Africa-Press – Angola. Angolan deputies defended this Wednesday, in Luanda, the need to expand the insurance intermediation business to natural or legal persons, instead of just banks operating in this field.
The Insurance Intermediation Law Proposal, under discussion in the specialized committees of the National Assembly, due to the matter, will go to the final global vote at the plenary meeting on the 25th of this month.
Discussions in the specialty, around the proposal in question, will resume next Friday, due to the proponent having taken the legislators’ proposals for consultations, mainly at the dividing points.
By the way, deputy Esteves Hilário, from MPLA, understands that banks cannot continue to hold insurance companies and, at the same time, intermediate the insurance business.
“Banks can continue to own insurance companies and that is not a problem for us, at least at the moment, but we think they should not own insurance companies and, at the same time, intermediate the insurance business”, he maintained.
According to the deputy, the insurance business, in general, is less than one percent of GDP and, therefore, intermediation is almost nothing.
He made it known that legislators advocate that the small insurance business leave the intermediation of banks and hand it over to natural or legal persons, experts on the subject, especially young people, so that they also have an opportunity to earn a living.
He understands that it is not good, from a regulatory point of view, for a single agent to have control of the entire business, that is, to be an insurer, bank and intermediary at the same time.
In his view, controlling the entire business sector from the point of view of the risk of the financial system is dangerous, “which is why we are suggesting that small insurance businesses be created and handed over to other citizens, but not exactly the banks”.
Deputy Esteves Hilário also suggests that payments to intermediaries be made more quickly, for whom insurance companies should not have, in this regard, total freedom of what they are asked to do.
He argues that there must be a standard that defines how insurance companies will pay intermediaries, especially natural people who make insurance intermediation their livelihood and who always need to have some liquidity to survive.
“The proponent took good note of our considerations, reformulated the text of the law and on Friday we returned to the discussion”, he concluded.
On the other hand, deputy Manuel Fonseca, from UNITA, argues that banks should not mediate the insurance business, but should deal with their traditional activity.
“There needs to be a market economy with free competition. Just as this rule was presented to us, it raises the issue of a conflict of interest, which it is highly desirable that it be removed”, he expressed.
The Proposed Law on Insurance Mediation aims to modernize the national insurance mediation system, conforming it to international principles and good practices duly harmonized with the current economic and social reality, reinforcing consumer protection mechanisms in this field.
A Legislative initiative by the Executive, the Bill is structured into seven chapters, made up of 16 sections and three subsections.
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