The South African insurance legislation faces a major gap, when dealing with the Lloyd's of London coverholder. This discussion outlines similar role players but cannot determine how the coverholder is regulated. There is some form of regulation, but not enough as in the case of an insurer, broker, underwriter or authorised FSP.
It is recommended that the South African insurance authority be amended to accommodate Lloyd's of London coverholder better. The incorporation of a regulation to any of the Acts, dealing specifically with the Lloyd's coverholder. Or have a Lloyd's of London Act which deals not only with a Lloyd's coverholder, but all the other role players such as the Lloyd's broker, underwriter, underwriting and manager. The consequences of having a detailed outline of how a Lloyd's coverholder is regulated are far more beneficial, than how it is currently regulated.
Bibliography Literature
Day Legal and regulatory aspects of conflicts
Day H Legal and regulatory aspects of conflicts of interest in the operation of wholesale insurance intermediaries (LLM-dissertation University of London 2015)
Fernhout, Mostert and Mostert 2016 Risk Governance & Control
Fernhout CLR, Mostert FJ and Mostert JH "Reinsurance by short-term reinsurers in South Africa" 2016 Risk Governance & Control: Financial Markets & Institutions 35-42
Herschaft 2005 Tulane Maritime Law Journal
Herschaft JA "Not your average coffee shop: Lloyd's of London – A twenty-first- century primer on the history, structure, and future of the backbone of Marine Insurance" 2005Tulane Maritime Law Journal 169-185
Hornby Oxford Advanced Learner's Dictionary of Current English
Hornby AS Oxford Advanced Learner's Dictionary of Current English 9 th ed (Oxford University Press Oxford 2015)
Joubert and Faris Lawsa
Joubert WA and Faris JA The Law of South Africa Vol 12 2nd ed (LexisNexis Durban 2013)
Keykhah Insurance Underwriting
Keykhah M The shape of uncertainty: Insurance underwriting decisions in the face of catastrophe risk (PhD-thesis University of Oxford 2000)
Long A structural analysis of Lloyd's of London
Long RJ A structural analysis of Lloyd's of London (PhD-thesis The City University Business School London 1997)
MacGregor Lloyd's in South Africa
MacGregor A A History of Lloyd's in South Africa (LLM-dissertation University of Witwatersrand Johannesburg 2012)
Pribadi "Underwriting Process (Risk Selection) Marine Hull Case Study at PT Jasa Raharja Putra Insurance"
Pribadi KH Underwriting Process (Risk Selection) Marine Hull Case Study at PT Jasa Raharja Putra Insurance" in 2nd International Conference on Vocational Higher Education (ICVHE) The Importance on Advancing Vocational Education to Meet Contemporary Labor Demands (27-29 July 2017 Indonesia) 584-597
Ramchander The impact of the Financial Advisory
Ramchander M The impact of the Financial Advisory and Intermediary Services Act of 2002 on Consumer Awareness and Financial Service Providers in South Africa (DCom-thesis University of Zululand KwaDlangezwa 2011)
Reinecke, Van Niekerk and Nienaber South African Insurance Law
Reinecke MFB, Van Niekerk JP and Nienaber PM South African Insurance Law (LexisNexis Durban 2013)
Rolland Market Players
Rolland G Market Players: A Guide to the Institutions in Today's Financial Markets (John Wiley Chichester 2011)
Van Niekerk 2007 Juta's Business Law
Van Niekerk JP "The duties of an insurance broker" 2007 Juta's Business Law 61- 65
Case law
Executive Officer of the Financial Services Board v Ovation Global Investment Services (Pty) Ltd (Ovation Preservation Pension Fund, Ovation Preservation (2197/2007) [2007] ZAWCHC 33; 2008 (3) SA 69 (C); [2007] 4 All SA 741 (C) (14 June 2007)
Financial Sector Conduct Authority v JP Markets SA (Pty) Ltd 2020 JOL 48411 GJ
First National Bank, A Division of First Rand Bank Ltd v Commission for Conciliation, Mediation &Arbitration [2017] 11 BLLR 1117 (LC)
K&L Brokers CC v Financial Sector Conduct Authority 2019 JOL 46215 FST
Lake v Reinsurance Corporation Ltd 1967 3 SA 124 (W)
Luxor Paints (Pty) Ltd v Heritage Insurance Brokers (WLD) (Unreported) case number 04/18159 of 26 April 2006
Mediation and Arbitration 2017 11 BLLR 1117 LC
Nelson Mandela Bay Metropolitan Municipality v Watersure (Pty) Ltd 2011 1 All SA 611 (ECP)
Representative of Lloyds v Classic Sailing Adventures (Pty) Ltd 2010 5 SA 90 (SCA);
2010 4 All SA 366 (SCA)
Legislation
Admiralty Jurisdiction Regulation Act 105 of 1983
Constitution of the Republic of South Africa, 1996
Consumer Protection Act 68 of 2008
Financial Advisory and Intermediary Services Act 37 of 2002
Financial Advisory and Intermediary Services Bill of 2000
Financial Sector Regulation Act 9 of 2017
Insurance Act 18 of 2017
Insurance Act 27 of 1943
Insurance Act 37 of 1923
Long-term Insurance Act 52 of 1998
Short-term Insurance Act 53 of 1998
Bylaws
Bylaw 7 of 2005
English legislation
Definition Byelaw 7 of 2005
Financial Services Act of 1986
Financial Services and Markets Act 2000
Insurance Brokers (Registration) Act of 1977
Lloyd's Act of 1982
South African government publications
BN 59 in GG 29894 of 25 May 2007
GN R1076 in GG 34877 of 23 December 2011
GN 1437 of GG 41334 of 15 December 2017
GN 1018 in GG 41946 of 28 September 2018
Internet sources
AEGIS 2020 https://aegislondon.co.uk/our-products/binders-line-slips.html
AEGIS (London) 2020 Binders and line slips https://aegislondon.co.uk/our- products/binders-line-slips.html accessed 8 November 2020
Anon 2004 https://www.iol.co.za/personal-finance/financial-planning/how-the-fais- act-protects-you-995278
Anon 2004 How the FAIS Act protects you https://www.iol.co.za/personal- finance/financial-planning/how-the-fais-act-protects-you-995278 accessed 31 May 2020
Anon 2015 https://businessinsurance.co.za/news/underwriting-manager/
Anon 2015 What is an insurance underwriting manager https://businessinsuran ce.co.za/news/underwriting-manager/ accessed 3 August 2020
Anon 2018 https://www.womenonwheels.co.za/tips/everything-you-need-to-know- about-the-new-insurance-act/
Anon 2018 Everything you need to know about the new Insurance Act https://www.womenonwheels.co.za/tips/everything-you-need-to-know-about- the-new-insurance-act/ accessed 28 May 2020
Banton 2020 https://www.investopedia.com/terms/r/reinsurance.asp
Banton C 2020 Reinsurance https://www.investopedia.com/terms/r/reinsu rance.asp accessed 2 September 2020
Bonner 2019 https://www.thebalancesmb.com/what-is-lloyd-s-of-london-462564
Bonner M 2019 Lloyd's of London, a Commercial Insurance Marketplace https://www.thebalancesmb.com/what-is-lloyd-s-of-london-462564 accessed 27 April 2020
Bracher and Jackson 2018 https://www.financialinstitutionslegalsnapshot.com/
2018/01/amended-short-term-insurance-regulations/
Bracher P and Jackson CE 2018 Amended short-term insurance regulations https://www.financialinstitutionslegalsnapshot.com/2018/01/amended-short- term-insurance-regulations/ accessed 05 December 2021
CMS Law Firm 2004 https://www.cms-lawnow.com/ealerts/2004/10/brokers-and- binding-authorities
CMS Law Firm 2004 Brokers and binding authorities https://www.cms- lawnow.com/ealerts/2004/10/brokers-and-binding-authorities accessed 7 February 2021
Horizon Ship Brokers 2021 https://horizonship.com/ship/288m-cape-size-general- cargo-bulk-carrier-177313-dwt-2003/
Horizon Ship Brokers 2021 288m Cape Size General Cargo Bulk Carrier 177313 DWT – 2003 https://horizonship.com/ship/288m-cape-size-general-cargo-bulk- carrier-177313-dwt-2003/ accessed 03 September 2021
Kagan 2020 https://www.investopedia.com/terms/l/lloyds-london.asp
Kagan J 2020 Reinsurance https://www.investopedia.com/terms/l/lloyds- london.asp accessed 27 May 2020
Kagan 2020 https://www.investopedia.com/terms/r/reinsurer.asp
Kagan J 2020 Reinsurer https://www.investopedia.com/terms/r/reinsurer.asp accessed 2 August 2020
Kagan 2021 https://www.investopedia.com/terms/i/insurance.asp
Kagan J 2021 Insurance https://www.investopedia.com/terms/i/insurance.asp accessed 30 July 2020
Kruger 2018 https://www.moonstone.co.za/new-binder-fee-regulations-bring-consis tency/
Kruger P 2018 New Binder Fee Regulations Bring Consistency https://www.moon stone.co.za/new-binder-fee-regulations-bring-consistency/ accessed 3 August 2020
Langford 2020 https://www.nortonrosefulbright.com/en-
za/knowledge/publications/%2076c1c621/reinsurance-and-the-covid-19-pandemic
Langford J 2020 Reinsurance and the COVID-19 Pandemic: The Significance of Aggregation Provisions when Determining Casualty Catastrophe Exposure https://www.nortonrosefulbright.com/en-
za/knowledge/publications/%2076c1c621/reinsurance-and-the-covid-19- pandemic accessed 05 December 2021
Lloyd's 2011 https://www.lloyds.com/~/media/lloyds/reports/publications/7420_
lloyds_quickguide_uk-aw.pdf
Lloyd's 2011 Lloyd's Quick Guide An introduction to who we are and what we do https://www.lloyds.com/~/media/lloyds/reports/publications/7420_lloyds_quick guide_uk-aw.pdf accessed 03 September 2021
Lloyd's 2020 https://www.lloyds.com/market-resources/delegated-authorities/com pliance-and-operations/about-coverholders
Lloyd's 2020 About Coverholders https://www.lloyds.com/market-resources/
delegated-authorities/compliance-and-operations/about-coverholders accessed 10 April 2020
Lloyd's 2020 https://www.lloyds.com/about-lloyds/what-is-lloyds/the-lloyds-market
Lloyd's 2020 Business at Lloyd’s is still conducted face-to-face, and the bustling underwriting room is central to the smooth running of the market https://www.lloyds.com/about-lloyds/what-is-lloyds/the-lloyds-market accessed 8 November 2020
Lloyd's 2020 https://www.lloyds.com/market-directory/results?mode=bro&cobc=
0&cob=&name=<ti=&fca_num=&loc=&bro=0&cov=0&man=1&mem=0&omc=0&r un=0
Lloyd's 2020 Lloyd's market directory https://www.lloyds.com/market-directory/
results?mode=bro&cobc=0&cob=&name=<ti=&fca_num=&loc=&bro=0&cov
=0&man=1&mem=0&omc=0&run=0 accessed 8 November 2020
Lloyd's 2021 https://www.lloyds.com/en-za/lloyds-around-the-world/how-to-place-a- risk
Lloyd's 2021 How to place a risk with Lloyd's in South Africa https://www.lloyds.
com/en-za/lloyds-around-the-world/how-to-place-a-risk accessed 26 November 2021
Lloyd's Market Association date unknown https://www.lmalloyds.com/LMA/About_us/
Full_members_list.aspx
Lloyd's Market Association date unknown About LMA https://www.lmalloyds.
com/LMA/About_us/Full_members_list.aspx accessed 7 February 2021
Murray 2019 https://www.cliffedekkerhofmeyr.com/en/news/publications/2019/Cor porate/corporate-and-commercial-alert-31-july-the-applicability-of-the-financial-
advisory-and-intermediary-services-act-to-cryptocurrency-assets.html
Murray W 2019 The applicability of the Financial Advisory and Intermediary Services Act to cryptocurrency assets https://www.cliffedekkerhofmeyr.com/en/
news/publications/2019/Corporate/corporate-and-commercial-alert-31-july-the- applicability-of-the-financial-advisory-and-intermediary-services-act-to-
cryptocurrency-assets.html accessed 15 August 2021
National Treasury 1998 http://www.treasury.gov.za/twinpeaks/Annexure%20C.pdf
National Treasury 1998 Regulations under the Short-term Insurance Act, 1998 http://www.treasury.gov.za/twinpeaks/Annexure%20C.pdf accessed 3 August 2020
PWC 2011 https://www.pwc.co.za/en/assets/pdf/binder-regulations-newsletter- september-2011.pdf
Price Waterhouse and Coopers and Lybrand (PWC) 2011 Regulatory intelligence:
updating you on current insurance regulatory developments https://www.pwc.
co.za/en/assets/pdf/binder-regulations-newsletter-september-2011.pdf accessed 3 August 2020
Real People Life 2018 https://www.realpeopleassurance.co.za/the-financial-advisory- and-intermediary-services-act-explained/#:~:text=The%20Purpose%20of%20the%
20FAIS,who%20sell%20these%20financial%20products
Real People Life 2018 The Financial Advisory and Intermediary Services Act Explained https://www.realpeopleassurance.co.za/the-financial-advisory-and- intermediary-services-act-
explained/#:~:text=The%20Purpose%20of%20the%20FAIS,who%20sell%20t hese%20financial%20products accessed 31 July 2020
SARB 2021 https://www.resbank.co.za/en/home/what-we-do/financial-stability
SARB date unknown https://www.resbank.co.za/en/home/what-we-do/financial- stability accessed 05 December 2021
Sosa 2020 https://sosa.co/magazine/the-importance-of-reinsurance-companies-for- all-companies/sosa
Sosa Editorial Team 2020 Why Covid-19 is proof every company needs to know about reinsurance https://sosa.co/magazine/the-importance-of-reinsurance- companies-for-all-companies/ accessed 05 December 2021
The Council of Insurance Agents and Brokers 2017 https://www.ciab.com/wp- content/uploads/2017/04/RoleOfInsInt.pdf