N$4.4m recovered for consumers as complaints rise

The Namibia Financial Institutions Supervisory Authority helped 81 consumers recover N$4.4 million from financial institutions in 2025, as complaints about insurance claims, funeral benefit payments and micro-loan interest continued to trouble the sector.

“The total payments to complainants decreased to N$4.4 million in 2025 from N$11.8 million in 2024, benefiting 81 complainants,” the regulator says.

Long-term insurance recorded the highest number of complaints with 149 cases, followed by short-term insurance with 106 and microlenders with 84.

Pension funds accounted for 52 complaints, medical aid funds for 10, while capital markets recorded two.

Together, long-term insurance, short-term insurance, microlending and pension funds accounted for 97% of all complaints received during the reporting period.

Long-term insurance accounted for the largest share of money recovered, at N$2.1 million. Pension funds followed with N$1.1 million, while short-term insurance disputes resulted in N$1 million being recovered for complainants.

Consumers involved in microlending disputes recovered N$204 000,while medical aid fund complaints accounted for N$54 000.

The regulator attributes the increase in complaints largely to problems in the short-term insurance, long-term insurance and microlending sectors.

The main grievances included delays in processing claims, rejected insurance claims and interest charges that consumers considered excessive or incorrect.

Other common complaints concerned unsatisfactory or undelivered services, delays in funeral claim payments and disputes over the amounts paid by financial institutions.

Funeral claims can be particularly significant for households that depend on insurance benefits to cover burial expenses, while disputed loan interest can add to the financial pressure on borrowers already struggling to meet their obligations.

Despite receiving more complaints, the regulator resolved 93% of the 403 cases recorded during 2025. The remaining 7% were carried over into 2026 for further determination.

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