The Financial Services Board (FSB) is investigating possible irregularities in the business conduct of SaXum Insurance, after the short-term insurer was placed into liquidation by the High Court in Johannesburg last week, leaving 3,500 claims, amounting to R15m, unpaid. "As SaXum is insolvent, it is no longer able to pay policyholder claims," said Farzana Badat, head of the FSB insurance compliance department. The FSB had been monitoring SaXum’s financial position monthly since January 2015, said Jonathan Dixon, deputy executive officer of the FSB’s insurance department. SaXum was prohibited from writing any new short-term insurance business from September 8 2016 and had been given a clear deadline to recapitalise, Dixon said. When the shareholders failed to recapitalise the business, Dixon, in his capacity as the registrar of short-term insurance, launched an urgent application on October 12 to have SaXum liquidated. SaXum’s insolvency resulted from underwriting losses due to a spi...
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