On the 25th of April 2025 the Financial Sector Conduct Authority exempted Lloyd’s open market correspondents from section 8(2)(d) of the Short-term Insurance Act, 1998. The section requires an independent intermediary placing non-life insurance business offshore to get the approval of the FSCA which is done under the Offshore Insurance Placement process.
When amendments were introduced
In October 2024 the Constitutional Court, although dealing with a medical schemes claim, pertinently confirmed that where an insurer avoids a policy on the grounds of misrepresentation or non-disclosure whether under the common law or the Short-term Insurance Act, the insurer has to prove that the non-disclosure of a material information induced it to enter
A hailstorm physically damaged the aluminium cladding on the south and west sides of the insured building. The insurer was ordered to replace the cladding on all sides of the building because a matching cladding could not be found. It was held that the obligation to pay for “direct physical loss” to the “covered property”
New draft premium collection legislation
The National Treasury has published draft regulations for comment by 23 April 2018 regarding the collection of premiums by intermediaries (short-term and long-term premiums). The draft regulations require detailed premium collection authorisations by insurers to intermediaries. The proposed regulations also require a separate bank account for premiums received and require