Deputy Speaker, I should have lobbied the hon Seaton to ensure that we could get a productivity bonus for bringing so many Bills here.
The Insurance Laws Amendment Bill, 2008, is very similar to the Financial Services Laws General Amendment Bill, the one that has just been described by the hon Bekker as an omnibus Bill, because it seeks to address urgent technical and regulatory issues in both the Long-term and the Short-term Insurance Act.
The amendments are contained in one amending Bill as many of the provisions are similar in the two pieces of legislation. In broad terms, the proposed amendments to the Long-term and the Short-term Insurance Acts are required in order to close the regulatory gaps identified in existing statutes; to effect improvements to certain provisions of existing legislation; and to update outdated references.
The amendments, firstly, expand the written and reporting obligations of independent risk assessors such as auditors and statutory actuaries to enhance transparency in corporate governance of client funds, thereby strengthening consumer protection and industry oversight.
Secondly, they improve risk management rules for insurers in a move towards risk-based supervision, with the main objective of promoting a more stable financial system - particularly relevant against the backdrop of recent financial market turmoil - as well as an improved allocation of regulatory resources in the esteemed Financial Services Board, allowing for more effective supervision of our financial services sector.
Thirdly, they protect customers by regulating and clarifying the relationship between an insurer, on the one hand, and an outsourced person, who provides service functions between the insurer and the client, on the other, in an instance where the insurer's liability may be varied by the insurer giving authority to the third party to take on, or to manage, the insurance business.
Fourthly, they provide additional regulatory protection for consumers of assistance business policies; and, lastly, clarify the regulatory demarcation of products between health and financial services to ensure alignment between health and financial sector policy.
In closing, I would like to remind this House that the proposed amendments are crucial to strengthening consumer protection, enhancing financial stability and removing legal uncertainty across the Acts.
I would again like to convey my very special thanks to the portfolio committee under the steady hand of its Chairperson, the hon Nene. The committee consistently provides an insightful review of legislation placed before it for consideration and I hereby request that the House supports the Insurance Laws Amendment Bill 2008. I thank you.