Licences Introduction What is a licence? Lease/licence distinction Types of licence.
LICENCE CONVERSION PROCESS - Guardrisk · licence conversion process . 3rd party client workshop ....
Transcript of LICENCE CONVERSION PROCESS - Guardrisk · licence conversion process . 3rd party client workshop ....
LICENCE CONVERSION PROCESS
3RD PARTY CLIENT WORKSHOP
DATE: 28 NOVEMBER 2018
PRESENTER: MAXWELL SIBANDA (CRO)
INDEX
INTRODUCTION AND BACKGROUND
PROGRESSIVE IMPLEMENTATION
4 GUIDING PRINCIPLES OF PROCESS
ISSUING OF LICENCE CERTIFICATES
STATUS OF GUARDRISK CONVERSIONS
CONCLUSION AND WAY FORWARD
SLIDE NO: 2
7 STAGES OF CONVERSION PROCESS
INTRODUCTION & BACKGROUND
INTRODUCTION AND BACKGROUND
Conversions of registrations (LT or ST Ins Acts) to licences (Ins Act).
Comm. 2 sets out process to be followed by Prudential Authority (PA).
Applies to all insurers registered before 1 July 2018 (LT & ST Ins Acts).
Communication 2 of 2018 (issued under the Insurance Act 2017).
SLIDE NO: 4
PROGRESSIVE IMPLMENTATION
PROGRESSIVE IMPLEMENTATION PROCESS
SLIDE NO: 6
PHASE 1
01 JUL 18 – 01 JAN 19
Conversion of registrations o f d o r m a n t i n s u r e r s , i n su re rs th at wa nt to become microinsurers and insurers that are, or want to become cell captive insurers
PHASE 3
01 OCT 19 – 31 JUL 20
Conversion of registrations of insurers other than those referred to in Phases 1 and 2
PHASE 2
01 JAN 19– 01 OCT 19
Conversion of registrations of captive insurers, insurers only conducting reinsurance & insurers conducting only linked insurance business
The PA must within a period of two years after the effective date of the Act, convert the registration of all previously registered insurers to a licence in accordance with the Insurance Act.
4 GUIDING PRINCIPLES OF PROCESS
PROGRESSIVE IMPLEMENTATION PROCESS
SLIDE NO: 8
PRINCIPLE 1
CERTAINTY
PRINCIPLE 2
CONTINUITY
PRINCIPLE 3
STABILITY PRINCIPLE 4
IMPROVE, GROW & REGULARISE THE SECTOR
7 STAGES OF CONVERSION PROCESS
STAGES OF THE CONVERSION PROCESS
SLIDE NO: 10
STAGE 1
Submit draft conversion workbook
STAGE 2
Pre-conversion engagement
STAGE 3
Submission for conversion
STAGE 4
Consideration of submission for
conversion
STAGE 5.A
Pre-conversion engagement
STAGE 5.B
Independent expert view (if necessary)
STAGE 6
Issue of notification on license converting
previous registration PA intends to issue
STAGE 7
Issue of licence
ISSUING OF LICENCE CERTIFICATES
WHEN WILL INSURER RECEIVE LICENCE?
Due to parliamentary delays, certain requirements not in place by Jul 18.
No new licence can be finalised if conduct-related legislative framework is still not yet in place (conversion may be concluded - but licence wont be issued).
Reg framework is an integrated i.e. prudential and conduct framework.
SLIDE NO: 12
In order to implement Insurance Act & Prudential Standards, certain amendments to the subordinate conduct-related legislative framework (Regs & PPRs) made under the ST & LT Ins Acts needed to be made.
STATUS OF GUARDRISK CONVERSIONS
STATUS – GUARDRISK LICENCE CONVERSION
SLIDE NO: 14
STAGE 1
Submit draft conversion workbook
STAGE 2
Pre-conversion engagement
STAGE 3
Submission for conversion
STAGE 4
Consideration of submission for
conversion
STAGE 5.A
Pre-conversion engagement
STAGE 5.B
Independent expert view (if necessary)
STAGE 6
Issue of notification on license converting
previous registration PA intends to issue
STAGE 7
Issue of licence
CONCLUSION & WAY FORWARD
CLOSING COMMENTS & WAY FORWARD
Guardrisk submitted initial workbooks beginning Oct 2018.
Guardrisk awaiting engagement & next steps (from PA).
Engagements/agreement with the PA will dictate way forward.
Guardrisk process commenced end Aug/beginning Sep 2018.
SLIDE NO: 16
Thank you