QUESTIONNAIRE ON
CROSS BORDER INSURANCE BUSINESS
CROSS BORDER INSURANCE BUSINESS BEING CONDUCTED BY
INSURERS REGISTERED UNDER THE LONG-TERM INSURANCE ACT, NO
52 OF 1998, OR THE SHORT-TERM INSURANCE ACT, NO 53 OF 1998
Important Notes
1 The information is requested both in terms of section 4(2) of the Long-term Insurance
Act and the Short-term Insurance Act. The information must be provided for the
financial year-end ending in 2005. The document must be signed off by an Executive
Director and the Public Officer of the insurer.
2 The information must be submitted to the FSB on A4 paper and also in electronic form.
3 Exchange rate: The year-end rates of exchange will apply in converting foreign assets
and liabilities.
4 Where applicable distinguish between direct and reinsurance business and report on
both.
5 All insurers are requested to duly complete the questionnaire and forward the
information before 31 May 2006 to:
Mr Kerwin Martin: Specialist Analyst
Insurance Division
Financial Services Board
PO Box 35655
Menlo Park, Pretoria
0102
Fax: (012) 347 8263
e-mail: kerwinm@fsb.co.za
1
Definitions
For the purpose of this questionnaire the words below will have the following meaning“home jurisdiction” - means the jurisdiction in which the parent insurer is incorporated.
“host jurisdiction” - means the foreign jurisdiction in which a branch of a local registered
insurer is located, or in which a subsidiary of the local registered insurer is incorporated.
“internal controls” - the means by which compliance with the insurer’s risk management
policies is maintained. Regular reporting, including the use of measurements and metrics
required to be within limits specified by the risk management policies, may be used to verify
compliance.
“jurisdiction” - refers to a country, state, province, or other jurisdiction with legally
enforceable local insurance laws that relate to the incorporation or operation of insurance
companies.
“non SADC jurisdiction” - means a jurisdiction other than an SADC jurisdiction.
“off-shore branch” - means a South African registered insurance company’s establishment
which is not a separate legal entity that is incorporated under company law and which is
situated in a jurisdiction other than the home jurisdiction.
“SADC” - means Southern African Development Community.
“SADC jurisdiction” - means any one or more of Angola, Botswana, Democratic Republic of
the Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Swaziland,
Tanzania, Zambia and Zimbabwe.
“subsidiary company” - means a subsidiary company as defined in the home jurisdiction’s
company law.
2
NAME OF INSURER: ____________________________________
FINANCIAL YEAR-END IN 2005: ________________________________________(specify)
PERIOD OF REPORTING: ________________________________
EXCHANGE RATE(S) THAT APPLY: ________________________
A
Information on off-shore branch business conducted by the registered
insurer within a SADC jurisdiction
1
Does the insurer have an off-shore branch in a SADC jurisdiction?
Yes
No
2
If the answer in item 1 is yes,2.1
state the total number of branches.
______________________________________________________
2.2
state whether the branch(es) is/are subject to regulatory supervision.
Yes
No1
1.
If the answer is “No” kindly explain.
__________________________________________________________
2.3
provide the following information in respect of every off-shore branch. Complete
the information in the rows beneath for the largest branch. Then complete the
same information for every other off-shore branch on an additional worksheet.
3
Name of branch:
Host jurisdiction where in operation:
Date when branch was established:
Name of the applicable regulatory body in host jurisdiction:
Address of branch in host jurisdiction:
Rands
Total assets in respect of the branch
Total liabilities in respect of the branch
Total gross premium income of the branch
Total net premium income of the branch
Regulatory capital adequacy requirements (as per home jurisdiction’s
requirements) in respect of the branch business
Regulatory capital adequacy requirements (as per the host
jurisdiction’s requirements) in respect of the branch business
Broadly describe the branch’s internal controls, including comprehensive and regular
reporting between the branch and its head office and indicate the Board of the insurer’s
assessment of the overall effectiveness of these control systems.
Describe the Board of the insurer’s assessment of the overall financial situation of the branch.
Has the branch been subject to regulatory inspection or investigation and if so please furnish
full details.
State the scope of the activities of the branch and its role within the insurance group.
Indicate whether the host jurisdiction requires that the branch be subject to external audit.
Please be specific whether or not an audit firm that is different to the audit firm of the insurer
undertakes the audit and also provide name of that audit firm.
4
B
Information on an off-shore subsidiary company of the registered South
African insurer conducting insurance business in a SADC jurisdiction
1
Does the insurer have a subsidiary company in another SADC jurisdiction that
conducts insurance business?
Yes
No
2 If the answer in item 1 is yes,
2.1
state the total number of subsidiaries.
______________________________________________________
2.2
state whether the subsidiary(ies) is/are subject to regulatory supervision.
Yes
No1
1.
If the answer is “No” kindly explain.
2.3
provide the following information in respect of every off-shore subsidiary
conducting insurance business. Complete the information in the rows beneath
for the largest subsidiary. Then complete the same information for every other
off-shore subsidiary on an additional worksheet.
Name of the subsidiary company:
Host jurisdiction where in operation:
Date when subsidiary was established:
Name of the applicable regulatory body in host jurisdiction:
Address of subsidiary in host jurisdiction:
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Rands
Total assets in respect of subsidiary’s insurance business
Total liabilities in respect of subsidiary’s insurance business
Total gross premium income of subsidiary
Total net premium income of subsidiary
Regulatory capital adequacy requirements (as per home jurisdiction’s
requirements)
Regulatory capital adequacy requirements (as per host jurisdiction’s
requirements)
Broadly describe the subsidiary’s internal controls, including
comprehensive and regular reporting between the subsidiary and
holding company and indicate the Board of the insurer’s assessment
of the overall effectiveness of these control systems.
Describe the Board of the insurer’s assessment of the overall
financial situation of the subsidiary.
Has the subsidiary been subject to regulatory inspection or
investigation and if so please furnish full details.
State the scope of the activities of the subsidiary and its role within
the insurance group.
Indicate whether the host jurisdiction requires that the subsidiary be
subject to external audit and, where it is, whether the audit is
undertaken by an audit firm which is different to the audit firm of the
insurer and, whether the audit work is sufficiently thorough.
6
C
Cross border operations other than branch office business or business
conducted in a subsidiary that is operated in the SADC region
1
Has the insurer provided cross border insurance services (other than those in A and B
above) to persons and / or insurers (i.e. reinsurance business) in another SADC country?
Furthermore please advise whether this business is sourced through independent
intermediaries or through the insurer’s own marketing force? (please give full details).
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2
Has your company placed reinsurance business with an insurer in another SADC
country? (please give full details)
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3
Has your company provided outsourcing services to an insurer in another SADC
country? (please give full details).
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4
Has your company made use of outsourcing services provided by an insurer, a person
or any other entity located in another SADC country? (please give full details).
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5
Confirm whether or not more than 25% of the shares or any other interest held directly
in your company, is owned by a foreign person or entity located in another SADC country.
(please specify).
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6
Does your company directly own more than 25% of the shares or any other interest in
a foreign insurer located in another SADC country? (please give full details)
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7
Is your company party to a joint venture with an insurer located in another SADC
country?(please give full details)
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8
D
Information on off-shore branch business conducted by the registered
insurer within a jurisdiction that does not form part of the SADC region
1
Does the insurer have an off-shore branch in a country that does not form part of the
SADC region?
Yes
No
2
If the answer in item 1 is yes,2.1
state the total number of branches.
______________________________________________________
2.2
state whether the branch(es) is/are subject to regulatory supervision.
Yes
No1
1.
If the answer is “No” kindly explain.
__________________________________________________________
2.3
provide the following information in respect of every off-shore branch. Complete
the information in the rows beneath for the largest branch. Then complete the
same information for every other off-shore branch on an additional worksheet.
9
Name of branch:
Host jurisdiction where in operation:
Date when branch was established:
Name of the applicable regulatory body in host jurisdiction:
Address of branch in host jurisdiction:
Rands
Total assets in respect of the branch
Total liabilities in respect of the branch
Total gross premium income of the branch
Total net premium income of the branch
Regulatory capital adequacy requirements (as per home jurisdiction’s
requirements) in respect of the branch business
Regulatory capital adequacy requirements (as per the host
jurisdiction’s requirements) in respect of the branch business
Broadly describe the branch’s internal controls, including comprehensive and regular
reporting between the branch and its head office and indicate the Board of the insurer’s
assessment of the overall effectiveness of these control systems.
Describe the Board of the insurer’s assessment of the overall financial situation of the branch.
Has the branch been subject to regulatory inspection or investigation and if so please furnish
full details.
State the scope of the activities of the branch and its role within the insurance group.
Indicate whether the host jurisdiction requires that the branch be subject to external audit and,
where it is, whether the audit is undertaken by an audit firm which is different to the audit firm
of the insurer and, whether the audit work is sufficiently thorough.
10
E
Information on an off-shore subsidiary company of the insurer conducting
insurance business in a jurisdiction that does not form part of the SADC
region
1
Does the insurer have an off-shore subsidiary company that conducts insurance
business in a jurisdiction that does not form part of the SADC region?
Yes
No
3 If the answer in item 1 is yes,
2.1
state the total number of subsidiaries.
______________________________________________________
2.2
state whether the subsidiary(ies) is/are subject to regulatory supervision.
Yes
No1
1.
If the answer is “No” kindly explain.
2.3
provide the following information in respect of every off-shore subsidiary
conducting insurance business. Complete the information in the rows beneath
for the largest subsidiary. Then complete the same information for every other
off-shore subsidiary on an additional worksheet.
Name of the subsidiary company:
Host jurisdiction where in operation:
Date when subsidiary was established:
Name of the applicable regulatory body in host jurisdiction:
Address of subsidiary in host jurisdiction:
11
Rands
Total assets in respect of subsidiary’s insurance business
Total liabilities in respect of subsidiary’s insurance business
Total gross premium income of subsidiary
Total net premium income of subsidiary
Regulatory capital adequacy requirements (as per home jurisdiction’s
requirements)
Regulatory capital adequacy requirements (as per host jurisdiction’s
requirements)
Broadly describe the subsidiary’s internal controls, including
comprehensive and regular reporting between the subsidiary and
holding company and indicate the Board of the insurer’s assessment
of the overall effectiveness of these control systems.
Describe the Board of the insurer’s assessment of the overall
financial situation of the subsidiary.
Has the subsidiary been subject to regulatory inspection or
investigation and if so please furnish full details.
State the scope of the activities of the subsidiary and its role within
the insurance group.
Indicate whether the host jurisdiction requires that the subsidiary be
subject to external audit and, where it is, whether the audit is
undertaken by an audit firm which is different to the audit firm of the
insurer and, whether the audit work is sufficiently thorough.
12
F
Cross border operations other than branch office business or business
conducted in a subsidiary in another country than a SADC country
1
Has the insurer provided cross border insurance services (other than those in D and E
above) to persons and / or insurers (i.e. reinsurance business) in another country than a
SADC country? Furthermore please advise whether this business was sourced through
independent intermediaries or through the insurer’s own marketing force? (please give full
details)
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2
Has your company placed reinsurance business with an insurer in another country
than a SADC country? (please give full details)
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3
Has your company provided outsourcing services to an insurer in a country other than
a SADC country? (please give full details)
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4
Has your company made use of outsourcing services provided by an insurer, a person
or any other entity located in a country other than a SADC country? (please give full details)
……………………………………………………………………………………………………………
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13
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5
Confirm whether or not more than 25% of the shares or any other interest held directly
in your company, is owned by a foreign person or entity located in another country that is not
a SADC country. (please specify)
………….…………………………………………………………………………………………………
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6
Does your company directly own more than 25% of the shares or any other interest in
a foreign insurer located in another country that is not a SADC country? (please give full
details)
………….…………………………………………………………………………………………………
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7
Is your company party to a joint venture with an insurer located in another country that
is not within the SADC region? (please give full details)
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________________________________
Signature of Executive Director
______________________
Print name
_____________________
Date
________________________________
Signature of Public Officer
______________________
Print name
_____________________
Date
14