National Treasury has issued a media statement indicating that the Standing Committee on Finance (SCOF) is calling on the public to make written submissions on the Insurance Bill, 2016. The SCOF plans to arrange public hearings in February 2017.
The Bill was approved by Cabinet in November 2015 and tabled in parliament in January 2016. The Bill essentially forms part of the Twin Peaks reforms which will change South Africa’s financial regulatory and supervisory framework. The Twin Peaks reform will introduce prudential supervision of the insurance sector and the Bill provides a legal framework which is consistent with international standards on insurance regulation and supervision. The Bill also seeks to replace and consolidate parts of the Long-Term and Short-Term Insurance Acts relating to prudential supervision.
The aim of the Bill is to promote the maintenance of a fair, safe and stable insurance market by creating a legal framework for insurers that will:
- enhance financial soundness, insurance group supervision and stronger reinsurance arrangements;
- increase access to insurance through a dedicated micro-insurance framework;
- strengthen the regulatory requirements in terms of governance, risk management and internal controls for insurers; and
- align with international standards.
Click here to read the updated version of the Insurance Bill as it was tabled in parliament, after changes were made from the last public consultation process.