A report by the Panel of Enquiry on CONSUMER CREDIT INSURANCE IN SOUTH AFRICA CONSUMER CREDIT INSURANCE IN SOUTH AFRICA A report commissioned and sponsored by the Life Offices’ Association of South Africa and the South African Insurance Association LOA Postal address: P O Box 5023 Cape Town 8000 Telephone: 021 421 2586 Fax: 021 421 2599 Email:
[email protected] Website: www.loa.co.za SAIA Postal Address: P O Box 30619, Braamfontein, 2107 Telephone 011 726 5381 Fax 011 726 5351 Email:
[email protected] Website: www.saia.co.za Members of the Panel Judge Peet Nienaber Chairperson of the Panel of Enquiry, former Ombudsman for Long-term Insurance Moses Moeletsi Chairperson of the Board of the Ombudsman for Short-term Insurance, member of the Council of the Ombudsman for Long-term Insurance Desmond Smith Director of companies, currently chairperson of the Life Offices‘ Association Ronnie Napier Senior partner, Webber Wentzel, former chairperson, South African Insurance Association Louis Wessels Senior head of legal and policy affairs of, and currently consultant to the FSB 21 April 2008 ISBN 978-0-620-40952-0 TABLE OF CONTENTS PAGE NO. CHAPTER 1: INTRODUCTION 1 CHAPTER 2: ISSUES AND TOPICS 5 CHAPTER 3: THE CONCEPT OF CONSUMER CREDIT INSURANCE 7 1. WHAT IS CONSUMER CREDIT INSURANCE? 7 2. TYPICAL CONSUMER CREDIT INSURANCE PRODUCTS 17 3. CONSUMER CREDIT INSURANCE IS DIFFERENT 21 CHAPTER 4: THE CONSUMER CREDIT INSURANCE INDUSTRY IN SOUTH AFRICA 23 CHAPTER 5: CONSUMER CREDIT INSURANCE REGULATION AND MISCONDUCT IN THREE OTHER JURISDICTIONS 29 1. INTRODUCTION 29 2. THE UNITED KINGDOM 29 3.