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Insurance Act, 2017 (Act No. 18 of 2017)

Chapter 2 : Conducting Insurance Business and Insurance Group Business

Part 4 : Insurance groups

10. Designation of insurance group and licensing of controlling company

 

(1)
(a) The Prudential Authority may, for the purpose of facilitating the prudential supervision of insurers, designate as an insurance group—
(i) an insurer;
(ii) any juristic person that is part of the group of companies of which the insurer is a part; and
(iii) any associate, or related or inter-related person of any juristic person that is part of the group of companies referred to in subparagraph (ii).
(b) An insurance group designated in terms of paragraph (a) need not include all the juristic persons, associates, or related and inter-related persons referred to in paragraph (a).

 

(2) The Prudential Authority must as part of designating an insurance group also designate the holding company or juristic person that must apply for a licence as a controlling company of that insurance group under Chapter 4.

 

(3) The holding company of, or another juristic person that controls, an insurance group designated under subsection (1) and which is located in the Republic must, within 30 days of the designation, apply to be licensed as a controlling company of that insurance group under Chapter 4.

 

(4) The Prudential Authority must keep designations in terms of subsection (1) under review, including if the Prudential Authority becomes aware of a change in the risk profile of the designated insurance group.

 

(5) The Prudential Authority may amend or revoke a designation in terms of subsection (1) if the Prudential Authority becomes aware of a change in the risk profile of any juristic person that is part of the designated insurance group.

 

(6) The Prudential Authority must publish a notice on the official website of each designation and each amendment and revocation of a designation under subsection (1), (2) or (5).