The new application guideline and form to apply for a licence to conduct insurance business in South Africa has just been published.
Purpose of Licensing
|1.||The PA carries out its functions in relation to insurers, by:|
|●||promoting the maintenance of a sound and efficient insurance sector;|
|●||promoting public confidence in the insurance sector;|
|●||adequately protecting the interests of policyholders and the public; and|
|●||ensuring that any failure, or possible failure, of an insurer does not have the potential to significantly damage the financial system or the economy of South Africa.|
|2.||The FSCA’s objective in relation to insurers is to:|
|●||protect financial customers by –|
|○||promoting fair treatment of financial customers by financial institutions; and|
|○||providing financial customers and potential financial customers with financial education programs, and otherwise promoting financial literacy and the ability of financial customers and potential financial customers to make sound financial decisions.|
|●||assist in maintaining financial stability.|
|3.||The purpose of licensing is to ensure that applicants are fit for business and in the public interest. Applicants will be required to demonstrate that there is sufficient operational, human and financial capacity available to manage the business to be undertaken, both at the time of application and as a going concern, under both normal circumstances and in stress events. Applicants need to further illustrate that frameworks are put in place to ensure the fair treatment of financial customers.|
Click here to download the new Insurance Business Application Guideline and Form.