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South Africa
NATIONAL LEGISLATION OVERVIEWS
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Insurance Act, No. 18 of 2017

Long title


To provide for a legal framework for the prudential regulation and supervision of insurance business in the Republic that is consistent with the Constitution of the Republic of South Africa, 1996, and promotes the maintenance of a fair, safe and stable insurance market; to introduce a legal framework for microinsurance to promote financial inclusion; to replace certain parts of the Long-term Insurance Act, 1998, and the Short-term Insurance Act, 1998; and to provide for matters connected therewith.

Table of contents

SECTION TITLE

CHAPTER 1. INTERPRETATION AND OBJECTIVE OF ACT
1. Definitions
2. General interpretation of Act
3. Objective of Act
CHAPTER 2. CONDUCTING INSURANCE BUSINESS AND INSURANCE GROUP BUSINESS
Part 1. General principles for conducting insurance business or insurance group business
4. Principles
Part 2. Insurance business and other business of insurers
5. Insurance business and limitations on other business
Part 3. Branches of foreign reinsurers and Lloyd’s underwriters
6. Conducting of insurance business by branches of foreign reinsurers and Lloyd’s underwriters
7. Claims against branches of foreign reinsurers or Lloyd’s underwriters
Part 4. Insurance groups
8.Application of Part
9. Notification by insurer on becoming part of group of companies
10. Designation of insurance group and licensing of controlling company
11. Responsibility of board of directors of controlling company
12. Transparent insurance group structure
CHAPTER 3. KEY PERSONS AND SIGNIFICANT OWNERS
Part 1. Fit and proper requirements
13. Fit and proper requirements for key persons and significant owners
Part 2. Appointment and termination of key persons
14. Approval of appointment of certain key persons
15. Notification of appointment and change in circumstances of certain key persons
16. Termination of appointment of key persons
Part 3. Changes in control of insurer or controlling company and nominees
17. Changes in control of insurer or controlling company
18. Registration of shares in name of nominee
Part 4. Key persons or significant owners not fit and proper
19. Key person or significant owner not fit and proper or no longer fit and proper
20. Assessing if key person or significant owner is fit and proper
CHAPTER 4. LICENSING, SUSPENSION AND WITHDRAWAL OF LICENCE
21. Application of Chapter
22. Requirements for licence
23. Licensing
24. Lloyd’s underwriters and Lloyd’s licensed
25. Licence conditions
26. Variation of licence conditions
27. Suspension of licence
28. Consequences of suspension of licence
29. Withdrawal of licence
CHAPTER 5. GOVERNANCE
Part 1. Insurers and insurance groups
30. Governance framework
31. Failure to maintain governance framework
32. Auditor
33. Audit committee
Part 2. Additional governance requirements for representative offices of branches of foreign reinsurers and Lloyd’s
34. Representative office
CHAPTER 6. FINANCIAL SOUNDNESS
Part 1. Insurers and insurance groups
35. Application of Part
Financially sound condition
36. Maintenance of financially sound condition
37. Capital add-on
38. Capital and securities
39. Failure to maintain financially sound condition
Part 2. Security requirements for branches of foreign reinsurers and Lloyd’s
40. Security to be held in trust
41. Trust and trustees
42. Failure to provide or maintain security
CHAPTER 7. REPORTING AND PUBLIC DISCLOSURES
43. Information concerning beneficial interests
44. Information for supervisory purposes
45. Annual disclosures
46. Annual financial statements and accounting requirements
47. Auditing requirements
48. Additional information relating to foreign reinsurers, Lloyd’s underwriters or Lloyd’s
49. Additional matters relating to Chapter
CHAPTER 8. TRANSFERS OF BUSINESS AND OTHER SIGNIFICANT TRANSACTIONS
50. Transfer, fundamental transaction or change of institutional form
51. Acquisitions or disposals
CHAPTER 9. RESOLUTION
52. Application of Chapter
Part 1. Statutory management
53. Appointment of statutory manager
Part 2. Curatorship
54. Appointment of curator
Part 3. Business Rescue
55. Application of Companies Act to business rescue of insurers and controlling companies
56. Business rescue applications and resolutions
Part 4. Winding-up
57. Application of Companies Act to winding-up of insurers and controlling companies
58. Winding-up applications and resolutions
59. Winding-up of trusts referred to in section 41
CHAPTER 10. ADMINISTRATION OF ACT
Part 1. Applications and notifications
60. Applications
61. Notifications
Part 2. Powers and functions of Prudential Authority
62. General powers, functions and duties of Prudential Authority
63. Prudential Standards
64. Publication by Prudential Authority
65. Determination of another jurisdiction as equivalent
66. Exemptions
67. Unlicensed insurance business
68. Penalties for non-submission or late submission
69. Offences
CHAPTER 11. GENERAL PROVISIONS
70. Regulations relating to certain classes of insurance business set out in Schedule 2
71. Special exemption of certain insurers
72. Consequential amendments and transitional arrangements
73. Short title and commencement
Sch. 1. SCHEDULE 1. LAWS AMENDED [s72]
Sch. 2. SCHEDULE 2. CLASSES AND SUB-CLASSES [s1, s22, s24, s25, s26, s70]
Table 1 Classes and sub-classes of insurance business life insurance
Table 2. Classes and sub-classes of insurance business non-life insurance
Sch. 3. SCHEDULE 3. TRANSITIONAL ARRANGEMENTS [s30 and s72]
.
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