Reinsurance being insurance for insurers, connects the primary insurers and reinsurers, who purchase reinsurance for risks that exceed their retention and capacity.
The review of the reinsurance landscape in South Africa is currently under review with proposed policy decisions to be incorporated in the Insurance Bill which will shape and influence the regulatory reinsurance landscape within South Africa for many years to come.
FSB Reinsurance Regulatory Review and Solvency Assessment and Management
The Financial Services Board (FSB) has embarked on a project to review the reinsurance regulatory environment as part of their main objective of overhauling the entire supervisory landscape within South Africa. The FSB’s Reinsurance Regulatory Review Project falls under the ambit of the FSB’s Solvency Assessment and Management (SAM) regime, which will ultimately be drafted as legislation and incorporated into the new Insurance Bill.
The main focus of the FSB’s new SAM initiative is centered on risk and capital management and is based on the European Union’s Solvency II Directive (2009/138/EC).
The key objective of the final SAM framework is to enhance the protection of the rights of policyholders of insurance products.
Board Committee on Reinsurance
On a quarterly basis the Board Committee on Reinsurance meets to discuss matters relevant to the wider reinsurance and insurance industry. The Committee is made up of the CEOs or Managing Directors of all the registered short-term insurance Reinsurers in South Africa. These meetings typically focus on legislative changes, transformation challenges and progress, and insurance risks as relevant to Reinsurers.