Abstract:
Financial Condition Reporting (FCR), which is set to be implemented in 2008, promises some of the most significant changes to solvency regulation in the history of the short-term insurance industry in South Africa.The purpose of this study was to assess the perceived impact that this new regulation will have on the short-term insurance industry and to identify the main challenges for implementing FCR requirements.The Delphi technique was used to solicit expert opinion and consensus on the key issues facing the short-term insurance industry in the transition to FCR.The survey indicates that whilst there are several challenges in moving to a more rigorous regulatory environment, that the benefits of a principle based, internationally harmonised and risk sensitive approach to capital requirements, outweigh the efforts of implementing such a system.
