As South Africa’s financial sector prepares for a critical period of regulatory change, the Prudential Authority (PA) and the Financial Sector Conduct Authority (FSCA) have outlined their plans for 2025 and beyond. Both regulators are encouraging insurers to strengthen governance, adapt conduct frameworks, and prepare for increased oversight, which will significantly impact the non-life insurance industry.

The Prudential Authority (PA) has outlined its priorities for the next five years, focusing on several areas that directly impact the non-life insurance sector, which include:

• Stricter oversight of prudential soundness, governance, and risk management,
• Regulatory updates affecting micro-insurers and cell-captive business models and;
• Closer supervision of insurance groups and conglomerates, applying a proportional approach.

Efforts are in progress to address implementation challenges related to IFRS 17 and to promote greater consistency in reporting. Simultaneously, the Authority will intensify its focus on emerging risks, with particular emphasis on climate-related exposures, market conduct, and systemic vulnerabilities. Click here for the full strategy.

Similarly, the Financial Sector Conduct Authority (FSCA) has also published its regulatory strategy for 2025–2028, outlining the following:

• Emphasise conduct priorities that require insurers to update frameworks and prepare for increased oversight,
• Strengthen its supervision of fair treatment, product governance, and claims practices and;
• advancing the transition to the new Conduct of Financial Institutions (COFI) framework.

Conduct reporting will continue to integrate with the OMNI-CBR and IRS platforms, and product oversight will be scrutinised more closely, especially regarding value-for-money, exclusions, renewals, and overall product design. Distribution and intermediary practices, including remuneration, binders, and outsourcing, will also come under closer review. The FSCA has further underlined the importance of resilience against emerging risks such as climate change, cyber threats, and catastrophe exposures, while ensuring greater regulatory alignment with the PA to minimise duplication. Click here for the full strategy.