KEEP UP TO DATE WITH ALL THE IMPORTANT COVID-19 INFORMATIONCOVID-19 RESOURCE PORTAL
FANews
FANews
RELATED CATEGORIES

Update on Contingent Business Interruption Insurance cover

17 September 2020 Financial Sector Conduct Authority (FSCA)

Following ongoing discussions with the non-life insurance industry, the Financial Sector Conduct Authority (FSCA) would like to provide an update regarding the process of obtaining legal certainty on Contingent Business Interruption (CBI) Cover.

As indicated in previous communications, the FSCA has been engaging with the non-life insurance industry on the most efficient way to approach the courts in order to obtain legal certainty on CBI Cover. After engaging with their legal teams, the majority of non-life insurers have advised the FSCA that due to many legal complexities they are now of the view that the cases that are currently before the South African courts and the one by the Financial Conduct Authority in the United Kingdom will provide the required legal certainty on CBI policy wordings for the non-life insurance industry.

Considering the view of these insurers, the FSCA will await the outcome of all these cases to see if the cases indeed provide the required legal certainty on all elements of the CBI policy wordings.

Should there be any elements of the CBI policy wordings that remain unclear after finalisation of the cases referred to above and/or the cases do not provide certainty for the non-life insurance industry as hoped, the FSCA will engage with the non-life insurance industry and consult its legal representatives again in an effort to have such elements or uncertainty clarified efficiently.

Finally, the FSCA is aware of the FCA judgment that was handed down yesterday and it is studying it. For more information about this matter, please contact Mr Makgompi Raphasha at [email protected]

Quick Polls

QUESTION

The intention with lockdown was to delay or flatten the Covid-19 infection curve and give both the private and public healthcare sectors time to prepare for the inevitable onslaught. Did the strategy work?

ANSWER

No, the true numbers are not reflected. Almost a quarter of South Africans may already have been infected with Covid-19
It’s too soon to tell. We will likely get a second wave with stringent lockdown regulations in place again
Yes, South Africa bought enough time to make a significant difference. We saved lives and have passed our peak. The worst is over
fanews magazine
FAnews August 2020 Get the latest issue of FAnews

This month's headlines

Ethical behaviour - are you toeing the line?
Latest business interruption developments raise more questions than answers
Brokers remember: You are accountable...
A sustainable pension - How to manage living annuities in uncertain times
Claim stats… life can change in a heartbeat
Are South Africa’s income protection benefit providers ready for COVID-19?
Subscribe now