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We’ve reached the sixth week, and the hunt to find the ultimate representative of the insurance industry continues.
The participants have undergone a demanding journey that has subjected them to the ultimate professional examination. The contestants who remain have demonstrated resilience, confidence, and outstanding expertise in insurance. Nonetheless, when the credits roll, only three contestants will advance to the grand finale.
The Financial Sector Conduct Authority (FSCA) task has a reputation for being ruthless and this year is no different! In episode six, sponsored by the FSCA, the contestants have two choices: to go big… or go home, all while impressing the judges – head judge, Simon Colman, co-judge Nox Dlamini, and sponsor judge Makgompi Raphasha, Departmental Head – Insurers Supervision Department at the FSCA.
Outstanding payments to annuitants
Insurer A entered into binder and intermediary agreements with BSP in 2022, granting BSP authority to manage Living Annuity Policies.
Following Insurer A’s termination of these agreements on 7 September 2023, BSP initiated legal proceedings, alleging misappropriation of premiums. Several annuitants are affected as Insurer A ceased monthly payments.
The FSCA is stepping in to ensure swift resolution but faces challenges in establishing the whereabouts of premiums and holding both parties accountable. The FSCA’s preliminary assessment points to breaches by Insurer A under Section 49A(5) of the Long-term Insurance Act and Rule 1.4(f) of the Policyholder Protection Rules (PPRs). However, the complexity of the situation necessitates strategic action to safeguard the affected annuitants’ interests.
Taking affirmative action
Contestants in The Insurance Apprentice are tasked with advising the FSCA on effective steps to compel Insurer A to fulfil its obligations. Additionally, they must assess BSP’s conduct and recommend appropriate regulatory measures.
As the FSCA navigates this delicate situation, the imperative remains clear: ensuring timely payments to affected annuitants while holding accountable those responsible for this regulatory breach.
Did contestants deliver optimal solutions to this pressing challenge? Stay tuned for insights into their recommendations and the FSCA’s decisive actions.
Watch it here
We would like to thank the FSCA for sponsoring episode six of The Insurance Apprentice 2024.