Summary
GlobalData’s "Governance, Risk and Compliance - The South African Insurance Industry", report is the result of extensive research into the insurance regulatory framework in South Africa.
It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries.
The report brings together GlobalData’s research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.
The report provides insights into the governance, risk and compliance framework pertaining to the insurance industry in South Africa, including -
- An overview of the insurance regulatory framework in South Africa.
- The latest key changes, and changes expected in the country’s insurance regulatory framework.
- Key regulations and market practices related to different types of insurance product in the country.
- Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in South Africa.
- Key parameters including licensing requirements, permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations.
- Details of the tax and legal systems in the country.
Key Highlights
- The PA and FSCA regulate the South African insurance industry.
- The placement of non-admitted insurance is permitted only with an approval from the FSB, provided no domestic insurer is providing such insurance at equitable terms.
- 100% FDI is permitted in the South African insurance industry.
- The key classes of compulsory insurance include third-party liability insurance for commercial flight operators, workmen’s' compensation, insurance against oil pollution for tankers over 2,000 tonnes, clinical trials liability insurance for injury and damage and environmental liability insurance.
- Composite insurance is prohibited in South Africa. However, composite reinsurance is permitted.
Scope
- The report covers details of the insurance regulatory framework in South Africa.
- The report contains details of the rules and regulations governing insurance products and insurance entities.
- The report lists and analyzes key trends and developments pertaining to the country’s insurance regulatory framework.
- The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
- The report provides details of taxation imposed on insurance products and insurance companies.
Reasons to buy
- Gain insights into the insurance regulatory framework in South Africa.
- Track the latest regulatory changes, and expected changes impacting the South African insurance industry.
- Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
- Understand key regulations and market practices pertaining to various types of insurance product.
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Table of Contents
1 INTRODUCTION 6
1.1 What is this Report About? 6
1.2 Definitions 6
2 GOVERNANCE, RISK AND COMPLIANCE 8
2.1 Legislation Overview and Historical Evolution 9
2.2 Latest Changes in Regulation 11
2.3 Legislation and Market Practice by Type of Insurance 21
2.3.1 Life insurance 25
2.3.2 Property insurance 29
2.3.3 Motor insurance 33
2.3.4 Liability insurance 35
2.3.5 Marine, aviation and transit insurance 36
2.3.6 Personal accident and health insurance 36
2.4 Compulsory Insurance 41
2.4.1 Third-party liability insurance for commercial flight operators 41
2.4.2 Unemployment insurance 42
2.4.3 Compensation for occupational diseases and injuries 44
2.4.4 Professional indemnity insurance for sheriffs, healthcare professionals, pension fund trustees 45
2.4.5 Environmental liability insurance 46
2.4.6 Professional indemnity and fidelity insurance in for financial service providers 46
2.4.7 Liability insurance for ships with respect to oil pollution 47
2.4.8 National health insurance 47
2.5 Supervision and Control 49
2.5.1 International Association of Insurance Supervisors 49
2.5.2 African Insurance Organization 50
2.5.3 Financial Sector Conduct Authority 50
2.5.4 Prudential Authority 51
2.5.5 South African Insurance Association 51
2.6 Non-Admitted Insurance Regulations 52
2.6.1 Overview 52
2.6.2 Intermediaries 53
2.6.3 Market practices 53
2.6.4 Fines and Penalties 54
2.7 Company Registration and Operations 55
2.7.1 Type of insurance organization 56
2.7.2 Establishing a local company 56
2.7.3 Foreign ownership 57
2.7.4 Types of license 57
2.7.5 Capital requirements 58
2.7.6 Solvency margin 58
2.7.7 Reserve requirements 62
2.7.8 Investment regulations 62
2.7.9 Statutory return requirements 63
2.7.10 Fee structure 65
2.8 Taxation 71
2.8.1 Insurance premium or policy taxation 71
2.8.2 Withholding taxes on premium paid overseas 71
2.8.3 Corporate tax 71
2.8.4 VAT 72
2.8.5 Captives 73
2.9 Legal System 74
2.9.1 Introduction 74
2.9.2 Access to court 75
2.9.3 Alternative dispute resolution 76
3 APPENDIX 78
3.1 Methodology 78
3.2 Contact GlobalData 78
3.3 About GlobalData 79
3.4 GlobalData’s Services 80
3.5 Disclaimer 81
List of Tables
Table 1: Insurance Industry Definitions 6
Table 2: South Africa - Insurance Regulatory Framework Key Features 8
Table 3: South Africa - Maximum remuneration payable for binder function 14
Table 4: South Africa - Maximum commission rates for individual and group policy 19
Table 5: South Africa - Commission Rates for Health Insurance Policy 24
Table 6: South Africa - Life Insurance Regulatory Framework 25
Table 7: South Africa - Maximum cost of credit life insurance 26
Table 8: South Africa - Property Insurance Regulatory Framework 29
Table 9: South Africa - SASRIA Annual and Monthly Premium Rates 32
Table 10: South Africa - Motor Insurance Regulatory Framework 33
Table 11:South Africa - Liability Insurance Regulatory Framework 35
Table 12: South Africa - Levy payable for Prudential Authority (PA) 67
Table 13: South Africa - Levy payable for Financial Sector Conduct Authority (FSCA) 68
Table 14: South Africa - Corporate Tax Rates for the Financial Year 2018 72
List of Figures
Figure 1: South Africa - Insurance Supervision and Control at Various Levels 49
Figure 2: South Africa - Insurance Regulatory Frameworks for Company Registration and Operation 55
