Independent intermediaries authorised by long- and/or short-term insurers to directly collect premiums are now exempt from certain provisions in the 1998 Short-term Insurance Act, 1998 Long-term Insurance Act and related regulations.
The exemptions follow a position paper, published in April 2019 by the FSCA, setting out proposals on the future regulatory framework for the collection of insurance premiums. One year later, April 2020, the FSCA also published a communication that set out the background, current approach and thinking of the FSCA and requested feedback from stakeholders.
Based on the comments received as well as a consultation process, the FSCA has now released Notices for the exemption for direct collection of premiums for both Short- and Long-term (ST and LT). The various definitions as well as both the extent and conditions of exemptions are defined in the Notices.
Click here to download FSCA INS Notice 19 of 2020 – Exemption for direct collection of premiums ST
Click here to download FSCA INS Notice 20 of 2020 – Exemption for direct collection of premiums LT
Click here to download Comments and Responses – Consultation on draft exemption for direct collection of premium.
Related article: Proposed changes to premium collection – FSCA draft notices