1.1 Who is Centriq Insurance
Centriq Insurance Company Limited (registration number 1998/007558/06) (“Centriq Insurance“) is a public company duly incorporated in terms of the Companies Act, 2008 (“Companies Act“) and a subsidiary of Centriq Insurance Holdings Limited. Centriq is a licensed non-life insurer incorporated in 1998 which forms part of the Centriq Insurance Holdings Limited which is a member of Santam Limited group of companies (“Santam Group“).
1.2 Who is Centriq Life
Centriq Life Insurance Company Limited (Registration Number 1943/016409/06) (“Centriq Life“) is a public company with limited liability duly incorporated in terms of the Companies Act and is a subsidiary of Centriq Insurance Holdings Limited, which is a member of the Santam Group. Centriq Life is a licensed life insurer and underwrites life insurance policies.
1.3 Who is Umsuka Wemali
Umsuka Wemali Finance Proprietary Limited (registration number 1995/003068/07) (“Umsuka Wemali“), a subsidiary of Fidelity Holdings 1 (Pty) Ltd, is a private company duly incorporated in terms of the Companies Act. Umsuka Wemali is an authorised financial services provider in terms of the Financial Advisory and Intermediary Services Act, 2002 (“FAIS Act“). Umsuka Wemali sells both insurance (underwritten by Centriq Insurance or Centriq Life) and non-insurance products. Umsuka Wemali sold you your “Fidelity” branded product and is the administrator of your policy and other non-insurance benefits.
2. Transfers of Policies from Centriq Insurance to Centriq Life
2.1 Why is the insurer of my policy changing?
Centriq Insurance is currently the insurer of some of the benefits contained in your policy. The insurance business relating to certain of your loan products are required to be moved to Centriq Life, a licensed life insurance company, due to Centriq Insurance being unable to write certain insurance business due to changes brought about by the new Insurance Act, 18 of 2017 which no longer permit Centriq Insurance to underwrite certain types of business and requires that business to be underwritten by a life insurer, such Communication Plan 20 as Centriq Life. Centriq Insurance will be transferring all insurance business relating to a death event, loss of income, event and a disability event relating to Credit Life products to Centriq Life subject to approval by Prudential Authority as required in terms of the section 50 of the Insurance Act, 2017 (“Insurance Act”). The products are all cobranded with Umsuka We Mali’. Centriq Life will accordingly become the new insurer of certain insurance benefits in your policy after approval of the transfer by the Prudential Authority (“Proposed Transfer“).
2.2 Which policies are affected by the transfer?
2.2.1 Credit life insurance policies underwritten by Centriq Insurance which are administered and/or sold by Umsuka We Mali (Pty) Ltd and provide the following policy benefits:
18.104.22.168 benefits in respect of a death event, , disability and retrenchment event; and referred to as the “Transfer Policy” hereinafter / collectively referred as the “Transfer Policies” hereinafter.
15.4.3 Your non-insurance products and other insurance products not listed above that were sold by Umsuka Wemali are unaffected by the Proposed Transfer.
2.3 How will the policies be transferred?
The Transfer Policies will be transferred from Centriq Insurance to Centriq Life as part of a transfer of business agreement concluded between Centriq Insurance and Centriq Life. This means that Centriq Life will become the new insurer of the Transfer Policies. This Proposed Transfer is subject to the approval by the Prudential Authority (as required in terms of the Insurance Act) and has to follow a detailed regulatory process. After approval of the Proposed Transfer by the Prudential Authority, Centriq Life will become the insurer of the Transfer Policies and provide policyholders with cover in terms of the Transfer Policies. All the terms and conditions of your policy will remain the same except Centriq Life will become the insurer of your policy. Umsuka we Mali will continue to administer your policy.
3. Do you have to give consent to the transfer of your policy or cover?
No. Consent by a policyholder is not required for a transfer in terms of section 50 of the Insurance Act. You may object through the various complaints channels that have been provided.
4. What does this mean for my policy if the Proposed Transfer is approved?
As consent is not required, a detailed regulatory process is prescribed in the Insurance Act and the Prudential Authority must approve the Proposed Transfer in order for the Proposed Transfer to be implemented. Cover in terms of the Transfer Policies will remain unchanged and benefits will remain the same. The only change will be that after the approval of the Proposed Transfer by the Prudential Authority, the Transfer Policies will be underwritten by Centriq Life but you will continue to deal with Umsuka Wemali for all services and benefits provided in terms of your policy. Your non-insurance products and other insurance products not listed above that were sold by Umsuka We Mali are unaffected by the Proposed Transfer.
5. Will policy benefits remain secured?
Yes. Policy benefits will remain secured and will be unchanged. No additional charges or costs will be levied against any policy following the Proposed Transfer.
6. How will the Proposed Transfer take place?
The transfer of the business of an insurance company is subject to a detailed regulatory process in terms of the Insurance Act and must be approved by the Prudential Authority in order for the Proposed Transfer to be implemented. The following steps in respect of the Proposed Transfer have already occurred:
1. Centriq Insurance and Centriq Life have lodged an application for approval of the Proposed Transfer with the Prudential Authority;
2. The heads of the actuarial functions of both Centriq Insurance and Centriq Life have issued reports regarding the soundness of the Proposed Transfer;
3. The Prudential Authority has given its preliminary support for the Proposed Transfer and has allowed Centriq Insurance and Centriq Life to communicate with the policyholders regarding this change, as they are required to do in terms of the Insurance Act; and
4. Notice of the Proposed Transfer has been published in various newspapers and other forms of communication to ensure that all policyholders receive adequate notice of the Proposed Transfer. Any policyholder of a Transfer Policy or other interested party affected by the Proposed Transfer may contact the Prudential Authority on any matter in connection with the Proposed Transfer by no later than 17 September 2021. If you have an objection to the Proposed Transfer, you must make representations to the Prudential Authority by calling and/or emailing and/or writing to the Prudential Authority. These representations must reach the Prudential Authority by no later than 13 December 2021. If you do not have an objection to the Proposed Transfer, you do not have to file affidavits or make representations. Once the Prudential Authority approves the Proposed Transfer, your policy will be automatically transferred to Centriq Life. You may also object directly to Umsuka Wemali, Centriq Insurance or Centriq Life at the communication channels that will have been communicated to you.
Please note that the Ombudsman for Long Term Insurance, Short Term Insurance and the Ombud for Financial Advisory and Intermediary Services will not be able to assist you in this matter.
7. What is the Transfer process
7.1 The process of the Transfer will be as follows:
Item Action Date
1.Initial discussion with the Prudential Authority in respect of the transfer of the Proposed Transfer. Complete
2. Submit the following application forms (including annexures, e.g. Communication Plan, etc.) to the Prudential Authority:
· Application Form IF024
· Application form IF021
collectively “application forms” Week commencing
3. Prudential Authority to consider the Application Forms and provide feedback on Communication Plan and other issues arising from Application Forms.
4. Update proposed Communication Plan, communication documents and timeline with comments received from the Prudential Authority and send revised documents to the Prudential Authority.
5. Submit a full list of documents to be made available for inspection to the Prudential Authority.
Item Action Date
6. The Prudential Authority to provide in principle approval of the implementation of the timeline and proposed Communication Plan.
24 November 2021
7. Prudential Authority to confirm list of documents to be made available for inspection.
24 November 2021
8. Implementation and roll-out of approved Communication Plan.
29 November 2021
9. Documents made available on the websites of Centriq and Centriq Life.
29 November 2021
10. Call centres of Centriq and Centriq Life to become operational in relation to complaints and/or enquiries received through the Centriq and Centriq Life call centres in respect of the Proposed Transfer. With effect from 29 November 2021 to 6 Decmber 2021 excluding Saturdays and Sundays
11. Centriq and Centriq Life to communicate with Affected Policyholders
29 November 2021 – 6 December 2021
12. Centriq and Centriq Life Internal Audit teams to compile a report on the implementation of the approved policyholder communication plan.
6 December 2021 – 13 December 2021
13. Prudential Authority to deal with possible complaints and enquiries received during the Inspection Period. Up to
13 December 2021
14. Heads Internal Audit Function of Centriq and Centriq Life to review and report on the process.
29 November 2021 to 13 December 2021
15. Heads Internal Audit Function of Centriq and Centriq Life to submit report with the Prudential Authority for consideration
20 December 2021
Item Action Date
16. Receive the Prudential Authority’s written approval of the Application Forms – Week commencing 27 December 2021
8. What if I do not want Centriq Life to underwrite any cover relating to me?
You are allowed to make representations to the Prudential Authority, to Umsuka Wemali, to Centriq Insurance or to Centriq Life if you have any concerns about the Proposed Transfer. These representations must reach the Prudential Authority, Umsuka Wemali, Centriq Insurance or Centriq Life no later than 13 December 2021. The contact details are set out below.
9. Where can I obtain more information about the Proposed Transfer?
9.1 Copies of the documents mentioned below shall be available for inspection on the websites of:
9.1.2 Centriq Insurance at: www.Centriq.co.za
9.1.3 Centriq Life at www.Centriq.co.za
9.2 The documents available for inspection will include:
9.2.1 Copy of the Application Forms (excluding annexes);
9.2.2 Copy of the extract from the reporting templates for Centriq Insurance reflecting the financial positions before the Proposed Transfer;
9.2.3 Copy of the extract from the reporting templates for Centriq Life reflecting the financial positions before the Proposed Transfer;
9.2.4 Copy of the extract from the reporting templates for Centriq Insurance reflecting the pro forma financial positions after the Proposed Transfer;
9.2.5 Copy of the extract from the quantitative reporting templates for Centriq Life reflecting the pro forma financial positions after the proposed transfer;
9.2.6 Copy of the annual financial statements for the year ended 2020 for Centriq Life;
9.2.7 Copy of the annual financial statements for the year ended 2020 for Centriq Insurance;
9.2.8 A copy of the head of actuarial function’s report for Centriq Insurance; Communication Plan 25
9.2.9 A copy of the head of actuarial function’s report for Centriq Life;
10. Who can I contact if I have enquiries regarding the Proposed Transfer?
10.1 Please direct all queries as follows:
10.1.1 Umsuka Wemali at: 086 186 7852 or email UmsukaLoans@fidelitysecurity.co.za;
10.1.2 Centriq Insurance at: 011 268 6490 or email firstname.lastname@example.org; or
10.1.3 Centriq Life at: 011 268 6490 or email email@example.com. Alternatively, please direct your enquiries to the Prudential Authority per email at SARBPA@resbank.co.za.
Centriq Insurance Company Limited and Centriq Life Insurance Company Limited are authorised financial services providers and licensed insurers conducting non-life and life insurance business.
COPYRIGHT © 2017 CENTRIQ INSURANCE COMPANY LIMITED