Governance Risks
The Governance Risks portfolio‘s key function is to provide strategic direction to the SAIA Board and members on all governance risks related matters, which may impact the non-life insurance industry. It is also responsible for overseeing the soliciting of constructive and appropriate input from SAIA members on forthcoming legislation and policy, as well as providing collaborative leadership in resolving these issues.
The portfolio's mandate is to provide strategic direction on regulatory reform processes and to support enhanced consumer protection whilst achieving the highest standard in market conduct practices in the sector. It also assists the industry in its pursuit of excellence to promote a sustainable environment for all its stakeholders.
SAIA's Governance Risks department serves a strategic role in providing thought leadership and guidance on all governance and regulatory matters, impacting the non-life insurance industry. The portfolio's mandate is therefore to provide strategic direction on regulatory reform proposals that will:
- Ensure the creation of a conducive regulatory environment, fostering financial soundness of the non-life insurance industry.
- Promote transformation and sustainability of the industry, and that of industries servicing the non-life insurance industry.
- Support the enhancement of industry market conduct and protection for consumers in relation to non-life insurance products and services.
This is achieved by the department playing an active lobbying and advocacy role through the collation and consolidation of industry views on regulatory matters; and presenting them to the relevant authorities – the Prudential Authority (PA) and the Financial Sector Conduct Authority (FSCA) - as guided by the new Twin Peaks regulatory framework. The department also engages and represents the industry on other related legislation such as the Competition Act, National Credit Act, Financial Intelligence Centre Act and other legislation impacting the sustainability of the industry.
In line with the Twin Peaks Model of Regulation, our strategic focus is on addressing both the prudential and market conduct issues impacting the industry.
Prudential Portfolio Strategic Focus Areas
SAIA’s prudential portfolio strategic focus areas are aligned with the PA’s Regulatory Strategy for 2018-2021 which may be accessed here.
The PA has identified the following priority areas for the next three years:
- Implementation of the financial conglomerate regulation and supervision framework.
- Embedding the insurance Solvency Assessment and Management regulatory and supervisory framework.
- Establishing the regulatory and supervisory framework for significant owners.
- Transformation, financial inclusion and competition.
Market Conduct Strategic Focus Areas
SAIA’s market conduct focus areas are aligned with the FSCA’s Regulatory Strategy for 2018-2021 which may be accessed here.
The FSCA has identified six priority areas for the next three years as follows:
- Building a new organisation.
- An inclusive and transformed financial sector.
- A robust regulatory framework that promotes fair customer treatment.
- Informed financial customers.
- Strengthening the efficiency and integrity of the financial markets.
- Understanding new ways of doing business and disruptive technologies.
Some of the legislative instruments under the market conduct portfolio include:
- Conduct of Financial Institutions Bill.
- Policyholder Protection Rules (PPRs).
- Conduct of Business Returns (CBRs).
- Retail Distribution Review (RDR).
- Binder Regulations.