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The funeral insurance should be subject to stricter supervision since the Insurance Act, which came into force on July 1, introduces new rules governing the sector and opens up the way to the regulation of microinsurance
. The law and amendments to the rules of protection of policyholders, which would enforce standards for microinsurance products, announced Friday the Treasury. Said Johan Ferreira, Legal and Compliance Manager at African Unity Life
Microinsurance refers to insurance products designed for low-income people
. Requests for microinsurance and funeral policy must be completed within 48 hours of receipt of all necessary documents, "said Ferreira. The maximum funeral policy benefit would be capped at Rs 100 000.
Caroline da Silva, Executive Director of Regulatory Policy at the Financial Services Conduct Authority (FSCA), told Business Day that consumers were using funeral policies as large-payout investments that could be as high as R500,000. She added that the microinsurance framework was intended to facilitate the entry of new businesses, which should increase access to insurance, the Treasury said. of the Financial Sector Regulation Act, or Twin Peaks, which came into effect on April 1. Under this law, the Reserve Bank is now the prudential authority responsible for ensuring the financial soundness of banks and insurers
. the FSCA, is responsible for regulating the conduct of banks and insurance companies in the market.
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