Funeral insurance regulations review
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Individual Reform: Funeral insurance regulations review 2026 - 2027

Comprehensive review and overhaul of the regulatory framework for the distribution of funeral insurance

No data available for the deliverable: Comprehensive review and overhaul of the regulatory framework for the distribution of funeral insurance

No data available for the deliverable: Comprehensive review and overhaul of the regulatory framework for the distribution of funeral insurance

No data available for the deliverable: Comprehensive review and overhaul of the regulatory framework for the distribution of funeral insurance

No data available for the deliverable: Comprehensive review and overhaul of the regulatory framework for the distribution of funeral insurance

No data available for the deliverable: Comprehensive review and overhaul of the regulatory framework for the distribution of funeral insurance

Summary

Funeral insurance is the most widely held insurance product in SA, making this reform socially and economically important. The review is a comprehensive overhaul, with stakeholder workshops, regulatory gap analysis and a draft framework focused on compliance and consumer empowerment. The focus is on protecting vulnerable consumers, supporting small businesses and ensuring fair market practices.

Canvas not supported.

Is it working?

The reform is progressing, with strong engagement and a clear need identified, but practical implementation and enforcement are still to come.

Actions

The review is active, with high sector engagement but no new regulations yet. The process is inclusive, but challenges remain in formalising the sector and addressing unlicensed providers.

Are there plans?

Joint Communication 7 of 2024 outlines the process, with workshops and regulatory gap analysis continuing in 2025. A broader rollout is planned to align South Africa with global sustainability standards.

Is it on the agenda?

The FSCA, Prudential Authority and Natioal Treasury have made this a top priority, launching an inter-regulatory project in late 2024.

Goals

To overhaul funeral insurance regulation, protecting vulnerable consumers, supporting small businesses and ensuring fair market practices.

References

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) Prudential Authority South African Reserve Bank (SARB)

Summary

Funeral insurance is the most widely held insurance product in SA, making this reform socially and economically important. The review is a comprehensive overhaul, with stakeholder workshops, regulatory gap analysis and a draft framework focused on compliance and consumer empowerment. The focus is on protecting vulnerable consumers, supporting small businesses and ensuring fair market practices. The FSCA and Prudential Authority launched overhaul and stakeholder consultations for new funeral insurance conduct and distribution rules with market engagement. Draft rules have been published, engagement workshops completed and stakeholder feedback finalisation set for early 2026.

Canvas not supported.

Is it working?

The reform is progressing, with strong engagement and a clear need identified, but practical implementation and enforcement are still to come.

Actions

The overhaul has been implemented and the market conduct review is active, with high sector engagement but no new regulations yet. The process is inclusive, but challenges remain in formalising the sector and addressing unlicensed providers. Improvements are being noted and market feedback is positive but some unresolved legacy issues are under examination.

Are there plans?

Joint Communication 7 of 2024 outlines the process, with workshops and regulatory gap analysis continuing in 2025. A broader rollout is planned to align South Africa with global sustainability standards. There are tick-box compliance reviews, audit enforcements and expert advisory groups have been created.

Is it on the agenda?

The FSCA, Prudential Authority and National Treasury have made this a priority, launching an inter-regulatory project in late 2024. FSCA/PA reporting to Cabinet, sector feedback rounds scheduled, ongoing supervisor oversight.

Goals

To overhaul funeral insurance regulation to protect vulnerable consumers, support small businesses and ensure fair market practices for improved consumer protection, product integrity and supervision of the sector.

References

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) Prudential Authority South African Reserve Bank (SARB)

Summary

Funeral insurance is the most widely held insurance product in SA, making this reform socially and economically important. The focus of this reform is on protecting vulnerable consumers, supporting small businesses and ensuring fair market practices.
FSCA and the Prudential Authority have launched a comprehensive overhaul of conduct and prudential rules for funeral insurance products and distribution, following evidence of mis‑selling, poor value products and weak oversight in parts of the market. Draft regulatory instruments have been issued and extensive stakeholder consultations and workshops have been held, with finalisation of feedback scheduled for early 2026. Budget Review 2026 situates this work within the broader conduct‑of‑business and financial‑inclusion agenda, emphasising fair treatment and appropriate products in retail insurance markets.

Canvas not supported.

Is it working?

Early feedback from stakeholders suggests improvements in clarity and a stronger focus on customer outcomes, although full impact will be visible only once rules are finalised and supervisory follow‑through – including visible enforcement against poor practice – is evident. Effective implementation will be critical to protect vulnerable policyholders and rebuild trust in the sector.

Actions

Draft rules have been published, stakeholder engagement workshops and industry consultations have been completed and the FSCA/PA are addressing identified legacy issues such as unpaid or disputed claims and non‑compliant distribution arrangements as part of ongoing supervision.

Are there plans?

Regulators plan to finalise the rules after analysing consultation feedback, implement them in phases with appropriate transition periods and conduct follow‑up market‑conduct reviews and enforcement once the new framework is in force.

Is it on the agenda?

Funeral‑insurance reform appears in FSCA and PA regulatory plans and is reported to Cabinet as part of the consumer‑protection and market‑conduct workstream referenced in Budget Review 2026’s financial‑sector update.

Goals

Consumer protection, product integrity, supervision of sector. To overhaul funeral insurance regulation to protect vulnerable consumers, support small businesses and ensure fair market practices for improved consumer protection, product integrity and supervision of the sector.

References

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) Prudential Authority South African Reserve Bank (SARB)

Summary

Funeral insurance is the most widely held insurance product in SA, making this reform socially and economically important. The focus of this reform is on protecting vulnerable consumers, supporting small businesses and ensuring fair market practices. The FSCA and the Prudential Authority have launched a comprehensive overhaul of conduct and prudential rules for funeral insurance products and distribution, following evidence of mis‑selling, poor value products and weak oversight in parts of the market. Draft regulatory instruments have been issued and extensive stakeholder consultations and workshops have been held, with finalisation of feedback scheduled for early 2026. Budget Review 2026 situates this work within the broader conduct‑of‑business and financial‑inclusion agenda, emphasising fair treatment and appropriate products in retail insurance markets.

Canvas not supported.

Is it working?

As of Q2‑26, no new dedicated conduct standard or revised regulatory instrument specific to funeral insurance distribution has yet been published. The authorities are still in the consultative review phase following Joint Communication 7 of 2024 and related stakeholder engagements.

Actions

Improvements in market conduct noted, with broadly positive market feedback. Some legacy claims issues remain under examination.

Are there plans?

Compliance reviews, audit enforcement and independent expert advisory groups are part of the planned implementation.

Is it on the agenda?

Yes. FSCA and PA report progress on this reform to Cabinet, with sector feedback rounds scheduled and ongoing supervisory oversight.

Goals

The overall goal is to overhaul the regulatory framework governing funeral insurance to strengthen consumer protection, product transparency and distribution rules. This is vital given that this is a sector with millions of South African policyholders and historically weak market conduct standards.

References

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) Prudential Authority South African Reserve Bank (SARB)

Summary

Funeral insurance is the most widely held insurance product in SA, making this reform socially and economically important. The focus of this reform is on protecting vulnerable consumers, supporting small businesses and ensuring fair market practices. The FSCA and the Prudential Authority have launched a comprehensive overhaul of conduct and prudential rules for funeral insurance products and distribution, following evidence of mis‑selling, poor value products and weak oversight in parts of the market. Draft regulatory instruments have been issued and extensive stakeholder consultations and workshops have been held, with finalisation of feedback scheduled for early 2026. Budget Review 2026 situates this work within the broader conduct‑of‑business and financial‑inclusion agenda, emphasising fair treatment and appropriate products in retail insurance markets.

Canvas not supported.

Is it working?

As of Q2‑26, no new dedicated conduct standard or revised regulatory instrument specific to funeral insurance distribution has yet been published. The authorities are still in the consultative review phase following Joint Communication 7 of 2024 and related stakeholder engagements.

Actions

Improvements in market conduct noted, with broadly positive market feedback. Some legacy claims issues remain under examination.

Are there plans?

Compliance reviews, audit enforcement and independent expert advisory groups are part of the planned implementation.

Is it on the agenda?

Yes. FSCA and PA report progress on this reform to Cabinet, with sector feedback rounds scheduled and ongoing supervisory oversight.

Goals

The overall goal is to overhaul the regulatory framework governing funeral insurance to strengthen consumer protection, product transparency and distribution rules. This is vital given that this is a sector with millions of South African policyholders and historically weak market conduct standards.

References

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) Prudential Authority South African Reserve Bank (SARB)

Analyst: Tinashe Kambadza
Status: In progress
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