 25th of this month.
Throughout the discussions, in the specialty, some parliamentarians defended the departure of the bank in the intermediation of the insurance business, moved by the fear of conflicts of interest in this domain.
In this regard, the chairman of the Angolan Agency of Regulation and Supervision Agency (Arseg), Elmer Serrão, said that today the bank is fundamental for the Angolan insurance market, fundamentally in terms of insurance massification and financial literacy.
According to him, the intermediary's relationship with his client is reliable, which takes time to establish himself.
He found that, as proponent, they brought a common view in several jurisdictions that are embodied in the harmonious coexistence of various insurance distribution channels, namely in mediation through bank financial institutions
He said it was natural that there is fear that in this last channel the rights of borrowers may be harmed, taking into account the relationship between banks and insurers.
“What we have done is to improve the law, put a set of mitigation factors of these risks and define their action well in follow -up of insurance mediation, from the moment the law is approved', he said
Similarly, he acclaimed that, regardless of the banks, they continue to be supervised by the National Bank of Angola (BNA), whenever a bank aims to develop insurance mediation activity, should be registered with the insurance activity supervision body, ARSEg.
He said that among the 24 insurers who operate in the Angolan insurance market, 12 have security bank agreements and, among these 12, are the five largest insurers in the country.
'Therefore, 73 percent of total market production corresponds to these five insurers,' he emphasized.
According to the ArsEg PCA, 15 percent of the total prizes issued by insurers, about 48 billion kwanzas is the result of the Security Banking.
For themselves, removing the secure bank from the insurance market would cause a change in the configuration between the competitiveness of various distribution channels, which would impact on technological innovation and emergence of new products optimizing products.
Noted that the withdrawal would still have an impact on reducing the proximity between the citizen and the insurance, because the citizen is closer to the bank.
According to the head in the Life Branch, until September 2023, the Security Banking accumulated 39 billion kwanzas of gross awards and of this amount 35 billion kwanzas corresponding to the mediation of insurance through Banks. DC/VIC/DOJ
