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Following the acquisition of Zurich South Africa and Botswana by the Canadian-based Fairfax Financial Holdings last year, the businesses rebranded to Bryte Insurance.
South Africa’s debt to GDP ratio has been growing for some time because of overspending. Consumers have been running up debt and plundering into retirement savings.
With the plethora of pro-consumer legislation being released for comment at the moment, one of the big debates in the short term industry boils down to this: with all the effort insurers have to go through to protect consumers, deal with consumer’s claims as fairly as possible and now even take consumer’s interests into account when determining premiums, is it possible for insurers to still make profits?
The recent firing of Finance Minister Pravin Gordhan and Deputy Minister Mcebisi Jonas sounded the alarm bells within Standard & Poor’s (S&P) sufficiently enough for the rating agency to hold an extraordinary meeting where it downgraded South Africa to sub-investment grade (junk status) on the evening of 3 April.
The strongest deterrent against FSP compliance missteps is or should be: