The Prudential Authority of the South African Reserve Bank has granted JSE-listed Capitec Bank – through its wholly-owned subsidiary Capitec Life – the licence it needs to conduct a life insurance business in South Africa. In a Sens statement released on Tuesday, Capitec says the move to apply for the licence came after changes were proposed to third-party cell captive regulations as well as the strong growth in insured customer numbers.
According to Zurich Insurance Group, cell captive insurers are companies wholly-owned by non-insurers and act as direct insurers or reinsurers for a parent company and its subsidiaries. Read:Capitec aims to disrupt mobile market with data that doesn’t expire “Capitec Life will, in due course, replace the current cell captive insurers as underwriter of Capitec’s credit life and funeral policies,” the bank said.