Re/insurers face agonizingly busy period to implement Insurance Bill provisions
South Africa’s Insurance Bill 2016 has been a long time coming but is now set to be promulgated during the first half of 2018.
Transitional provisions relating to the majority of requirements have been indicated, generally ranging from six months to two years.
Re/insurers will have a period of two years to pursue conversion of their registration to licenses with detailed classes and sub-classes set out under the Bill and Lloyd's will need to comply within 18 months of the effective date.
However, shorter periods will apply to certain provisions. For example, reporting on the structure of group of companies must be done within two months from the effective date.
The process of full compliance will likely be intensive from the effective date of the Bill until the end of the envisaged two year period and will require substantial time investments on the part of the legal and compliance departments of affected companies.
You can read the rest of our insurance predictions here.