On 17 January 2018, the President of the Republic of South Africa signed the Insurance Bill into law.
Inter alia, the now Insurance Act, 2017, provides a consolidated legal framework for the prudential supervision of the insurance sector that is 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. A copy of the Insurance Act, 2017 can be accessed here.
The Insurance Act, 2017 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, prohibit foreign insurers and reinsurers from soliciting business in South Africa on a cross-border basis unless the foreign reinsurers conduct the reinsurance business (no direct insurance will be licensed) through a branch established in South Africa.
The date of commencement of the Insurance Act, 2017 is yet to be proclaimed.
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