1 / 10

INTERMEDIARY BODIES’ SUBMISSION TO PCOF 30 May 2008

INTERMEDIARY BODIES’ SUBMISSION TO PCOF 30 May 2008. Insurance Laws Amendment Bill. REPRESENTATIVES. Jay Ramsunder – Past President FIA (Presenter) Arnold van der Linde – President and Director FIA Chris Busschau – Past President and Director FIA

farren
Download Presentation

INTERMEDIARY BODIES’ SUBMISSION TO PCOF 30 May 2008

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. INTERMEDIARY BODIES’ SUBMISSION TO PCOF30 May 2008 Insurance Laws Amendment Bill

  2. REPRESENTATIVES • Jay Ramsunder – Past President FIA (Presenter) • Arnold van der Linde – President and Director FIA • Chris Busschau – Past President and Director FIA • Representing the views of FIA, LUASA and the Association of Black Insurance Brokers • Above representing approximately 16 000 intermediaries

  3. FOCUS AREAS • Section 48 of the Short-term Insurance Act • Section 14(7) of the Pension Funds Act • Section 49 of the Long-term Insurance Act and Section 16 of FAIS, other FAIS matters

  4. SALIENT POINTS • Rationale behind amendments to Long Term and Short Term Insurance Acts • Impact on insurance industry and consumer • Necessity for thorough consultation with industry • Historical engagement with National Treasury on industry matters • Object of Bill – organizations and institutions consulted • No consultations • Prejudice to all constituencies • Severe impact on industry and consumers • Time allowed for consultation inadequate • Bill very technical and purpose of changes unclear • Doubts whether will result in improved services

  5. PRESENT SITUATION – SHORT TERM INSURANCE INDUSTRYSECTION 48 OF SHORT TERM INSURANCE ACT • Delivery method by administrators and intermediaries beneficial to quality of product consumer receives • Insurers cannot deliver better quality • Primary delivery channel is corporate and independent intermediaries • Vast majority of products purchased delivered by above channel • Amendments will lead to uneven playing fields • Demise of smaller, competitive enterprises • Suffocate critical means of making products accessible to all consumers • Lack of interaction will result in numerous unintended consequences

  6. PROPOSAL • Immediate postponement of implementing amendments • Appropriate consultation with all stakeholders • Professional and legal opinions sought on interpretation of Bill • Intention of amendments thoroughly debated

  7. SECTION 14(7) PENSION FUNDS ACT • Concerns • Lack of appropriate advice • Impact on consumer • Upfront commission or fees • Collection of fees with consent of client • Trail fees • Supports the view of National Treasury • Remuneration should follow advice

  8. SECTION 49 LONG TERM INSURANCE ACT AND SECTION 16 FAIS • Concerns • Potential conflicts of interest • Agent v brokers • Level playing fields

  9. FAIS AMENDMENTS 14 MAY 2008 • Concerns • Aspects of communication with clients may prove impossible at this stage • “Replacement” disclosures worded very generally – need to do so whenever money moved from a bank account to a financial product?

  10. THANK YOU

More Related