NASSAU, BAHAMAS — The 2022 National Insurance Board report revealed that NIB collected a “record high” of well over half a million dollars through prosecuting delinquent payers, with just over 700 prosecutions actioned that year.
According to NIB’s 2022 annual report, tabled in Parliament on Wednesday, there was a 31.9 percent decline in amounts collected through Installment Agreements compared to 2021; however, the total collected through prosecutions reached a record high of $676,470, with 709 prosecutions actioned throughout the year.
The report also revealed that the total net contribution in 2022 was $290 million, compared to $257.7 million in 2021, $226 million in 2020, and $287 million in 2019. Investment income in 2022 was $69.3 million, down from $77.4 million in 2021, $45.2 million in 2020, and $68.5 million in 2019.
The deficiency in income over expenditure in 2022 was -$57.1 million. For NIB, 2022 marked a deficit for the seventh consecutive year. The deficit narrowed slightly by $3.3 million, from $60.4 million in 2021 to $57.1 million in 2022, reducing total reserves to $1.44 billion.
In the 2022 fiscal year, net contribution income grew to $290.5 million, marking a 12.7 percent increase from the previous year and surpassing the 2019 pre-pandemic benchmark of $287.1 million.
As of December 31, 2022, the number of persons contributing to the fund increased by 5.1 percent, reflecting growth across all categories. Self-employed contributors increased by 26.7 percent.
In 2022, contributing employers stood at 12,488, contributing self-employed persons numbered 8,566, and active employees were estimated at 133,000.
“While the investment portfolio provided some stability, the average return during 2022 was 5 percent, down from 5.5 percent. Investment income declined by $8.1 million, or 10.5 percent, from $77.4 million in 2021 to $69.3 million. Holdings for certificates of deposit declined from $6.6 million to nil. Despite these declining figures, at the end of 2022, the Annual Insurance Fund’s investment stood at $1.166 billion, relatively unchanged from 2021,” the report noted.
The report also noted that overall, claims received were up 6.5 percent.
There was an increase in the number of claims awarded for all three benefit types, with long-term and industrial benefits reflecting a 24.5 percent and 31.1 percent increase, respectively.
Benefit expenditure increased by $26.1 million, or 8 percent, from $327.5 million in 2021 to $353.5 million. The increase in short-term expenditure was mainly due to a rise in unemployment benefit payments, while the increase in injury benefits and medical care payments were the primary reasons for the rise in industrial benefit expenditure. At the end of 2022, over 45,000 persons received monthly pension payments.
