The President of the Republic of South Africa has signed the Insurance Bill into law. The now Insurance Act, 2017, provides a consolidated legal framework for the prudential supervision of the insurance sector.
According to the draft, this will be consistent with international standards for insurance regulation and supervision, and seeks to replace and consolidate substantial parts of the Long-term Insurance Act, and the Short-term Insurance Act.
The Act further seeks to amongst other things, provide for stricter regulation of foreign based insurers underwriting risks emanating from South Africa, to deal with the solicitation of insurance and reinsurance business by foreign insurers and reinsurers from within South Africa.
It also seeks to prohibit foreign insurers and reinsurers from soliciting business in South Africa on a cross-border basis, unless the foreign reinsurers conduct the reinsurance business through a branch established in South Africa. The date of commencement of the Insurance Act, 2017 is yet to be proclaimed.