Regulatory Alerts2018-12-14
Update on the Future of the Premium Collection Regulatory Framework under the Short- and Long-term Insurance Acts
The Financial Sector Conduct Authority issued this communication to update stakeholders on regulatory amendments to premium collection under the Short- and Long-term Insurance Acts, which removed security requirements and introduced enhanced governance standards. Following recent industry failures, the regulator is evaluating stricter interventions such as shortening premium remittance periods, restricting qualifying intermediaries, and reclassifying collection activities as outsourcing. The FSCA will continue engaging industry participants throughout 2019 to gather insights and formulate a formal policy position that addresses third-party collection risks while urging collaborative accountability.
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