Image
Icon

Directory

IconActuaries
IconAssociations & Institutes
IconAuditors
IconBBBEE Consulting and Verification Agencies
IconBusiness Chambers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCall Centre Outsourcing & Sales
IconCompliance
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconEducation and Training
IconFAIS
IconHuman Resources
IconInformation Technology and Software Partners
IconLegal
IconLife Insurance Companies
IconLife Insurance Products
IconOmbud
IconOutbound Sales
IconPolicy Administration
IconPolicy Trading
IconPublications
IconRe-insurance Companies
IconRegulatory Authorities
IconSales and Sales Management
IconSocial Grants (Government)
IconSurveys and Research
IconTraining Courses & Workshops
IconWellness Programs
Image
  Subscribe To »

Insurance Bill to get transformation emphasis

Published

2017

Wed

17

May

 

Legalbrief Today reports:

The Treasury has agreed to changes to the Insurance Bill in a bid to accelerate the transformation of the industry. A Business Day report says this follows criticisms made during hearings on the Bill. Black business said it would reinforce barriers to entry in the sector, and MPs across the political spectrum supported this view. The Black Business Council and four black-owned insurance companies complained that the licensing conditions, high audit and actuarial fees, excessively demanding standards and a heavy regulatory burden served to exclude black players from the market.

A delegation from the Treasury and Financial Services Board said in making the amendments, policyholder-protection and the need for strong regulation had to be balanced with transformation. The objectives of the Bill have been amended so that they state explicitly that they are to be achieved in a manner that is consistent with the Constitution and with reference to transformation of the insurance sector. Transformation has been defined in reference to the Broad-Based Black Economic Empowerment Act. Amendments have been made to the section on licensing so that applicants for licences would need a ‘clear plan to meet transformation objectives’.

A source that I approached for comment on the article was reluctant to speculate on whether this may lead to delays in the introduction of certain RDR proposals.

The FSB’s “Status Update: Retail Distribution Review – status as at December 2016” (at page 44) states: "The FSRB is currently at a relatively advanced stage of the legislative process and it is hoped that it will be promulgated by the end of the first quarter of 2017."

The Insurance Bill was tabled on 28 January 2016, while the FSRB was being processed by the Select Committee on Finance. The Committee then had clause by clause deliberations on the proposed amendments to the FSRB with the National Treasury and the SARB on the 3rd of May 2017.The Insurance Bill now needs to be revised to be properly aligned with the FSRB.

I think the Insurance Bill has still some way to go and I would not like to make any predictions in this regard. However, all the signs seem to indicate that the FSRB is close to completion and, once signed into law, will be the legislation that will bring about the greatest number of changes that have been tabled in the various RDR proposals.

 
Source: Paul Kruger: Moonstone Compliance (Pty) Ltd
 
« Back to previous page Print this page » |
 

Breaking News »

Why I love FAIS

By Tamara Jacobsen: Director- Applied Learning Academy The provisions of the Financial Advisory and Intermediary Services Act, 2002 (FAIS) have been in place for more than a decade now. Financial advisors, ...
Read More »

  

CPD Revisited

A reader recently wrote: I provide training on behalf of a registered medical scheme to accredited brokers on medical scheme benefit options, underwriting and processes. I recently attended a broker training ...
Read More »

  

iMfolozi Challenge benefits anti-poaching efforts in KZN

The Old Mutual Wild Series iMfolozi Challenge, a 55km mountain bike ride through Hluhluwe-iMfolozi Game Reserve in Northern KwaZulu-Natal, is just around the corner. The ride is one of the more unique in South ...
Read More »

  

Twin Peaks making grim progress

In the early days of “The Pill” the UCT rag magazine, Sax Appeal, reported on a new book by the Pope titled: “The pill’s grim progress. ” No doubt, the same scepticism accompanies ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Retirement »

Image

Short-term »

Advertise Here
Image
Image
Image
Image
Advertise Here

From The Glossary »

Icon

Quintile:

A value that divides a sample of data into five groups containing (as far as possible) equal numbers of observations.
More Definitions »

 
 
By using this website you agree to the Terms of Use.
Copyright © Stoker Risk & ICT (Pty) Ltd 2004 - 2017.
All Rights Reserved.
Icon

Advertise

  Icon

eZine

  Icon

Contact IG

Icon

Media Pack

  Icon

RSS Feeds