Regulatory Alerts2014-05-22
Added
Directive on Administration Fees Payable to Short-Term and Long-Term Insurance Brokers and Re-Insurance Brokers
The directive instructs the insurance industry to discontinue the practice of insurance brokers performing insurer functions and prohibits the payment of administration fees to such brokers, requiring remuneration solely via commission. Effective 1 December 2014, no administration fee may be charged, paid, allowed, given, or accepted, in strict compliance with Regulation 13 to the Long-term Insurance Act No. 5 of 1998 and Regulation 6 to the Short-term Insurance Act No. 4 of 1998. This requirement applies to all registered insurers, reinsurers, insurance agents, brokers, reinsurance brokers, and relevant industry associations.