In an effort to improve financial inclusion and encourage transformation of the insurance industry, the Insurance Act—which came into effect in July 2018—makes explicit provisions for microinsurance products. Companies are now able to apply for a microinsurance licence, which can include both life and non-life products. This white paper serves as a primer for companies, and covers topics such as capital required, types of products a microinsurer can sell, and transfers of policies. The paper also addresses investment of assets, governance requirements, and the role outsourcing can play.
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Licensing requirements for South African microinsurers
New regulations encourage innovation and transformation in South Africa’s insurance industry