Restructuring, improved collections and premiums lifts NSSA in 2016

Restructuring, improved collections and premiums lifts NSSA in 2016

HARARE, The National Social Security Authority’s (NSSA) contributions and premiums income increased 12% to $327,7mln in 2016 compared to $292,9mln in 2015 largely driven by improved collections and a marginal increase in premiums.

During the year, contributions alone were14% up at $276.5mln from $242,8mln in prior year while premiums increased 2% to $51,2mln compared to $50.2mln the previous year.

General Manager Liz Chitiga in a statement of the financials attributed the increase in contributions to improved collections arising from stakeholder engagement.

“This resulted in more voluntary compliance despite the decline in the number of registered employees from 28,739 to 28,162 due to company closures,” she said.

For 2016, NSSA’s net premium written amounted to $107.7 mln which was a 52% increase from $106.6mln in 2015.

NSSA was constituted and established in terms of the NSSA Act of 1989, Chapter 17: 04 and is the statutory corporate body tasked by the Government to provide social security.

It currently administers the National Pension Scheme and the Accident Prevention and Workers Compensation Scheme.

In terms of legislation, the Accident Prevention and Workers compensation scheme is administered, in terms statutory Instrument 68 of 1990. The minimum insurance premium the employer is required to pay will be calculated using a risk factor dependent on the type of industry the company is involved in.  The insurance year runs from January 1 – December 31st.

According to Chitiga, claims and benefits grew 5% to $142, 6mln with pensions and other benefits amounting to $128,5mln. Accident prevention and workers compensation accounted for $7,4mln.

During the period, NSSA increased its shareholding in short term insurer NicozDiamond to 50.9% as a strategic investment to increase the Authority’s presence in the insurance sector.

However, the Authority has since notified of its intention to dispose the stake in NicozDiamond to First Mutual Holdings.

Meanwhile, the Authority achieved a profit of $105.9mln compared to $32,1mln in 2015 largely attributed to less write downs and improved contributions.

 

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