The following is a brief summary of what the workshops will entail.
- Binder Agreements: What are the practical ramifications for my practice?
The publication of the new Binder Regulations on 23 December 2011, caused a major upset in the industry. Insurance companies, underwriting managers and other binder holders need to align themselves with the new regulations by no later than 1 January 2013. This will entail drafting and positioning of new agreements, taking a hard look at current remuneration structures and also forcing certain players in the industry to decide what type of entity they will be, going forward. For some, it might quite possibly entail having to do away with any form of intermediation to clients.
We look at what Binder Agreements are, how they work and what you need to do in your business to ensure that you are compliant with the new regulations as contained in Sections 48(A) of the Short-term Insurance Act, as well as Regulation 6 to the Short-term Insurance Act.
- The Outsourcing Directive: Are your administrative fees legal?
The publishing of Directive159 for Long-term and Short-term Insurance has major ramifications for so-called administrators and intermediaries performing administrative functions on behalf of insurers. The outsourcing directive will also impact on underwriting managers performing administrative functions for insurers. This directive seeks to address all issues applicable to outsourcing of any part of an insurer’s business. We take a closer look at this directive and focus specifically on the impact it has on current remuneration practices, and the sub-outsourcing of administrative functions from administrators and/or underwriting managers to other intermediaries.
- Market practices relating to payment of fees: What does the Regulator not like?
The publication of Information Letter 3 of 2012 made the industry sit up and listen. The Regulator issued a no-nonsense letter, warning the industry to align its remuneration practices to those contained in the Long-term and Short-term Insurance Acts and the regulations thereto. We take a closer look at these regulations: what are you allowed to charge for, and what not?
- The great remuneration speculation: What is fact and what is fiction?
When looking at remuneration for intermediaries and underwriting managers, alike, one has to consider all of the above topics, i.e. the binder agreements, the outsourcing directive and Information Letter 3 of 2012 when determining what remuneration structures are allowable and should be in place at your business. We also take a very close look at what may legally be charged for and what may not.
- How do I move a book legally?
It has become standard practice in the Short-term Insurance Industry for FSPs to move a book of client business from one insurer to another, or from one underwriting manager to another. We unpack this process by looking at all the legal aspects, including those of law of contract and agency to determine what, if any, ways there are of moving a book.
For details of our workshops on these critical issues, please click here.