Black business attacks insurance Bill
Publish date: 13 February 2017
Issue Number: 714
Diary: IBA Legalbrief Africa
Category: South Africa
The highly technical Insurance Bill – intended to strengthen the prudential regulation of the insurance industry – was attacked by black business in Parliament last week for reinforcing the barriers to their entry into the sector. A Business Day report says the intervention by the Black Business Council and four black-owned insurance firms urging transformation of the white-dominated industry was supported by MPs across the political spectrum. It added further momentum to the drive for ‘radical economic transformation’. Representatives of the black-owned insurance firms complained that the licence conditions, high audit and actuarial fees, excessively demanding standards and a heavy regulatory burden served to exclude black players in the market. They dismissed the provisions for micro-insurance in the Bill as merely creating a ‘playground’ for blacks, while the main action took place in the established white-dominated sector of the industry.