Capitec obtains a license for life insurance activities

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The Reserve Bank of South Africa’s Prudential Authority has granted JSE-listed Capitec Bank – through its wholly-owned subsidiary Capitec Life – the license it needs to carry on insurance business. living in South Africa.

In a sensible press release published on Tuesday, Capitec says the decision to apply for the license came after changes were proposed to captive third-party cell regulations as well as strong growth in the number of insured customers.

Prior to receiving the license, Capitec offered life and funeral insurance policies to its customers through two cellular captive agreements with the underlying policies underwritten by licensed cellular captive insurers.

According to Zurich Insurance Group, cellular captive insurers are companies that are 100% owned by non-insurers and act as direct insurers or reinsurers for a parent company and its subsidiaries.

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“Capitec Life will, in due course, replace the current captive cellular insurers as the underwriter of Capitec’s borrower and funeral policies,” the bank said.

“Capitec remains committed to ensuring that its customers continue to enjoy the simple, affordable, accessible and personalized experience to which they are accustomed.

The Stellenbosch-based banking and financial services group’s share price rose more than 5% in afternoon trading on Tuesday after the announcement, trading at around 1634.63 rand per share.

Listen: Capitec reports 17% growth in overall profit

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