South Africa Insurance Governance, Risk and Compliance Report 2019 - ResearchAndMarkets.com

The "Governance, Risk and Compliance - The South African Insurance Industry" report has been added to ResearchAndMarkets.com's offering.

"Governance, Risk and Compliance - The South African Insurance Industry", provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries.

The two government bodies created in pursuant to the Financial Sector Regulation Act 2017 to govern the insurance industry came into effect on April 1, 2018. The Prudential Authority (PA), under the South African Reserve Bank (SARB) and the Financial Sector Conduct Authority (FSCA), which replaced the Financial Services Board (FSB), jointly supervise the insurance industry.

The FSB supervised and regulated the industry in South Africa before its replacement by the PA and the FSCA on April 1, 2018. The PA is the prudential regulator responsible for the general administration, safety, and soundness of all financial institutions, including insurers operating in South Africa, while the FSCA is the corporate regulator responsible for the management of business conduct and protects the interests and rights of consumers.

Key Findings

• The PA and FSCA regulate the South African insurance industry
• The placement of non-admitted insurance is permitted only with an approval from the FSCA, provided no domestic insurer is providing such insurance at equitable terms
• 100% FDI is permitted in the South African insurance industry
• The key classes of compulsory insurance include third-party liability insurance for commercial flight operators, workers' compensation, insurance against oil pollution for tankers over 2,000 tons, clinical trials liability insurance for injury and damage and environmental liability insurance
• Composite insurance is prohibited in South Africa. However, composite reinsurance is permitted

The report brings together research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.

The report provides

• An overview of the insurance regulatory framework in South Africa
• The latest key changes, and changes expected in the country's insurance regulatory framework
• Key regulations and market practices related to different types of insurance product in the country
• Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in South Africa
• Key parameters including licensing requirements, permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations
• Details of the tax and legal systems in the country

Key Topics Covered:

1 INTRODUCTION

1.1 What is this Report About?

1.2 Definitions

2 GOVERNANCE, RISK AND COMPLIANCE

2.1 Legislation Overview and Historical Evolution

2.2 Latest Changes in Regulation

2.3 Legislation and Market Practice by Type of Insurance

2.3.1 Life insurance

2.3.2 Property insurance

2.3.3 Motor insurance

2.3.4 Liability insurance

2.3.5 Marine, aviation and transit insurance

2.3.6 Personal accident and health insurance

2.4 Compulsory Insurance

2.4.1 Third-party liability insurance for commercial flight operators

2.4.2 Unemployment insurance

2.4.3 Compensation for occupational diseases and injuries

2.4.4 Professional indemnity insurance for sheriffs, healthcare professionals, pension fund trustees

2.4.5 Environmental liability insurance

2.4.6 Professional indemnity and fidelity insurance for financial service providers

2.4.7 Liability insurance for ships with respect to oil pollution

2.4.8 National health insurance

2.5 Supervision and Control

2.5.1 International Association of Insurance Supervisors

2.5.2 African Insurance Organization

2.5.3 Financial Sector Conduct Authority

2.5.4 Prudential Authority

2.5.5 South African Insurance Association

2.6 Non-Admitted Insurance Regulations

2.6.1 Overview

2.6.2 Intermediaries

2.6.3 Market practices

2.6.4 Fines and Penalties

2.7 Company Registration and Operations

2.7.1 Type of insurance organization

2.7.2 Establishing a local company

2.7.3 Foreign ownership

2.7.4 Types of license

2.7.5 Capital requirements

2.7.6 Solvency margin

2.7.7 Reserve requirements

2.7.8 Investment regulations

2.7.9 Statutory return requirements

2.7.10 Fee structure

2.8 Taxation

2.8.1 Insurance premium or policy taxation

2.8.2 Withholding taxes on premium paid overseas

2.8.3 Corporate tax

2.8.4 VAT

2.8.5 Captives

2.9 Legal System

2.9.1 Introduction

2.9.2 Access to court

2.9.3 Alternative dispute resolution (ADR)

3 APPENDIX

For more information about this report visit https://www.researchandmarkets.com/r/z1ii0e

View source version on businesswire.com: https://www.businesswire.com/news/home/20190823005232/en/