On 13th March 2015, the Insurance Regulatory and Development Authority (IRDA) India introduced the revised Microinsurance Regulation (2015) which supersedes the existing regulations introduced in 2005. Withdrawal of all existing microinsurance products which do not meet the stipulations of the new regulation must be done by January 2016.
The new regulation makes a number of important amendments including to the guidance on product development, adjusting the risk coverage levels, permitting more entities to distribute microinsurance products and the training of microinsurance agents and their specified personnel. It also introduces a change in the existing compliance norms for insurance companies which had been established under the Rural and Social Sector Obligations (2002). Of particular note is the introduction of a new product category called micro variable life, a hybrid product category which offers the customer the benefit of systematic contribution with term insurance coverage.
The South African National Treasury and Financial Services Board release for consultation the draft Insurance Laws Bill 2015
In April 2015 the South African National Treasury (NT) and the Financial Services Board (FSB) published a draft of the Insurance Laws Bill 2015 (“the Bill”) for public comment. The draft Bill gives effect to the National Treasury’s (NT) Microinsurance Policy Document released in July 2011. It supports the development of an inclusive insurance sector through facilitating the provision of affordable insurance, while also introducing proportionate regulation and supervision of microinsurance both in terms of operations as well as in terms of providers.
The Bill is envisaged to replace the sections related to prudential supervision of the Long-term Insurance Act and the Short-term Insurance Acts of 1998 and is expected to become effective on 1 January 2016.