Section 50 Transfer of Insurance Business FAQ’s

African Rainbow Life is becoming Safrican

  • Who is African Rainbow Life?

    African Rainbow Life Insurance Limited (ARL), is the current underwriter of your policy.

    ARL (Company Registration No. 2018/329171/06) is a company duly established in accordance with the company laws of South Africa, a licenced insurer and Financial Services Provider.

  • Who is Safrican?

    Safrican Insurance Company Limited (Safrican) will be the new underwriter of your policy when the transfer is approved by the Prudential Authority.

    Safrican (Company Registration No. 1935/007463/06 is a company duly established in accordance with the company laws of South Africa), a licenced insurer and Financial Services Provider.

    Safrican is a respected life insurer with a footprint in South Africa and a subsidiary in Swaziland.

    Safrican has over 2 million principle lives covered and more than 7 million lives assured. Safrican began as a burial society in 1932 in Sophiatown. It was founded as an answer to the community’s need for a dignified and lasting tribute for their departed loved ones, at very affordable rates, and today is one of the leading funeral underwriters in South Africa.

  • Why will the insurer of my policy change?

    African Rainbow Life has joined forces with one of our sister companies, Safrican. Safrican, like ARL, is 100% owned by Sanlam. The merger of these two entities aligns to our purpose of living the legacy.

    • The businesses are complementary in nature: ARL focuses on individual retail policies, and Safrican has over 80 years’ experience in running Group’s business.
    • Public benefit: The merged entity will be best placed to meet the needs of both existing and new customers.
    • Leverage growth prospects: The combination of our two businesses will allow us to grow sustainably into the future and reach even more South Africans.

  • Which policies are affected by the transfer?

    All long-term insurance policies underwritten by ARL will be transferred to Safrican.

  • Do I have to give consent to the transfer of my policy or cover?

    • No, consent is not required for a transfer in terms of section 50 of the Insurance Act 18 of 2017.
    • As consent is not required, a detailed regulatory process is set out in the Insurance Act, associated Governance and Operational Standards (GOI5), and as per the requirements of the Prudential Authority.
    • One of these requirements is that the transfer must be approved by the Prudential Authority.

  • What will happen when the transfer is approved?

    • All the benefits of your policy will remain secure and unchanged, just as they were with ARL.
    • Your premium and policy terms & conditions will not be affected.
    • There will be no additional charges or costs.
    • The only change will be that after the approval of the Transfer by the Prudential Authority, the policies will be underwritten by Safrican and no longer by ARL.

  • How will the transfer take place?

    • The transfer of the business of an insurance company is subject to a detailed regulatory process that is compliant with the provisions of the Insurance Act and the requirements of the Prudential Authority.
    • Please refer to the Transfer Process below for more details of events and timelines.

  • The transfer process

    The process of the Transfer can be illustrated as follows:

    ITEM ACTION DATE
    1. Regulatory reference date for the transfer 30 June 2021
    2. Submit application to the PA together with the communication plan and all supporting documents 4 March 2022
    3. Transfer Application: PA to review the application and all documents and provide comments but not limited to the communication plan, communication notices, the draft timeline, etc. (15 days) 4 March – 14 September 2022
    4. Transfer Application: Comments referred to in terms of point 3 above to be attended to by ARL and Safrican (within 5 business days of PA request) 4 March – 14 September 2022
    5. The PA to consider comments and applications, submit to Financial Sector Conduct Authority (FSCA) for input and to provide in-principle approval (within 32 days of transfer application date for point 4) 4 March – 14 September 2022
    6. ARL and Safrican to commence the implementation of the communications plan (within 3 days of point 5) in relation to the transfer application 3 October 2022
    7. Implementation of Communication Plan:

    1)    Dispatch of SMSs and emails;

    2)    Newspaper advertisements are placed.

    3)    Radio live read

    		  

    14 – 20 October 2022

    14 – 20 October 2022

    14 – 20 October 2022
    8. Documents are made available on the websites of ARL and Safrican (from 10 October 2022) and 10 days from the newspaper for inspection by interested persons. 10 October – 3 November 2022
    9. Policyholders who have an interest in the matter may submit to the PA such representations concerning the proposed transfer application as are relevant to his or her interests (16 days) 10 October – 11 November 2022
    10. PA to deal with any possible complaints and enquiries received (for the duration of the communication plan plus 2 working days) 10 October – 15 November 2022
    11. ARL and Safrican to compile a report on the implementation of the policyholder communication process and furnish such report to the internal auditors (within 2 days of the last date of the communication plan period) 14 November 2022
    12. Internal auditors to review the implementation of the policyholder communication plan and the report thereon (within 2 business days of point 11) 15 – 17 November 2022
    13. Internal auditor report provided to PA and PA to review communication process 21 November 2022
    14. PA and FSCA to review (5 business days from point 13) 21 – 25 November 2022
    15. Receive PA’s written approval of the section 50 application. 28 – 30 November 2022

  • What if I do not want Safrican to underwrite any cover relating to me?

    You are allowed to make representations to the Prudential Authority, to ARL, or to Safrican if you have any concerns about the Proposed Transfer. These representations must reach the Prudential Authority, ARL, or Safrican by no later than 11 November 2022.The contact details are set out below.

    Please note that the Long-Term Insurance Ombudsman and the Ombud for Financial Services Providers will not be able to assist you in this matter as the transfer is not within their jurisdiction.

  • Where can I obtain more information about the proposed transfer?

    • Copies of the documents mentioned below will be available for inspection for a period of 15 (fifteen) business days from 10 October 2022 until 11 November 2022, between 09h00 and 17h00, at the reception areas of the head offices of:
      • ARL
        • 1 Sturdee Avenue, Rosebank, Johannesburg, 2193
      • Safrican
        • 21 – 9th Street, Houghton Estate, Johannesburg, 2193
    • The information will also be available during the above period on the websites of:
      • ARL:               www.africanrainbowlife.co.za
      • Safrican:       www.safrican.co.za

     

    • The documents available for inspection will include:
      • The transfer agreement concluded between ARL and Safrican;
      • Annual Financial Statements for the year ended 2021 for African Rainbow Life Limited;
      • Annual Financial Statements for the year ended 2021 for Safrican Insurance Company Limited;
      • The confirmations of the statutory actuary of ARL and the auditors of ARL and Safrican;
      • All communication notices;
      • A copy of the formal notification to the Prudential Authority; and
      • Any other documentation as prescribed by the Prudential Authority.

  • Who can I contact if I have enquiries regarding the proposed transfer?

    Telephonically:

     

    Email:

     

    Alternatively, please direct your enquiries to the Prudential Authority via email at SARB-PA@resbank.co.za; and/or the Financial Sector Conduct Authority via email at INS.Transfer@fsca.co.za.

Views: 668

Back To Top