NBFIRA Engages Industry on Regulations for the Insurance Industry Act 2015
As part of its stakeholder engagement, the Authority conducted a workshop for the insurance industry players on the 8th of May 2019, to present new changes emanating from the recently signed Insurance Industry Regulations for the Insurance Industry Act of 2015.
In her opening remarks, Mrs. Patrinah Masalela the Director, Pensions & Insurance at the Ministry of Finance & Economic Development, stated that the signed Regulations paved way for the commencement of the Insurance Industry Act of 2015 and that the Regulations do not introduce new legal provisions but are rather an implementation tool to the provisions already in the Act. After sharing a few noteworthy highlights, she noted that “the rest of the provisions are simply the codification of existing provisions which are contained in the Prudential Rules. Mrs. Masalela reaffirmed the Ministry’s commitment in supporting the Authority in its mandate to efficiently regulate and supervise the insurance industry, thus contributing to the financial stability of the industry and nation.
During her presentation of the new changes, Mrs. Veronica Namate, Deputy Director Insurance at the Authority, highlighted the impact of the Regulations on capital requirements, professional indemnity cover & security guarantee amongst others. She also expounded on changes that will affect the Association of Underwriters. For his part, Mr. Ogona Tshoswane, Manager Insurance at the Authority expounded on the transitional arrangements put in place to enable insurance industry players to comply with the new Regulations. These include requirements for the submission of audited returns by insurance agents and brokers, as well as the extension of the preservation of records from 6 years to 7 years.
The workshop provided an invaluable platform for the Authority to engage industry players collectively and stimulated productive deliberations on the Regulations. Mr. Oaitse Ramasedi, Chief Executive Officer of the Authority provided leadership and clarity on various issues during the deliberations, and reiterated that the industry and the Authority are partners in ensuring the continued growth and development of the insurance industry in a manner that is compliant to the existing legal framework.
In his closing remarks Mr. Sriram Gade Deputy CEO (Regulatory) at the Authority, stated that the Regulations are yet to be Gazetted, which is a legal requirement before they can enter into force. He reiterated that the Authority regulates the Non-Bank Financial Institutions (NBFI) sector in line with international best practise, using a Risk-based Supervisory approach. “Today’s deliberations have been informative and robust and I believe have provided clarity on the application as well as implications of the Regulations to the Insurance Industry Act of 2015”, said Mr. Gade.
