SARB varies Swiss Re's non-life insurance license

Fundi Tshazibana, Chief Executive Officer of the Prudential Authority, with the concurrence of the Financial Sector Conduct Authority, has formally announced a variation to the non-life insurance licensing conditions for Swiss Re Corporate Solutions Africa Limited (SRCSA).

This regulatory update, issued under section 26 of the Insurance Act, 2017, read with section 126(1)(a) of the Financial Sector Regulation Act, 2017, specifically expands the classes of non-life insurance business SRCSA is authorised to conduct.

The key change is the inclusion of 'Rail' as an approved sub-class of business.

This variation came into effect on March 31, 2026, and applies to SRCSA as a non-life insurer.

The notice clarifies that SRCSA is only permitted to conduct non-life insurance business within the approved classes and sub-classes detailed in the accompanying Annexures A and B, ensuring strict adherence to the updated regulatory framework.

This ensures that all operations align with the specific mandates and permissions granted by the Prudential Authority, reinforcing the structured oversight of the insurance sector.

The varied licensing conditions specify several operational parameters for SRCSA.

The approved classes and sub-classes, as outlined in Annexure A, may be underwritten for business both within South Africa and internationally.

A crucial limitation is placed on reinsurance inwards business: any such business originating from countries not on the Prudential Authority's list of equivalent jurisdictions is capped at 30 percent of total gross written premiums, calculated annually for business conducted outside South Africa. This measure aims to mitigate risks associated with less regulated markets.

The notice explicitly prohibits SRCSA from conducting any business through a cell structure, ensuring a clear and consolidated operational model.

These conditions underscore the PA's commitment to maintaining robust regulatory standards.