Draft Replacement of the Policyholder Protection Rules
The Financial Services Board (FSB) has published the draft replacement of the Policyholder Protection Rules (PPRs) made under the Long-term and Short-term Insurance Acts. The draft replacement PPRs gives effect to a number of conduct of business reforms. These reforms should be read together with the amendments to the existing Regulations of the Insurance Acts. The amendments to the Regulations and the PPRs are part of the move to Twin Peaks and the implementation of the Treating Customers Fairly (TCF) approach to improve customer protection in the financial services industry.
The conduct of business reforms which will be given effect through the PPRs includes Retail Distribution Review (RDR) and proposals of the Ombud for Long-term and Short-term Insurance relating to improved policyholder protection.
Click below to read a summary of the other reforms which will be given effect to by the replacement PPRs as well as the PPR annexures:
- Board Notice 192 of 2016 on the Proposed PPRs
- Press Release – Publication of replacement PPRs
- Annexure A – Draft Replacement of Long-term Insurance PPRs
- Annexure B – Draft Replacement Short-term Insurance PPRs
- Annexure C – Explanatory document supporting amendments
Draft Insurance Regulations
National Treasury and the Financial Services Board (FSB) has published the amendments to the Insurance Regulations that give effect to other conduct of business reforms. As stated above, this should be read together with the replacement PPRs. These Regulations and PPRs are geared at supporting Government’s objective to ensure that the right insurance products are available and accessible to all South Africans.
The proposed reforms include conduct of business risks and abusive practices that have been identified through supervision and this will be given effect within the existing regulatory framework. A comprehensive review of the Regulations will form part of the review of all conduct of business frameworks which will be done by the future Financial Sector Conduct Authority as part of the Twin Peaks reforms.
Interested stakeholders are invited to comment on the Regulations by 22 February 2017. The targeted effective date of the regulatory changes is 1 May 2017 and transitional provisions will be provided where necessary. Read the Invitation for public comment on draft insurance regulations here.
Click below to read the annexures to the Insurance Regulations:
- Annexure A: Long-term insurance act, 1998: proposed amendment of regulations made under section 72
- Annexure B: Short-term insurance act, 1998: proposed amendment of regulations made under section 70
- Annexure C: Explanatory document supporting consultation – Amendment of the regulations under the long-term insurance act, 1998 and short-term insurance act, 1998