Regulatory Alerts2021-08-18
FSCA Communication 17 of 2021: Expectations for Premium Increases on Funeral Policies
The Financial Sector Conduct Authority mandates that insurers implement fair, actuarially sound premium increases on funeral policies by ensuring correct inception pricing and avoiding exorbitant adjustments driven by COVID-19 or historic underpricing. Insurers must strictly follow the Policyholder Protection Rules regarding review frequency, timely written notice, and providing policyholders with alternatives to mitigate increases. The Authority requires insurers to demonstrate ongoing compliance through robust processes that balance corporate financial interests with the reasonable benefit expectations of existing policyholders.
Share