Insurtech most definitely makes insurance an easy accessible service and the more accessible it is, the happier the clients.
Insurance services are regulated by the Financial Advisory and Intermediary Services Act 37/2002 (FAIS) and a license is granted in terms of this Act to be an Authorised Financial Services Provider (FSP). The FAIS Act is regulated by the Financial Services Board. Depending on the insurance, if the company is the products provider it must also be registered under the Short term Insurance Act 53/1998 or the Long Term Insurance Act 52 of 1998.
Online Insurance Services further fall under the Electronic Communications and Transaction Act 25/2002 and is only regulated, no license is required.
The market is very big and still developing and improving their services. The competition is high and therefore their services need to be competitive in all aspects which include online services. Discovery is a popular provider in this area.
The CoFI Act will come into operation and more stringent requirements will be applied. Insurtechs must stay updated. The FIC Amendment Bill will certainly have an effect on insurers too.
Durban, South Africa