1. DEON VAN STADEN
FSB
SOUTH AFRICA

2. INTRODUCTION Small insurers’ view on the difficulties they
face in complying with regulatory
requirements in developing countries.
My presentation will deal with:
Importance of products
Providers of these products
Regulatory regime
Cost of compliance
Recommendation

3. IMPORTANCE OF PRODUCTS
Small insurer vs large insurer
Need for funeral, credit life and health policies
Important for sustainable economic growth

4. THE PROVIDERS OF THESE PRODUCTS
Mutual benefit societies
Funeral insurers
Illegal operators

5. REGULATORY REGIME Legislative Framework
Friendly societies (non-profitable)
Strict insurance legislation

6. COST OF COMPLIANCE Cost of capital Systems Suitably qualified staff
Audit and actuarial fees
Levies/taxes
Statutory returns
Reserving and investment requirements

7. RECOMMENDATIONS Not for total deregulated environment
A regulatory framework that is less stringent to comply with
Self-regulatory regime
Self-regulatory authority powers
Act swiftly
Penalties
Name and shame

8. RECOMMENDATIONS Cont. Reporting, entry and capital requirements
Limited benefits
Dispute resolution mechanism
Tax incentive
Consumer education