A worrying trend

Nhlanhla Nene, chairperson of the Portfolio Committee on Finance, has some insight into the life industry as a regional administrative manager for the major life insurance companies.

He says that there are two issues that were highlighted in the most recent long term insurance ombuds' annual report. It appears - as was earlier reported on FAnews - that there are unresolved issues around jurisdiction between the various ombuds, which could lead to some confusion.

The confusion concerning jurisdiction, doesn't end there. It appears that consumers and the media are also confused and this has led to the FSB issuing a statement clarifying what areas they are responsible for.

Back to Nene - who goes on to say that there is the worrying trend of the establishment of internal ombuds in some life offices. According to Nene this could lead to some issues being dealt with within a company and not seeing the light of day.

As an aside he did call for the building of a demographically representative and qualified intermediary force, simplified products and consumer education.

Editor's thoughts:
* His comments about internal ombuds does put a new light on the creation of the internal ombud, as this may well become another form of censorship, something the industry can ill afford.

* In terms of the jurisdiction issue, this matter will have to be resolved sooner rather than later as confusion will lead to discontent.