New regulations to impact insurance intermediaries in South Africa

The new regulations in South Africa suggest a decrease in the number of insurance intermediaries. The provisions applicable in 2020 notably include:

• A limitation of the costs for policyholders
• High upgrading costs imposed on intermediaries
• A ban on keeping insurance premiums for more than 45 days and on charging interest.

The use of digital technology is also threatening traditional distribution networks. Many insurers are moving towards all-digital distribution, thereby bypassing intermediaries. In fact, the digital means of insurance policies’ distribution is a priority for insurers.

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