In partnership with
  • The Ramaphosa Plan

    The president said on Friday that the work "starts now". He wasn't wrong, writes Pieter du Toit.

  • Stimulus recap

    Seven key points in the president's package of economic reforms and spending plans.

  • Supporting role

    Meet the members of President Cyril Ramaphosa's new 10-person advisory panel on land reform.

Loading...

New Insurance Act to come into effect - Treasury

Jun 26 2018 18:06

The new Insurance Act of 2017 will come into effect on July 1, said Treasury.

Treasury issued a statement on Tuesday, indicating that the act was assented by the president in January this year.

 The act sets out a legal framework for regulation and supervision of insurers and insurance groups in terms of Twin Peaks.

“This will ensure the safety and soundness of insurers, enhance the protection of policyholders and potential policyholders, promote broad-based transformation of the insurance sector, and contribute to the stability of the financial system in general,” the statement read.

The act also introduces a micro insurance framework, to facilitate the entry of new firms, Treasury explained. This should increase access to insurance for all South Africans.   

Under the new insurance act, all prudential requirements in the long-term insurance act of 1998 and short-term insurance act of 1998 are repealed. It will provide for a two-year transition period for insurers to migrate from the existing to the new legal framework, said Treasury.

Non-prudential sections in the acts will remain in force, in parallel with the new prudential requirements of the insurance act pending the enactment and implementation of the Conduct of Financial Institutions Bill, Treasury concluded.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

treasury  |  insurance
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think of President Cyril Ramaphosa's economic stimulus plan?

Previous results · Suggest a vote

Loading...