Short-Term Insurance Act, 1998 (Act No. 53 of 1998)Board NoticesNotice on Governance and Risk Management Framework for Insurers, 2014Part 2 : Governance and Risk Management Framework - General2. Governance framework |
| (1) | An insurer must adopt, implement and document an effective governance framework that provides for the prudent management and oversight of its insurance business and adequately protects the interests of its policyholders. |
| (2) | The governance framework must be proportionate to the nature, scale and complexity of the insurer's business and risks and must address and provide for, at least, the matters provided for in Parts 3 to 5. |
| (3) | The Authority at any time may— |
| (a) | require the board of directors or managing executives, or both, of an insurer to demonstrate that the governance framework requirements provided for in this Board Notice are being complied with; or |
| (b) | direct an insurer to secure an independent review of the governance framework by a person nominated by the Authority at the cost of the insurer; and |
| (c) | direct the board of directors or managing executives to strengthen and effect improvements to its governance framework or a part thereof. |