Christine Rodrigues

In respect of the implementation and compliance with the final tranche of rules that must be complied with by 15 December 2019, remember that the PPRs apply to natural persons and juristic persons whose asset value or annual turnover is less than ZAR2 million.

Below are some practical tips for implementation and compliance with the fifth and final tranche of rules:

Short-term and long-term insurers:

Rule 13

(Data management)

Insurers need to ensure that they update their processes and policies for collecting data from third parties. Where there are binders in place, insurers have already in all likelihood implemented such processes and policies. Where there is no policy in place, insurers must make sure that they have a data management framework in place.
Rule 19 (short-term) and Rule 20 (long-term)

(Termination of policies)

Insurers will need to make sure that policies comply with the requirements of when they can terminate policies other than for non-payment of premium; material changes to the risks covered or when law requires immediate termination. In addition, insurers must ensure that they are able to communicate with the policyholders that the policy will be terminated. Insurers must ensure that if they terminate the cover on the basis of circumstances other than those stated above, they will still be liable until such time that they receive proof that the policyholder has been made aware of the intended termination of the policy or they have proof that the policyholder has entered into another policy. Therefore, insurers must ensure the following:

  1. Underwriting criteria is adjusted to take the above into account.
  2. Claims settling processes are adjusted to allow for the above.
  3. Communication processes are adjusted to allow for communication with an affected policyholder.


This completes our series on the new policyholder protection rules. We will keep you updated if there are any further development.