Who regulates insurance brokers in South Africa?
Who regulates insurance brokers in South Africa?
Financial Sector Control Authority
All insurance brokers in South Africa are regulated by the Financial Sector Control Authority and are required to be licensed by the FSB.
What is non indemnity insurance?
If it is non-indemnity insurance, the insurer undertakes to pay a specified sum of money (or to make periodic payments of specified amounts of money) to the insured on the happening of an event, regardless of the extent of the actual monetary loss which was incurred.
How do I become an insurance broker in South Africa?
So, here are important steps and requirements to becoming an Insurance broker.
- HAVE AN ENTRY LEVEL QUALIFICATION.
- EARN A BACHELOR’S DEGREE.
- ADD AN INTERNSHIP TO YOUR INSURANCE BROKER TRAINING.
- OBTAIN AN INSURANCE BROKER LICENSE.
- FIND A JOB.
- OBTAIN INSURANCE BROKER CERTIFICATION.
How do insurance brokers make money in South Africa?
In South Africa, insurance brokers receive commission from insurance providers, and sometimes they also charge their clients fees. The commission an insurance broker receives from insurance companies is calculated based on what the law in South Africa requires and is taken from the monthly premium you pay.
What is difference between indemnity and non-indemnity?
Indemnity is paid as a lump sum at policy commencement and is on the basis that the policy will carry on for a specific term. Non-indemnity commission is paid by the provider in monthly installments over a set period of time. The insurer will detail how the commission will be paid within the product illustration.
Is life insurance a non-indemnity insurance?
The most common forms of non-indemnity insurance on the other hand are life insurance and personal accident insurance.
What is a cession in insurance?
The other cession that exists is an outright or absolute cession, where you permanently transfer your whole policy to your creditor. The cessionary will become the owner of the policy and all your rights to this policy will then come to an end. This means you won’t be able to cancel the cession.
What are the benefits of policy cessions?
Nowadays, most creditors/lenders demand some form of security or collateral so they can recover their money if the borrower does not pay in case of an insured event taking place, i.e. death or disability. Another benefit is that policy cessions give you considerable flexibility in your finances.
What is the Insurance Information Institute?
We are the Insurance Information Institute. Since 1960, we have been the trusted source of unique, data-driven insights on insurance to inform and empower consumers. We serve consumers, media and professionals seeking insurance information.
What are the different types of policy cessions?
The main types of financial institutions involved in policy cessions include banks, investment houses and of course the insurers themselves. The types of policies that can be ceded include: savings, endowment/sinking funds, and life cover.
