Treasury tweaks insurance bill
There is more emphasis on transformation but provisions for micro-insurance licences have been retained, committee told
The Treasury has agreed to changes to the insurance bill in a bid to accelerate the transformation of the industry. This follows criticisms made during hearings on the bill. Black business said it would reinforce barriers to entry in the sector, and MPs across the political spectrum supported this view. The Black Business Council and four black-owned insurance companies complained that the licensing conditions, high audit and actuarial fees, excessively demanding standards and a heavy regulatory burden served to exclude black players from the market. A delegation from the Treasury and Financial Services Board led by deputy director-general Ismail Momoniat outlined the amendments in a briefing to the standing committee on finance on Tuesday. In making the amendments, policyholder protection and the need for strong regulation had to be balanced with transformation, they said. The objectives of the bill have been amended so that they state explicitly that they are to be achieved in a m...
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