- Local policies are not required to be issued but are recommended for compulsory classes.
- Direct assured business (without a local intermediary) is permitted.
Trading rights in South Africa
Restrictions: Motor TPL. Workers' compensation / Medical and funeral expenses. Certain Personal lines (see Crystal for detail)
Doing multinational business in South Africa
Intermediaries in South Africa need to be registered under the FAIS Act.
For business originating in South Africa Lloyd’s require local brokers to be approved as Open Market Correspondents (OMCs) by the local Lloyd’s representative.
If a Lloyd's broker does not provide intermediary services or advice in South Africa they do not need to be registered under the FAIS Act.
Limitations are imposed by the Short-term Insurance Act and the Regulations on the commission which can be provided by a Lloyd’s underwriter / broker to an intermediary. (If the South African intermediary is the producing business, commission payable is 20% for non-motor business).
Local law and jurisdiction must be South Africa.
Local Brokers - Local Credit terms - local intermediaries have 15 days from end of the month in which the premium was received to instruct the local banks to pay the Lloyd’s broker.
Lloyd’s Brokers – Where no local intermediary is involved and placement is not 100% placed via Lloyd’s, exchange controls apply (MPI form requested by bank) Please see Crystal for details). If business is 100% placed at Lloyds the MPI form is not required. To support premium transfer requests to the bank it is suggested that the Lloyd's broker provides a letter to the policyholder confirming that the risk is placed 100% at Lloyd's.
Local claims payments are permitted. Loss adjusters do not need to be locally registered or licensed.
These country profiles and Crystal are provided for information purposes; they do not constitute solicitation of business and are not intended to be a substitute for appropriate professional advice.