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Regulatory Update: SA Insurance

First update of 2020

 

Over the last two months, we have seen unprecedented developments unfold globally and across the insurance industry as well as in our own private and professional lives. As such, it is no surprise that the industry and regulatory updates are heavily weighted towards COVID 19 matters.

We have seen our insurance clients dealing with matter such as enhanced regulatory reporting, rapidly shifting risk profiles and the question of whether or not to conduct an out of cycle ORSA, all while solving significant operational challenges related to working from home, delivering as an essential provider and maintaining a financially sound insurance business. Many insurers have reacted swiftly with measures such as premium discounts, payment holidays, cash back advances and enhanced product offerings. But the reality is that nobody knows with any certainty how matters will continue to develop and whether these interventions will have the anticipated effects. The industry continues to closely monitor the impacts on premium volumes, claims, lapses and expenses as we hopefully move to Level 3 lockdown by the end of this month.

The regulators are also keeping a close watch on matters, as you would no doubt have experienced through intensified reporting requirements, among others. Further to this, the regulators have issued numerous industry communications, including easing a number of important reporting timelines.

We have attempted to summarise the most salient of these for you in this update, and we hope you find this helpful during this time of turmoil and uncertainty. We have also included a bonus article from two of our insurance leaders on another industry hot topic: the role of the HAF in IFRS reporting.
 

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