Covid-19 Outbreak SA Online Resource | More info
Insurance, Car Insurance, Funeral Cover, Life Insurance, Budget Insurance, Insurance Quotes, CompareGuru, South Africa.
Car and Household
Business
Life and Funeral
Car Insurance
Cover your vehicle
More Information
Get Quote
Pre-Owned Warranty
Cover the mechanical and electrical components of your vehicle
More Information
Get Quote
Extended Warranty
Cover the mechanical and electrical components of your vehicle
More Information
Get Quote
Scratch and Dent
Cover small dents, chips and scratches to your vehicle
More Information
Get Quote
Tyre and Rim
Cover damages to your wheels
More Information
Get Quote
Home Insurance
Cover your home and everything in it
More Information
Get Quote
Commercial Vehicle Insurance
Protect vehicles and drivers used in the day-to-day operation of your business against risks like financial loss, damage or personal injury.
More Information
Get Quote
Commercial Insurance
Provide cover against common risks and disruptions to business operations, such as theft, damage to property, employee / client injury and much more.
More Information
Get Quote
Directors and Officers Liability
Safeguard your business and key players from financial loss with the right policy.
More Information
Get Quote
Errors and Omissions Liability
Covers your business and employees against claims of negligence, poor workmanship, and more.
More Information
Get Quote
Life Insurance
Provide for your loved ones
More Information
Get Quote
Disability Insurance
Protect your paycheck
More Information
Get Quote
Serious Illness Insurance
Cover yourself for illnesses like cancer, Alzheimers, Parkinsons, strokes or heart attacks.
More Information
Get Quote
Funeral Cover
Protect your family financially and cover funeral expenses
More Information
Get Quote
Domestic Worker Insurance
Cover the person that looks after you and your family everyday
More Information
Get Quote
Menu
Home
About Us
Domestic Worker Cover Quote
Life Insurance Quote
Car Insurance Quote
Funeral Insurance Quote
Extended Warranty Quote
Pre-Owned Warranty Quote
Scratch and Dent Quote
Tyre And Rim Quote
News Room
Meet The Team
Careers
Providers
Insurance
Car Insurance
Building Insurance
Household Contents Insurance
Life Insurance
Disability Insurance
Serious Illness Insurance
Domestic Worker Insurance
All Risk Insurance
Funeral Insurance
MotorVAPS Cover
Commercial Insurance
Commercial Vehicle Insurance
Directors and Officers Liability Insurance
Errors and Omissions Liability Insurance
Support
Contact Us
Terms of Service
Privacy Policy
Disclosures
Client Letter
POPI Act
PIA Act
CIM Policy
Complaint Escalation
TCF Form

News Room

Everything You Need To Know About The New Insurance Act

Jason Snyman
2018-05-04
The Insurance Act 2017 was signed into law at the beginning of this year. Here’s everything you need to know about the legislation.
South Africa’s insurance industry is growing at an unimaginable speed. There are so many players involved that it was only a matter of time before the government began to impose regulations. The Insurance Act, 2017, was signed into law on 17 January 2018. The Act provides a united legal framework for the practical supervision of the budding South African insurance sector. But, in layman’s terms, what does it mean and why does it exist? We know that this new framework is consistent with international standards for insurance regulation and supervision. We know that the Act will replace and combine many parts of the Long-Term Insurance Act and the Short-Term Insurance Act. The date of commencement of the Insurance Act, 2017 is yet to be proclaimed. In the meanwhile, for those who would care to read the Act in its thrilling entirety, it can be found HERE. Otherwise, we’ve got everything you really need to know.
Do you know who are the best and worst insurers in SA? We found out!

The Insurance Act 2017

One notable function of the Act is that it will seek to provide stricter regulation of foreign-based insurers which are underwriting risks in South Africa. This is to throttle the solicitation of insurance and reinsurance business by foreign insurers / reinsurers from within SA. The Act will prohibit these foreign companies from soliciting business in South Africa on a cross-border basis. Unless, of course, the reinsurance company conducts reinsurance business through a branch established in South Africa. No direct insurance will be licensed, however. This is a good thing. Foreign insurers need to be monitored in order to ensure the safety and soundness of insurers in general. Furthermore, the new prudential framework – called the Solvency Assessment and Management (SAM) framework – has been developed to improve policyholder protection. It will contribute to financial stability through aligning insurers’ regulatory capital requirements with the underlying risks. Are insurers able to meet their long and short-term promises to their clients? Can the insurer remain financially stable, and continue to pay claims? The law will therefore ensure that the less-wealthy will be protected from any outcomes arising from market failures. Parliament will be able to ensure that the insurance sector is aligned with international standards. It must be inclusive, stable and live up to higher prudential standards. Unlike Parliament itself, then. Either way, the legislation aims to bring about a safe and fair insurance market. More providers of financial services will be brought into the regulatory net and micro-insurers will have an easier time accessing the market. And that’s about it. The Insurance Act 2017, in a nutshell. Start your car insurance quote.
CompareGuru Social TwitterCompareGuru Social FacebookCompareGuru Social LinkedIn

Sign up to our Newsletter now, and don’t miss a beat.

Email Address
Name
Sign Up