An update on microinsurance in South Africa.

In 2011, a policy document entrenched and refined a proposed microinsurance regulatory framework for South Africa that was envisaged to be incorporated into a forthcoming Microinsurance Act and subordinate legislation. However, in 2013 the decision was made to no longer pursue standalone microinsurance legislation, but rather to incorporate microinsurance provisions under the new financial sector regulatory structure to be implemented in South Africa under the “Twin Peaks” framework, with a number of interim measures to start giving effect to microinsurance from 2014 onwards.

In 2014, with implementation yet to take place, this report questioned whether the proposed elements of the regulatory framework were still relevant given changes in the market and regulatory environment. The findings revealed that the trends witnessed in terms of insurance usage, supply-side movements and broader regulatory developments together entrench, rather than undermine, the continued relevance of the microinsurance framework.