Technical Report on the Consumer Credit Insurance Market in South Africa

This technical report provides a review of the current market structure and business practices of the consumer credit insurance (CCI) sector in South Africa including the prevailing policy and regulatory framework. It presents key findings and explores how the existing regulatory framework may be enhanced to achieve better outcomes for the consumer. The report aims to engender greater engagement and consultation with the CCI industry and enable  the government to address challenges in the CCI market. It covers the following sections in detail:

• Current regulatory provisions applicable to CCI in South Africa, as well as an overview of international approaches to CCI regulation;
• Landscape and key features of CCI based on an analysis of reported data, qualitative information, a mystery shopping exercise, and consumer interviews;
• Findings of the review with a focus on the most significant market concerns;
• Potential focus areas to inform policy responses including regulating the pricing of CCI, regulating market conduct non-pricing practices, and protecting consumers through insurance for credit providers;
• Recommendations of next steps for strengthening CCI in the country.