By Anita Roberts
Copyright dailypost
The Vanuatu National Provident Fund (VNPF) will be advancing its Members Social Benefit program, starting with the Special Death Benefit, and expanding into other products in the future.
The Reserve Bank of Vanuatu (RBV) has granted VNPF a captive licence to provide these more tailored benefits for members through Vanuatu Captive Insurance Services Ltd. The Governor August Letlet presented the licence to the VNPF General Manager (GM) Paul Kaun on Monday.
Captive insurance is a type of self-insurance where a company or organisation forms its own insurance company allowing it to retain the underwriting profits rather than paying them to an external insurer.
“This licence will enable VNPF to offer death and funeral benefits to its members at a more favourable terms to what it has previously offered. This licence will also allow VNPF to expand its products in the future as per its investment strategies,” said Mr. Letlet.
“It will also enable the institution to invest in building its internal capabilities to manage its insurance portfolio subject to ongoing collaboration with the RVB to ensure it achieves its business strategies.”
VNPF submitted its application to the regulator in 2023 when the RVB Governor Letlet was the chairman of the VNPF Board, and it was approved in January 2024. Over the past months, the Vanuatu Captive Insurance Services Ltd has worked closely with RBV to meet various conditions, ensuring it operates in a sound and prudent manner.
One of the conditions for approval was that a board member must have significant insurance experience, and if VNPF wants to expand into other products, such as health insurance, it will need to apply again, according to the Governor.
VNPF is designed to provide a safety net for workers at retirement age and benefits through the management of their savings.
The Fund is tasked with receiving contributions from employers and employees and investing those funds in productive assets for its members.
The RBV Governor Letlet handed over the captive licence to GM Kaun in the presence of the board members, staff, the Vanuatu Captive Insurance Services Ltd that will manage the tailored products on behalf of VNPF, Deputy Prime Minister and Minister of Finance Johnny Koanapo, dignitaries and other stakeholders.
