South Africa: Regulations to Improve Customer Treatment in Insurance Sector

Dec 19, 2017 | ; All Africa

National Treasury and the Financial Services Board (FSB) have published regulations to improve customer experience in the insurance services sector.

The Insurance Regulations and Policyholder Protection Rules (PPRs) form part of government's reform programme to deliver better customer outcomes across the financial sector. The Insurance Regulations were made by the Minister of Finance and the Policyholder Protection Rules were made by the Registrar of Insurance, under the Long-term Insurance Act, 1998 (LTIA) and the Short-term Insurance Act, 1998 (STIA). The regulations and PPRs form part of a bold government reform programme to improve market conduct in the insurance sector and to ensure that the industry treats its customers fairly. The reform programme also aims to ensure that incentives are aligned to ensure that less complex, good value products are provided to consumers. "These regulations and PPRs support government's objective to ensure that the right insurance products are available and accessible to all South Africans. The proposed reforms also address conduct of business risks and abuses that have been identified through supervision," said Treasury and the FSB in a statement. The regulations and PPRs will take effect from 1 January 2018, with transitional provisions provided for certain sections. The draft Regulations and PPRs were tabled in Parliament on 2 November 2017, as required in terms of sections 72(2B) and 62(4)(a)(ii) of the LTIA and sections 70(2B) and 55(4)(a)(ii) of the STIA. The period for Parliamentary review ended on 2 December 2017. The consultation process began in December 2016 when Treasury and the FSB published the proposed amendments to regulations and PPRs in December 2016. In February 2017, Treasury, together with the FSB, hosted workshops with stakeholders to engage on the changes proposed in the draft regulations and PPRs. Read more on All Africa.

Source: All Africa