A legal analysis of the regulation of the Lloyd's of London’s cover holders in the South African insurance industry

Abstract

As seen between the Short-Terms Insurance Act 53 of 1998, Insurance Act 18 of 2017 and Financial Advisory and Intermediary Services Act 37 of 2002, the South African insurance industry has been substantively regulated. The Lloyd's of London syndicate is one of the world's most prominent organisations within the insurance industry. This syndicate assists businesses, enterprises and individuals with the underwriting of risks. The above Acts throughout the years have implemented provisions to more strictly regulate role players within the South African insurance industry. But the concern is given to role players who form part of the South African insurance sphere, but originate from an international UK based company. This research focuses on the Lloyd's of London coverholder, as this role player concludes agreements on behalf of the insurer, or underwriters within South Africa. There is uncertainty on how the role player is regulated, and that the mere mention of this role player, can form different conclusions. This research aims to evaluate the Lloyd's of London coverholder within the South African insurance industry. Through literature study and evaluation, this research will show how this role player falls within the transaction process, and how it should be regulated. The Lloyd's of London coverholder is evaluated against other South African insurance role players. To determine all the roles and functions of the role players, this paper then aims to determine which role player is similar and if, the Lloyd's of London coverholder, can be regulated under the same provisions.