The FSB published proposed amendments to the Policyholder Protection Rules (“PPRs”) made under the Long-term Insurance Act, 1998 and the Short-term Insurance, 1998, respectively, for public comment. The proposed amendments form part of Tranche 2.
The proposed amendments to the PPRs are necessary to
- align the PPRs with the Insurance Act, 2017 (Act No.18 of 2017) (“Insurance Act”);
- provide for certain conduct of business related requirements that will be repealed from the LTIA and the STIA through Schedule 1 to the Insurance Act, once the latter Act commences, as these conduct requirements are better placed in subordinate legislation; and
- provide for microinsurance product standards by giving effect to the National Treasury’s Microinsurance Policy Document released in July 2011.
Comments are due by 13 April 2018.
It is expected that the proposed amendments to the PPRs will come into operation on 1 July 2018 to coincide with the expected commencement date of the Insurance Act and Prudential Standards to be made under that Act.
All the documentation is available on the Treasury website.