SAIA Projects: Microinsurance Regulatory Framework and the Financial Sector Charter
By Vivien Pearson
Proposed National Treasury Microinsurance Regulatory Framework
The SAIA has been, together with the many relevant role players in this field, very involved in the Work Groups created by National Treasury to address the proposed Microinsurance Regulatory Framework. Once the work of the various Work Groups is complete, the Work Group responsible for drafting the legislation will commence with its important work.
The SAIA has been actively participating in the Microinsurance Work Group on Product Standards, as well as the Microinsurance Work Group on FAIS. The work of these two Work Groups is in its final stages, and will be completed by the end of May 2012, if all goes according to plan. The Microinsurance Steering Committee will then consider the input of the Work Groups and the drafting of the regulations will commence.
It is envisaged that the drafting of the legislation will be completed by the end of 2012, after which the process will follow the normal route towards enactment. It is expected that the Microinsurance Legislation will come into effect in the beginning of 2013.
A serious attempt is being made to align product standards in the Microinsurance Regulatory Framework and the Financial Sector Charter Access environments as far as possible and desirable.
Financial Sector Charter
Access and consumer financial education
The SAIA has been participating in the Financial Sector Charter Access to Financial Services Working Committee in recent months. The work of this committee involves finalizing agreed new standards for products in the access pillar of the Financial Sector Charter, recently gazetted for public comment as a Sector Code for the financial services sector. For the short-term insurance industry, the standards being finalized are for short-term insurance products as well as consumer financial education.
Both the SAIA Microinsurance and Consumer Education Committees have assisted in the drafting of proposed standards in both the access products and consumer financial literacy environments, and will continue to be involved in amended proposals. The FSC Working Group is in the process of negotiating agreed standards, which will be communicated to the industry at the appropriate time.
Care is being taken to consider the proposed product standards in the Microinsurance Regulatory Framework, and to align access standards with Microinsurance standards as and when possible.
South African Insurance Association (SAIA)
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