The long-awaited Insurance Bill was among a number of pieces of legislation passed by the National Council of Provinces at its final scheduled plenary sitting of 2017.
The good news for lower-income South Africans is that the bill when passed will bring access to micro-insurance closer.
According to a statement released by parliament ‘this piece of legislation was intended to encourage a fair, safe and stable insurance market by establishing a legal framework that enhances financial soundness through higher prudential standards, group supervision and stronger re-insurance arrangements.
Many operators believe that the passing of the bill answers the call by National Treasury to address access to affordable insurance and will bring many more South Africans into the financial sector.
This includes citizens in the lower-income bands whose only exposure to insurance to date has been through funeral policies.