On 23 March 2018, National Treasury of South Africa published draft amendments to the Regulations promulgated under the Long-term Insurance Act, 52 of 1998 and the Short-term Insurance Act, 53 of 1998 ("Regulations").
Inter alia, the proposed amendments to the Regulations are necessary to:
- align the Regulations with the Insurance Act, 18 of 2017 (“Insurance Act”), which was recently signed into law but is yet to commence;
- improve the current legislative framework governing premium collection and to ensure alignment between the Regulations of the Long-term and Short-term Insurance Act;
- amend the binder regulations to provide for certain procurement and transformation requirements in the insurance sector to assist in the insurers’ ability to meet its commitments under the Financial Sector Code issued in terms of section 9(1) of the Broad -Based Black Economic Empowerment Act, 53 of 2003; and
- deal with commission payable in respect of microinsurance and the funeral class of life insurance business as set out in the Insurance Act.
Comments on the draft amended Regulations must be submitted in writing on or before 23 April 2018.
It is proposed that the draft amended Regulations will take effect on 2 July 2018, to coincide with the anticipated date of commencement of the Insurance Act.