The Vanuatu National Provident Fund (VNPF) has been granted a captive licence by the Reserve Bank of Vanuatu (RBV), enabling the Fund to advance its Members Social Benefit programme. The programme is starting with the Special Death Benefit, and the Fund plans to expand into other products in the future. RBV Governor August Letlet formally presents the licence to VNPF General Manager (GM) Paul Kaun this week. VNPF provides these tailored benefits through Vanuatu Captive Insurance Services Ltd. Mr. Letlet explains that the licence allows VNPF to offer death and funeral benefits on more favourable terms than previously available. “This licence will also allow VNPF to expand its products in the future as per its investment strategies,” says 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”. The VNPF submitted its application in 2023, and it was approved in January 2024. Since approval, Vanuatu Captive Insurance Services Ltd has worked with the RBV to meet various conditions to ensure it operates in a sound and prudent manner. The Governor notes that one condition for approval is that a board member must have significant insurance experience. VNPF must also reapply to the RBV if it wants to expand into other products, such as health insurance. VNPF is tasked with receiving contributions from employers and employees and investing those funds in productive assets for its members, providing a safety net for workers at retirement age.
