As a result of increasing concerns that consumers are potentially experiencing poor outcomes emanating from the sale of add-on insurance policies at point of sale through motor dealerships or as part of vehicle financing arrangements, the FSCA initiated a project focusing on the sale of these policies. This led to a request from the FSCA for the relevant insurers to furnish information on add-on insurance policies.
The FSCA has now published FSCA Communication 54 of 2020 (INS) to inform licensed insurers of the FSCA’s decision to extend the timeline to submit the information requested in terms of the previous communication (FSCA Information Request Notice 4 of 2020 (INS)).
In terms of the information request, all relevant insurers were required to submit the information requested by not later than 30 November 2020. After careful consideration, the FSCA confirms in the most recent communication that an extension for the submission of the requested information has been granted to 31 January 2021.
Related article: Add-on insurance policies sold – FSCA requests information from insurers.