The effect of the universal "treating customers fairly" principles and the new policyholder protection rules on insurance claims in South Africa

Abstract

Treating Customers Fairly (TCF) has finally been formally promulgated into the Insurance sector of South Africa via the 2017 Policyholder Protection Rules (2017 PPR's). It has been a long-standing initiative by the market conduct regulator of the financial sector, that instils confidence in consumers and provides proper protection of customers by incorporating fairness into the culture of insurers businesses.

The discussion in this dissertation considers what the universal TCF principles are and deals with the incorporation thereof into the 2017 PPR's as well as the broader legal framework of the financial sector but specifically focused on the insurance sector. By considering the TCF principles, the 2017 PPR's and the wider legal framework, the effects of the universal TCF principles and the 2017 PPR's are evaluated and discussed in the context of insurance claims handling in South Africa.

The effects of the universal TCF principles and the 2017 PPR's on the insurance claims handling in South Africa specifically focusses on the administration and insurance contract at the claims stage. The discussion focuses on the concept of fairness in respect of insurance administration and the insurance contract. The law is stated as at October 2021.