Some of the Panel’s broad key focus areas, which led to their recommendations, are as follows:

• Intermediary remuneration
• Regulation revision
• Market conduct
• Which regulator should administer CCI?
• The broader key focus areas

While primarily in agreement with the Panel’s recommendations, SAIA’s commentary took cognisance of the Insurance Laws Amendment Act. In this vein, SAIA noted the urgency of the need for regulatory review, which has enabled some of the structures that exist within the CCI market.

One of the Commission’s key suggestions is that the regulation of market conduct in relation to CCI should be in the domain of the National Credit Regulator (NCR). Furthermore the Commission is of the view that insofar as intermediary structures are concerned, there is potential conflict of interest arising in some of the business models used in this market. It is also the view of the Commission that CCI consumer education should be a joint effort of SAIA and ASISA.

SAIA’s response to the recommendation in so far as the regulator of CCI is concerned, is that the NCR domain is credit and not insurance. Furthermore, SAIA believes that despite potential for conflict of interest, it is envisaged that the process of drafting the Insurance Laws Amendment Act (ILAA) regulations (more specifically, the re-classification of intermediary structures and the disclosure provisions), will adequately address how the conflict ought to be managed. SAIA is wholly in agreement with the Commission’s recommendations of the collaboration of efforts insofar as consumer education is concerned.

It is envisaged that the strengthening of legislation within the cell captive environment will be strengthened during the process of engagement with the regulator.

SAIA and ASISA are in the process of engagement with the Financial Services Board on this matter.