Amongst a raft of legislative and regulatory changes impacting
the financial services industry in South Africa, the Financial
Services Board ("FSB"), the authority that regulates,
inter alia, the activities of insurers and reinsurers in South
Africa, has been interacting with the industry in respect of
proposals to alter the regulatory framework under which reinsurance
business will be carried out in South Africa in future.
Currently, in order to carry out reinsurance business in South
Africa, a person or entity must be registered to do so. The local
insurance laws prohibit any person from carrying on insurance or
reinsurance business in South Africa 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
