Proposed regulatory changes that will allow foreign reinsurers
to operate branches alongside locally registered professionals for
the first time are expected by the end of 2016.
Amidst a raft of legislative and regulatory changes to be
implemented in South Africa over the next two years, we expect to
see draft rules pertaining to reinsurance to be published during
the second quarter of 2016. Following a period set aside for public
commentary, the changes will likely come into force in the final
quarter of the year.
The new rules are likely to be well received by the market and
will result in a substantial number of foreign reinsurers
establishing branches in South Africa. We also anticipate that
foreign reinsurers operating via subsidiaries registered in the
local market will consider closing such subsidiaries and operating
from the parent company by way of a foreign branch.
The changes will also likely include limits on an insurer
directly or indirectly reinsuring more than 75% of premiums to
either a foreign re/insurer on a cross-border basis, a branch of a
foreign reinsurer, a professional reinsurer, or another direct
insurer in South Africa. The same limitation would apply for a
direct insurer conducting reinsurance business as well as a
professional reinsurer. Furthermore, the proposal is that foreign
reinsurers will be prohibited from soliciting business in South
Africa on a cross-border basis.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
In this publication, we address how Dubai is leading the way in the application of technology to its healthcare insurance system and how the health insurance law is developing around these initiatives.
On 17 April, the National Treasury and the Financial Services Board ("FSB") published for comment the draft Insurance Laws Bill, 2015 ("the Bill").
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).