Government has moved to enhance accountability and transparency in the insurance and pensions sector through the amendment of the Insurance and Pensions Commission Act, in a Bill gazetted last week.
The proposed Insurance and Pensions Commission Amendment Bill will introduce a new section, Section 3A providing for the objects of the Commission.
"The objects of the Commission shall be to--(a) regulate, supervise and monitor the insurance and pensions sector; (b) promote the maintenance of a fair, safe and stable insurance and pensions sector for the benefit and protection of policy owners and pension and provident fund members; (c) ensure that the insurance and pensions sector adheres to principles of accountability and transparency; and (d) promote and encourage the development of the insurance and pensions sectors," reads part of the Bill.
The Bill also amends Section 4 of the principal Act on functions and powers of the Commission by addition of a provision that requires the Commission to, "register insurers, mutual insurance societies, insurance brokers, medical aid societies and pension and provident funds to ensure that they maintain set standards and ensure compliance with the Insurance Act and the Pensions and Provident Funds Act as the case may be."
The Commission will also be required to monitor, regulate and supervise activities of insurers and their associates, mutual insurance societies and their associates, insurance brokers and their associates, medical aid societies and their associates, fund administrators and their associates, pension and provident funds to ensure that they maintain set standards and ensure compliance with the Insurance Act and the Pensions and Provident Funds Act.
The Commission will also be required to approve for the purposes of continuing or commencing operations in the insurance and pensions sector, actuaries, asset managers, credit rating agencies and other service providers; and to promote the maintenance of a fair, safe and stable insurance and pensions sector for the benefit and protection of policy owners and pension fund members; and to research and recommend on the international best practices in the insurance and pensions sector.
It will also be empowered to conduct investigations into any particular registered person or class of registered persons, where the Commission considers such an investigation necessary for the purpose of preventing, investigating or detecting a contravention of the Act or any other law governing the insurance and pensions sector.
