Insurance Regulatory Compliance Audit3/30/2021
Objectively speaking, the benefits of insurance cover far outweigh the disadvantages.This is because insurance cover permits businesses and home owners to recover quickly after major negative events and protects purchases like homes, motor vehicles and valuables.
![]() This is driven by the fact that the Financial Services Board (FSB) takes a thorough approach to regulation, recognizing the scale and development of the South African market and the need for effective market conduct as well as prudential regulation. South Africa is home to the largest insurance market in Africa. The South African market generates 90 of Africas life insurance income and has the second highest life insurance penetration in the world after South Korea. These range from difficult new business, investment and regulatory environments, geopolitical uncertainty in certain parts of Africa, social changes and technological advancements as well as uncertain economic environments. The sector has experienced a promulgation of regulatory legislation which has improved the level of compliance with the international standards body, the International Association of Insurance Supervisors (IAIS). There would also be no collective body for communication or collective bargaining purposes. Insurance Regulatory Compliance Audit Professional And LegalRegulatory Bodies and Associations, therefore, ensure there are minimum professional and legal standards in place, supported by Compliance functions to ensure adherence to accepted laws and governance. The regulatory intervention is to ensure insurers deliver on the promises made to their markets. This assists in curbing the negative perception of the industry. For the market to continue to grow, the industry needs to manage its reputation by respecting all regulations and continuing to increase access to insurance products for all customers. Financial advisers and brokers must be authorised to provide financial advisory and intermediary services. ![]() Our standards are as good as any in the world and, in fact, South Africa is a world leader in Financial Services Sector standards, says Healy. The Financial Advisory Intermediary Services Act 2002 (FAIS) was introduced from 01 July 2004 and mainly regulates the Intermediary sector. Prudential relates to the financial management side of the industry such as Insurer Income Statements and Balance Sheets and this regulatory monitoring function will be transferred from the Financial Services Board to the Reserve Bank under National Treasury. Conduct refers more to the supplier, product, service, relationship and customer communication side of the Insurance industry, all in the ultimate interests of Treating Customers Fairly. The FSB is the official Market Conduct Authority, however, an additional Joint Committee between the FSB, Reserve Bank and National Treasury, will be formed to resolve any conflicts within the regulatory twin peaks.
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