The Financial Services Board ("FSB"),
the authority that regulates the activities of insurers and
reinsurers in South Africa, is looking at proposals to alter the
regulatory framework under which reinsurance business will be
carried out in South Africa in future. This may have an impact on
foreign reinsurers and Lloyd's underwriters that do write or
intend writing reinsurance business in South Africa.
Currently, in order to carry out reinsurance business, a person
or entity must be registered to do so. The Short-term Insurance
Act, 19981 ("STIA"),
prohibits any person from carrying our short-term insurance
business (i.e. indemnity insurance) unless that person is licensed
to do so. The FSB cannot issue a license unless the applicant is a
public company incorporated in South Africa. There are also ongoing
requirements for a registered insurer or reinsurer, in order to
maintain its license, to ensure that its business is in a
financially sound condition and that it
