Regulations to improve customer treatment in insurance sector

Sunday, December 17, 2017

National Treasury and the Financial Services Board (FSB) have published regulations to improve customer experience in the insurance services sector.

The Insurance Regulations and Policyholder Protection Rules (PPRs) form part of government’s reform programme to deliver better customer outcomes across the financial sector.

The Insurance Regulations were made by the Minister of Finance and the Policyholder Protection Rules were made by the Registrar of Insurance, under the Long-term Insurance Act, 1998 (LTIA) and the Short-term Insurance Act, 1998 (STIA).

The regulations and PPRs form part of a bold government reform programme to improve market conduct in the insurance sector and to ensure that the industry treats its customers fairly.

The reform programme also aims to ensure that incentives are aligned to ensure that less complex, good value products are provided to consumers.

“These regulations and PPRs support government’s objective to ensure that the right insurance products are available and accessible to all South Africans. The proposed reforms also address conduct of business risks and abuses that have been identified through supervision,” said Treasury and the FSB in a statement.

The regulations and PPRs will take effect from 1 January 2018, with transitional provisions provided for certain sections.

The draft Regulations and PPRs were tabled in Parliament on 2 November 2017, as required in terms of sections 72(2B) and 62(4)(a)(ii) of the LTIA and sections 70(2B) and 55(4)(a)(ii) of the STIA.

The period for Parliamentary review ended on 2 December 2017.  

The consultation process began in December 2016 when Treasury and the FSB published the proposed amendments to regulations and PPRs in December 2016.

In February 2017, Treasury, together with the FSB, hosted workshops with stakeholders to engage on the changes proposed in the draft regulations and PPRs.

A total of 40 commentators provided feedback on the draft regulations and 27 commentators gave input on the draft PPRs through the formal consultation process.

Treasury and the FSB undertook a comprehensive review of all comments received, as well as further direct engagement, including workshops, with commentators.

On 1 September 2017, the draft PPRs were published for a second round of formal consultation. A total of 16 commentators provided feedback on the second draft of the PPRs and the FSB undertook a comprehensive review of all comments received in finalising the PPRs.

The supporting Annexures of the regulations are also available on National Treasury’s website at  and the FSB’s website at –


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