Insurance and Pensions Commission Amendment

The Insurance and Pensions Commission Amendment Act, 2026 strengthens the Insurance and Pensions Commission (IPEC) and creates a protection fund for policyholders and pension fund members. It was published on 24 April 2026.

IPEC gets formal objects — regulating the insurance and pensions sector, keeping it fair, safe and stable, and promoting accountability and its development. It must register insurers, mutual insurance societies, brokers, medical aid societies, pension and provident funds and NSSA, and supervise them, their associates and fund administrators. It may approve actuaries, asset managers, credit rating agencies and other service providers, and investigate registered persons. A controlling stake is defined as at least 10% of shares, convertible instruments or voting rights, or the power to appoint or remove directors. Anyone in the sector who fails to give IPEC requested information faces a fine up to level 7, up to two years' imprisonment, or both. IPEC may cooperate and share information with local and foreign supervisors and law enforcement, under confidentiality rules.

The Act creates the Policyholder and Pensions and Provident Fund Members Protection Fund. Insurers and pension, provident and retirement annuity funds must pay contributions, set by regulation; failing to pay carries a fine of up to three times the contribution. The Fund also receives unclaimed benefits more than five years old and unclaimed benefits left after a fund is dissolved or an insurer wound up; these are held for their owners and may be used for other purposes, with the Minister's approval, only after 30 years unclaimed. When an insurer or fund becomes insolvent, the Fund compensates policyholders and members for their direct losses, by class of policy or fund, and may help transfer policies or fund business to another provider. Reinsurance and claims arising before the Fund starts operating are excluded, and a false claim is punishable by a fine up to level 14 or twice the value obtained, or up to 35 years' imprisonment. An eight-member board runs the Fund, whose accounts are audited by the Auditor-General and whose staff costs are capped at 25% of income.

IPEC will keep asset registers for insurers, brokers, medical aid societies and pension funds. None may dispose of a registered asset without giving IPEC 14 days' written notice with an independent valuation and reasons, and IPEC may stay the sale within 14 days if it is not in members' interests. Breaching this carries a fine up to the asset's value, up to five years' imprisonment, or both; for pension funds, the board of the fund is jointly and severally liable.

IPEC's board will have the Commissioner plus seven to nine directors, serving four-year terms renewable once, with finance, risk, audit and remuneration committees; people with conflicts of interest — including more than 5% ownership of, or employment at, a regulated entity — are disqualified. IPEC's members and staff are protected from personal liability except for intentional, reckless or grossly negligent acts, and appeals against IPEC decisions go to the Minister within 14 days. The published definitions section contains some drafting errors, including a stray reference to an amendment Act of 2024.