1. REGULATORY
1.1 Which government bodies/agencies regulate insurance
(and reinsurance) companies?
South Africa has a sophisticated system of financial sector
regulation known as the "Twin Peaks" system of
regulation, similar to the Australian Twin Peaks model.
The prudential regulator, known as the Prudential Authority (the
"PA"), is responsible for the first
peak, and is charged with the regulation of banks, insurers,
cooperative financial conglomerates and certain market
infrastructure. In essence, the first peak is dedicated to the
maintenance and enhancement of financial stability in the South
African financial services sector.
The second peak of regulation is the market conduct regulator
known as the Financial Sector Conduct Authority
("FSCA"), which regulates the conduct of
financial institutions. The main task of this separate and
independent body is the deterrence of misconduct and protection of
consumers of financial products and services.
