Policy and Procedures

Subject:

Licensing Policy and Procedures

Number:

S-1

Scope:

Licensing and Inspections

Date:
Revised:

January 2008
February 2010

Table of Contents
1. Introduction ................................................................................................................. 2
2. Procedures ................................................................................................................... 3
Appendix A Process Timetable ....................................................................................... 4
Appendix BRequirements for Insurers ............................................................................. 9
Appendix C Requirements for Insurance Brokers and Agents ...................................... 12
Appendix D Requirements for Corporate Agents and Main Representatives ............... 16
Appendix E - Insurers Application Checklist ................................................................ 18
Appendix F - Brokers and Agents Application Checklist ............................................. 21
Appendix G - Individual Agent Checklist ..................................................................... 24
Appendix H - Corporate Agents and Main Representatives Checklist.......................... 26
Appendix I - Criteria for Analysing Application .............................................................. 28
Appendix J - Fit and Proper Test (Criteria) for Chairman/ Chief Executive/Board of
Directors of an Insurance Company ................................................................................. 31
Appendix K - Fit and Proper Test for Appointment of Key Employees of an Insurance
Company ........................................................................................................................... 34
Appendix L- Assessment of Financial Statements / Business Plan .................................. 36

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1.

Introduction

All legal entities operating in insurance business in the Kingdom of Swaziland need to be
licensed in terms of the Insurance Act 2005.
A well functioning insurance market plays an important role in economic development.
As such the licensing procedures are a key element of the licensing and regulatory
framework that will:
a) Minimise the possibility of insurer insolvency
b) Ensure that insurers have appropriate systems in place to meet established
policyholders expectations and service standards as well as to monitor their
performance against those expectations and standards.
c) Promote the development and stability of the market by providing a level playing
field for all operators in compliance with international standards and principles
and consumer protection policies, so as to ensure the existence of consistent
standards that are applied to all applicants who wish to participate in the sector.
All applications should be made in writing in terms of Section 6,15 and 19 of the
Insurance Act 2005, for insurers, brokers and agents, consecutively, and a licence will be
issued once the Registrar is satisfied that the conditions set for licensing have been met.
These are the procedures that have been adopted by RIRF in relation to the licensing of
all legal entities wishing to operate in the insurance sector in Swaziland. While RIRF will
consider the procedures in exercising its statutory duty and discretion in relation to
licensing, it may exercise those powers and discretions other than in accordance with
these procedures where necessary in accordance with the discretionary powers conferred
on the Registrar by the Act.
These procedures give guidance concerning:
a) How applications for registration will be handled for those wishing to operate in
the insurance industry.
b) Documentation that need to be submitted when applying for a licence.
c) Guidelines on how applications will be assessed for approval and how the
requirements will be interpreted and applied.
These procedures apply to the following departments who have an input in the licensing
of entities that seek RIRFs approval:
a) Licensing and Inspections department in terms of the licensing process.
b) Enforcement, Legal and Policy department in terms of the interpretation of
relevant statutes.
c) Finance department in terms of the collection of fees.

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2.

Procedures

RIRFs application process has nine sections designed to guide its staff in the approval
process.
2.1

Submission of Application

Before submission of the application, the applicant is expected to be familiar with the
requirements for registration in the insurance market. The length of time it takes to
review an application depends on how well prepared the application was before
submission. To this end, applicants are encouraged to contact RIRF with questions before
submitting their application.
Applicants are further expected to be familiar with the local insurance legislation and in
this regard, the Act, regulations, directives and circulars are available for information and
a summary of requirements (Appendix B; C or D).
2.2

Payment of the Application and Registration Fees

Relevant fees for application and registration in case of approval have to be paid. On
receipt of payment, fees are submitted to the Finance department for receipting.
2.3

Review the Completeness of the Application

On presentation of the application, it will immediately be reviewed for completeness, to

ensure that the application has been submitted in the required format, with the relevant
attachments as indicated on the schedule of requirements for registration (Appendix E).
Should the application be incomplete, all outstanding requirements should be highlighted
at step (2.4) below.
2.4

Acknowledgement of Application

Within 3 days from date of submission of the application, the applicant must be informed
in writing of documents received and those still outstanding, as the case may be. The
process of evaluation of the application should then begin with the submitted application
documents. Should the application fee not be submitted together with the application, the
applicant should be informed that their application will not be considered until the
relevant fees have been paid.
2.5

Review Application

The application is then reviewed to ensure that it meets minimum statutory requirements
using Appendices B; C or D.

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2.6

Analysis Report t to Manager with Recommendations

An analysis report is prepared for the manager based on results of the review, stating
recommendations as well as any deficiencies that have been identified. The report should
be in the form of a minute and should report on all the areas indicated in the schedule of
requirements.
2.7

Peer Review of Analysis Report

Before the report is submitted to the manager for review, it is the responsibility of each
staff member to ensure that the analysis report is reviewed for correctness by a colleague
within the department as a quality control mechanism and to ensure continuing learning
for all staff members.
2.8

Analysis by Manager and Communication of Course of Action

The Manager will comment on each section of the report. Where further clarification of
report is needed, the Manager will discuss the issue with the author of the report in order
to come to a common understanding of the issue at hand. Any deficiencies identified will
be commented on. Manager will indicate agreement or not with recommendations made
in the report as well as state the way forward. Approval or disapproval of an application
will be decided by the Registrar.
2.9

Total Turnaround Time

While the goal of RIRF is to review all applications within 60 days of receipt of
application, licensing will depend on how soon everything necessary to facilitate the
process is submitted by the applicant (Appendix A).

Appendix A Process Timetable

Step Description
Preliminary inquiry about
1.
requirements
2..

3.

Responsibility
Licensing staff

Receive and record application Registrar's

secretary
Initial review of application

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Registrar

Page 4

Timing

Days Subtotals

immediate

immediate

1 day

1.0

Licensing Procedures

Step Description
Forward application to
4.
manager

Responsibility
Registrar

5.

Record, check completeness,

assign number

Manager

6.

Forward application fee to

Finance

Manager

7.

Allocate application to staff

member

Manager

Check completeness

Licensing staff

8.

9.

Prepare acknowledgement,
request missing documents

Licensing staff

10.

Review letter of
acknowledgement

Manager

Sign letter of
acknowledgement
Analyze content of application

Registrar

11.
12.

Licensing staff

13.

Prepare report and

recommendations

Licensing staff

14.

Review report and content of

application

Manager

15.

Review manager's written

comments

Licensing staff

Discuss report and next steps

Manager and
Licensing staff

16.
17.

Processing after analysis:

18.

If ready for approval:

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Timing

Days Subtotals

immediate

1 day

1.0

immediate

immediate

.5 day

.5 day

.5 day

.5 day
4 days

1 day

2 days

.5 day

.5 day

0.5

0.5

0.5

0.5

4.0

4.0

1.0

2.0

0.5

0.5

8.0

Licensing Procedures

Step Description
Prepare license and letter,
19.
including any conditions
20.

21.

22.

23.

24.

25.
26.

27.

Review license and letter

Sign license and letter

Responsibility
Licensing staff

Manager

Registrar

Update register of licensees,

file copy of license

Licensing staff

Update website

Finance &
Admin

Prepare letter with questions,

concerns, deadline for
response
Review letter

.5 day

.5 day

0.5

0.5

0.5

weekly

Sign letter

.5 day
Manager

Registrar

29.

Prepare letter with explanation

of reasons

Licensing staff

Review letter

Manager

32.

.5 day

0.5

2.0

Licensing staff

If application is rejected:

31.

.5 day

Days Subtotals

If additional information is
needed:

28.

30.

Timing

Sign letter

Registrar

.5 day

.5 day

.5 day

.5 day

.5 day

0.5
0.5

0.5

0.5

0.5

0.5

0.5

0.5

Receive Additional
Information:

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Step Description
Receive and record additional
33.
information
34.

Initial review of information

Responsibility
Registrar's
secretary
Registrar

35.

Forward information to
manager

Registrar

36.

Record and forward to staff

member

Manager

Check completeness

Licensing staff

37.

38.

Analyze information

Licensing staff

Prepare supplementary report

and recommendations

Licensing staff

Review supplementary report

and information
Review manager's written
comments

Manager

42.

Discuss next steps; go to step

17

Manager and
Licensing staff

43.

Deadline for information is

not met:
Licensing staff

44.

Prepare notice that application

will be closed in two weeks
unless information is received
or extension is approved
Review notice

Manager

39.

40.
41.

45.

46.

Sign notice

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Licensing staff

Timing
immediate

1 day

Page 7

0.5

1.5

immediate

immediate

.5 day

2 days

.5 day

1 day
.5 day

.5 day

.5 day

Registrar

Days Subtotals

.5 day

.5 day

0.5

2.0

0.5

1.0
0.5

0.5

7.0

0.5

0.5

0.5

Licensing Procedures

Step Description

Responsibility

Timing

immediate

47.

If extension is requested:

48.

Receive and record request for

extension

Registrar's
secretary

Initial review of request

Registrar

49.

Days Subtotals

.5 day

0.5

50.

Forward to manager

Registrar

immediate

51.

Record

Manager

immediate

52.

Discuss request and develop

recommendation

Manager and
Licensing staff

.5 day

53.

Prepare letter in response to

request

Licensing staff

54.

Review letter

Manager
Registrar

55.

Consider recommendation,
sign letter (or request meeting
to discuss and/or revise)

56.

If no information or request
for extension:

57.

Prepare notice that application

has been closed

Licensing staff

Review notice

Manager

58.

59.

Sign notice

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.5 day

Page 8

0.5

immediate

.5 day

Registrar

0.5

.5 day

.5 day

.5 day

0.5

2.0

0.5

0.5

0.5

1.5

Licensing Procedures

Appendix BRequirements for Insurers

Registration Requirements Insurers

In Terms of the Insurance Act, 2005 (Act No. 7 of 2005)
In order to apply for a licence to operate as an insurer in the Kingdom of Swaziland, the
following requirements are applicable. Please, note that applications for long-term
insurance and short-term insurance should be lodged separately.
All applications for a permanent licence are to be made in terms of section 6 of the
Insurance Act 2005. A permanent licence will be issued once the Registrar is satisfied
that the following conditions have been met and the application should include the
following information in duplicate:
1.

List of classes of insurance business to be underwritten

2.

A certified copy of a certificate of incorporation as a public company together with

an authenticated copy of the memorandum and articles of association of the
company;

3.

A statement of proof of physical address of the principal office, being the premises
where the business is going to be conducted;

4.

A statement of appointed bankers of the company as well as proof and details of the
companys trust account;

5.

A statement (business plan) showing:

a) The proposed underwriting policy of the company;
b) Particulars of proposed reinsurance arrangements;
c) The basis of premium rates;

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d) The company's investment strategy

e) Proof of paid up share capital in terms of section 7 (2) and (3) of the Act.
f) A certificate by an actuary certifying the financial soundness of the company's
intended business plan. (Valuators name, address, professional qualification and
experience must be furnished in the statement)
g) The business Corporate Governance strategy
h) The business risk management strategy
i) Audited financial statements in respect of the applicants last preceding financial
year if the applicant is already conducting insurance business.
6.

Application for approval to use an abbreviated name for the company accompanied
by the approval of the Registrar General of the exclusive use of the name;

7.

Application for approval of an Auditor;

8.

Application for approval of a Valuator (Valuators name, address, professional

qualification and experience must be furnished in the statement)

9.

Application fee of E 2000.00

10.

Registration fee of E 10,000.00

11.

A list of the persons who are shareholders of the company showing each persons
interest in the company;

12.

Proof of repatriation or repatriation plan of all policy contracts written in Swaziland

on or before the commencement of this Act, to the new Company. This should
include the policy book as well as assets related to such book.

13.

In addition, we require the following details of all shareholders, directors and

principal representative:
a) Name, address, nationality and country of permanent residence
b) Qualifications, work experience and other professional and/or business interest
c) Full details of reputation and character (credit worthiness, bankruptcy, fraud,
dishonesty, insolvency, disqualification as a director, etc.)

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d) Professional and work conduct (dismissals, disciplinary actions, litigation, etc.)

e) Foreign insurance companies should also provide a list of countries in which the
applicant carries on business as an insurer and a certificate by the regulatory
authority of such country indicating whether the applicant has consistently
complied and is complying with the law of each country.
The central administration of policies, contracts and underwriting should be situated in
Swaziland as well as the full management of operations should rest with the local
principal representative and Board.
In general all registration requirements set out above should be read together with the Act
and Regulations as well as any requirement that the Registrar may have from time to time.

___________________
SANDILE DLAMINI
REGISTRAR OF INSURANCE AND RETIREMENT FUNDS

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Appendix C Requirements for Insurance Brokers and Agents

Registration Requirements Insurance Brokers and Agents

In Terms of the Insurance Act Of 2005
In order to apply for a licence to operate as an insurance broker and agent in the Kingdom
of Swaziland, the following requirements are applicable.

Broker
An application letter requesting approval for a licence in terms of section 15 of the
Insurance Act must be addressed to the Registrar of Insurance and Retirement Funds. The
letter should state;
Reasons for applying
Indicate the type of insurance business you seek to market (short-term insurance and/or
long-term insurance).
Types of classes of insurance business that will be marketed
The application should be accompanied by the following documents:
1.

Authenticated proof that the business is registered in Swaziland (certificate of

incorporation and memorandum and articles of association)

2.

A statement of the address of the company's physical office in Swaziland.

3.

A statement of the name, address, nationality, qualifications, work experience and

other professional and/or business interest (setting out his educational qualification
and his experience in the insurance industry) and country of residence of the
company's chairman, other directors and the principal representative.

4.

A statement with full details of applicants reputation and character (credit

worthiness, bankruptcy, fraud, dishonesty, disqualification as a director, insolvency
etc.)

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5.

A statement of professional and work conduct (dismissals, disciplinary actions,

litigation, etc.)

6.

In case of shareholders, a statement that includes but is not limited to difficult

economic situation, involvement in illegal transactions such as money laundering,

7.

Police clearance certificate of all directors and principal representative.

8.

Details of Trust Account

9.

Risk management strategy

10.

Corporate Governance strategy.

11.

List of countries in which the applicant carries on business as a broker and a

certificate by the regulatory authority of such country indicating whether the
applicant has consistently complied and is complying with the law in each country.

12.

Proof of guarantee ceded to the registrar in the form of:

Fidelity insurance cover

Securities issued by the Government of Swaziland
Guarantee issued by a licensed bank or financial institution in terms of the
Financial Institutions Act of 2005 or
Deposit with the Registrar an amount to be deposited into the Benefit Trust Fund
in terms of section 43 of the Insurance Act, 2005

The guarantee amount should be equal to at least 20% of the expected premium that the
broker expects to collect on behalf of the insurers in his next financial year and shall not
be less than E50, 000.00.
13.

Proof of professional indemnity insurance of E2, 000,000.00.

14.

Application fee of E 1000.00 and registration fee of E2, 000.00.

15.

Enclose a list of the persons who have an interest in the company and also their
percentage interest (share certificates).

16.

Enclose a declaration from each member of the board stating that they are unaware
of any reason that might lead to the registrar refusing to approve registration in
terms of section 16 of the Insurance Act.

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17.

Audited financial statements in respect of the applicants last preceding financial

year if the applicant is already conducting insurance business.

18

Financial projections for three years (indicating total expected premiums to be

collected) of the business.

19.

Application for approval of the use of the abbreviated name which should be
accompanied by a statement from the Registrar Generals Office confirming the
exclusivity of the proposed name.

20.

A declaration that the company has not entered into any agreement with an insurer
giving the insurer preference in the placing of insurance business and shall not in
future enter into such an agreement.

21.

The central administration of policies should be situated in Swaziland and not be

outsourced to any institution outside Swaziland.

In general all registration requirements set out in the Act as well as any other
requirements that the Registrar may introduce from time to time, should be fully
complied with in terms of the provisions of the Insurance Act and Regulations.

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Agents
A person wishing to carry on business as an insurance agent shall have suitable
qualifications and experience in the insurance business of the class or classes of business
which that person wishes to transact on behalf of an insurer or broker.
An insurer or broker wishing to grant a person an agency shall apply to the registrar in
terms of section 19(3) of the Act of his intention in writing.
The application must be accompanied by:
1.
2.
3.
4.
5.
6.

The curriculum vitae of the applicant;

The educational qualification and work experience of that person;
The identity number of that person;
The name address and telephone number of the previous two employers of that
person and
A copy of the agreement between the insurer or broker and that person.
Statement of character of the principal (creditability and police clearance)

An insurer or broker must notify the Registrar when an agent ceases to represent or
transact on behalf of the insurer or broker.

___________________
SANDILE DLAMINI
REGISTRAR OF INSURANCE AND RETIREMENT FUNDS

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Appendix D Requirements for Corporate Agents and Main

Representatives

Requirements for Registration of Corporate Agents and Main

Representatives
In order to apply for a licence as a corporate insurance agent in Swaziland, the following
requirements are applicable:
An insurer or broker wishing to grant a corporate entity an agency shall apply in writing,
to the Registrar of Insurance and Retirement Funds in terms of Section 19 of the
Insurance Act for registration of that entity as their agent.
An agent shall act only as an Insurance agent for an insurer or broker mentioned in their
certificate of registration and shall operate under the terms and conditions of that insurer
or broker as approved by the Registrar of Insurance and Retirement Funds.
Apply for the approval of the agency agreement in terms of Section 19(3) of the Act.

The application must be accompanied by:

1.

The memorandum and articles of association of the corporate agent.

2.

The companys certificate of incorporation.

3.

Indicate persons who have shareholding in the company and the number of shares
held.

4.

Name and addresses of significant shareholders.

5.

C.V. of the main representative/ CEO including educational qualifications and

work experience of that person.

6.

Police clearances of directors and principal representative.

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7.

A sworn statement of character of the Principal Representative.

8.

Statement of the physical and contact details of the corporate agent.

9.

Indicate the categories of insurance the agent is to sell on behalf of the insurer or
broker.

10.

An agency agreement between the principal and the corporate agent.

11.

Fidelity guarantee cover equal to 20% of expected premium to be collected in any

financial year and shall not be less than E 50,000.

12.

Payment of non refundable application fee of E 1000.00 and E 500.00 registration

fee.

13.

Application for the approval of an auditor.

14.

Recent audited financial statements of the corporate agent.

15.

State any other businesses in which the agent has an interest.

16.

Submit policies and procedures to be instituted that will ensure the separation of
collected premiums from other corporate funds.

17.

Indicate agreed period in which premiums are to be transferred to principal.

In the event, the corporate agent has agency agreements with more than one insurer or
broker, the agreement must be for different types of products and application for
registration must be submitted individually by each insurer or broker seeking to secure
the services of the corporate agent.

___________________
SANDILE DLAMINI
REGISTRAR OF INSURANCE AND RETIREMENT FUNDS

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Appendix E - Insurers Application Checklist

Insurers Application Checklist
STAPLE THIS CHECKLIST ONTO THE FILE AND MAKE A TICK(X) WHEN THE
PIECE OF INFORMATION IS MADE AVAILABLE IN THE APPLICATION
Item Description

Provided?
(X)

1.

List of classes of insurance business to be underwritten

2.

A certified copy of a certificate of incorporation as a public

company together with an authenticated copy of the memorandum
and articles of association of the company

3.

A statement of proof of physical address of the principal office,

being the premises where the business is going to be conducted.

4.

A statement of appointed bankers of the company as well as proof

and details of the companys trust account.

5.

A statement (Business plan) showing:

a.
b.
c.
d.
e.

The proposed underwriting policy of the company

Particulars of proposed reinsurance arrangements
The basis of premium rates
The company's investment strategy
Proof of paid up share capital

6.

A certificate by an actuary certifying the financial soundness of the

company's intended business plan. (Valuators name, address,
professional qualification and experience must be furnished in the
statement)

7.

The business Corporate Governance strategy

8.

The business risk management strategy

9.

Audited financial statements in respect of the applicants last

preceding financial year if the applicant is already conducting
insurance business.

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Item Description

Provided?
(X)

10.

Application for approval to use an abbreviated name for the

company accompanied by the approval of the Registrar General of
the exclusive use of the name.

11.

Application for approval of an Auditor.

12.

Application for approval of a Valuator (Valuators name, address,

professional qualification and experience must be furnished in the
statement)

13.

Application fee and

14.

Registration fees

15.

A list of the persons who are shareholders of the company showing

each persons interest in the company.

16.

Proof of repatriation or repatriation plan of all policy contracts

written in Swaziland on or before the commencement of this Act, to
the new Company. This should include the policy book as well as
assets related to such book.

17.

In addition, we require the following details of all shareholders,

directors and principal representative:
Name, address, nationality and country of permanent residence

a.
b.

Qualifications, work experience and other professional and/or

business interest

c.

Full details of reputation and character (credit worthiness,

bankruptcy, fraud, dishonesty, insolvency, disqualification as a
director, etc.)

d.

Professional and work conduct (dismissals, disciplinary actions,

litigation, etc.)

e.

Foreign insurance companies should also provide a list of countries

in which the applicant carries on business as an insurer and a
certificate by the regulatory authority
.

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Item Description
18.

Provided?
(X)

The central administration of policies, contracts and underwriting

should be situated in Swaziland as well as the full management of
operations should rest with the local principal representative and
Board.

Name of officer handling the file:...................................

Date:........................................................................................................................................

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Appendix F - Brokers and Agents Application Checklist

Brokers and Agents Application Checklist
STAPLE THIS CHECKLIST ONTO THE FILE AND MAKE A TICK(X) WHEN THE
PIECE OF INFORMATION IS MADE AVAILABLE IN THE APPLICATION

BROKER
Item Description

Provided?
(X)

1.

An application letter requesting approval for a licence

2.

Indicate the type of insurance business you seek to market (shortterm insurance and/or long-term insurance).

3.

Types of classes of insurance business that will be marketed

4.

Authenticated proof that the business is registered in Swaziland

(certificate of incorporation and memorandum and articles of
association)

5.

A statement of the address of the company's physical office in

Swaziland.

6.

Curriculum vitae of the company's chairman, other directors and the

principal representative

7.

A statement with full details of applicants reputation and character

(credit worthiness, bankruptcy, fraud, dishonesty, disqualification
as a director, insolvency)

8.

A statement of professional and work conduct (dismissals,

disciplinary actions, litigation, etc.)

9.

In case of shareholders, a statement that includes but is not limited

to difficult economic situation, involvement in illegal transactions
such as money laundering

10.

Police clearance certificate of all directors and principal

representative.

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Item Description

Provided?
(X)

11.

Details of Trust Account

12.

Risk management strategy

13.

Corporate Governance strategy.

14.

List of countries in which the applicant carries on business as a

broker and a certificate by the regulatory authority of such country
indicating whether the applicant has consistently complied and is
complying with the law in each country

15.

Proof of guarantee ceded to the registrar in the form of either:

a.
b.
c.

Fidelity insurance cover,

Securities issued by the Government of Swaziland,
Guarantee issued by a licensed bank or financial institution in terms
of the Financial Institutions Act of 2005 or
Deposit with the Registrar an amount to be deposited into the
Benefit Trust Fund in terms of section 43 of the Insurance Act,
2005

d.

The guarantee amount should be equal to at least 20% of the expected premium that the
broker expects to collect on behalf of the insurers in his next financial year and shall not
be less than E50, 000.00.
16.

Proof of professional indemnity insurance of E2, 000,000.00.

17.

Application fee of E1, 000.00 and registration fee of E2, 000.00

18.

Enclose a list of the persons who have an interest in the company

and also their percentage interest (share certificates).

19.

Enclose a declaration from each member of the board stating that

they are unaware of any reason that might lead to the registrar
refusing to approve registration in terms of section 16 of the
Insurance Act

20.

Audited financial statements in respect of the applicants last

preceding financial year if the applicant is already conducting
insurance business.

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21.

Financial projections for three years (indicating total expected

premiums to be collected) of the business.

22.

Application for approval of the use of the abbreviated name which

should be accompanied by a statement from the Registrar Generals
Office confirming the exclusivity of the proposed name.

23.

A declaration that the company has not entered into any agreement
with an insurer giving the insurer preference in the placing of
insurance business and shall not in future enter into such an
agreement.

24.

The central administration of policies should be situated in

Swaziland and not be outsourced to any institution outside
Swaziland.

Name of officer handling the file:...................................

Date:........................................................................................................................................

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Appendix G - Individual Agent Checklist

Individual Agent Checklist
STAPLE THIS CHECKLIST ONTO THE FILE AND MAKE A TICK(X) WHEN THE
PIECE OF INFORMATION IS MADE AVAILABLE IN THE APPLICATION
A person wishing to carry on business as an insurance agent shall have suitable
qualifications and experience in the insurance business of the class or classes of business
which that person wishes to transact on behalf of an insurer or broker.
Item Description

Provided?
(X)

1.

An insurer or broker wishing to grant a person an agency shall

apply to the registrar in terms of section 19 of the Act of his
intention in writing.

2.

The application must be accompanied by:

a.

The curriculum vitae of the applicant;

b.

The educational qualification and work experience of that person;

c.

The identity number of that person

d.

The name address and telephone number of the previous two

employers of that person and

e.

A copy of the agreement between the insurer or broker and that

person.

f.

Statement of character of the principal (creditability and police

clearance)

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An insurer or broker must notify the Registrar when an agent ceases to represent or
transact on behalf of the insurer or broker.

Name of officer handling the file:...................................

Date:........................................................................................................................................

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Appendix H - Corporate Agents and Main Representatives

Checklist
Corporate Agents and Main Representatives Checklist
STAPLE THIS CHECKLIST ONTO THE FILE AND MAKE A TICK(X) WHEN THE
PIECE OF INFORMATION IS MADE AVAILABLE IN THE APPLICATION
In order to apply for a licence as a corporate insurance agent in Swaziland, the following
requirements are applicable:
Item Description

Provided?
(X)

1.

An insurer or broker wishing to grant a corporate entity an agency

shall apply in writing, to the Registrar of Insurance and Retirement
Funds in terms of Section 19 of the Insurance Act for registration of
that entity as their agent

2.

An agent shall act only as an Insurance agent for an insurer or

broker mentioned in their certificate of registration and shall operate
under the terms and conditions of that insurer or broker as approved
by the Registrar of Insurance and Retirement Funds.

3.

Apply for the approval of the agency agreement in terms of Section

19(3) of the Act

4.

Indicate the categories of insurance the agent is to sell on behalf of

the insurer or broker

5.

The application must be accompanied by

a.

The memorandum and articles of association of the corporate agent

b.

The companys certificate of incorporation

c.

Indicate persons who have shareholding in the company and the

number of shares held.

d.

Name and addresses of significant shareholders

e.

C.V. of the main representative/ CEO including educational

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Item Description

Provided?
(X)

qualifications and work experience of that person.

f.

Police clearances of directors and principal representative.

g.

A sworn statement of character of the Principal Representative

h.

Statement of the physical and contact details of the corporate agent

i.

An agency agreement between the principal and the corporate

agent.

j.

Fidelity guarantee cover equal to 20% of expected premium to be

collected in any financial year and shall not be less than E 50,000.

k.

Payment of non refundable application fee of E 1000.00 and E

500.00 registration fee.

l.

Application for the approval of an auditor.

m.

Recent audited financial statements of the corporate agent.

n.

State any other businesses in which the agent has an interest.

o.

Submit policies and procedures to be instituted that will ensure the

separation of collected premiums from other corporate funds.

p.

Indicate agreed period in which premiums are to be transferred to

principal.

q.

In the event, the corporate agent has agency agreements with more
than one insurer or broker, the agreement must be for different
types of products and application for registration must be submitted
individually by each insurer or broker seeking to secure the services
of the corporate agent.

Name of officer handling the file:...................................

Date:........................................................................................................................................

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Appendix I - Criteria for Analysing Application

Criteria for Analysing Application
Legal form of the company
Applicants must be registered locally as a company under the Companys Act, 1912, with
the main object of the company being that of carrying on business, that is of an insurance
nature for insurer, that of an insurance broker and that of an insurance agency for
Corporate agents.
Control and ownership of the entity
For insurers, a licence will be considered if an applicant meets the requirements of
section 7 of the Act in terms of the ownership and control at the time of the application.
For insurance brokers, a licence will be considered if the applicant meets the
requirements of section 17 of the Act in terms of the ownership and control at the time of
application.
For Corporate Agents, a licence will be considered if an applicant meets the requirements
of section 19 of the Act and for purposes section 19(1) registration of the company in
terms of the Companys Act, 1912 will be sufficient to fulfil this requirement.
Financial viability and strength
Insurers must demonstrate long term financial viability, prudent risk management and
claims reserving, underwriting policies and have access to sufficient financial resources
to meet its liabilities.
Brokers and corporate agents should also display long term financial viability and
prudent risk management.
Entities must also have the appropriate insurance covers in place to protect the entity
against theft by its employees and the dispensing of inappropriate advice to clients which
may result in financial losses suffered by the clients.
RIRF must be satisfied that insurers comply with minimum capital requirements as stated
in the Act. Both insurers and brokers must submit a strong business plan in support of
their operations.

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Suitability of key employees

The suitability of shareholders, directors, principal representatives and senior
management are examined in light of a fit and proper test (Appendices J; K and L).
Service delivery
An applicant must demonstrate that it has the necessary infrastructure and resources
required to meet its obligations under the Act and to comply with the regulations,
directives and guidelines issued by RIRF from time to time.
Corporate governance strategy
Corporate governance refers to the framework by which the Board and Senior
Management of institutions are held accountable for the operations of the organizations
they oversee. The strategy must therefore indicate that:
It encompasses mechanisms, structures and processes that enable the Board of Directors
to set policies and objectives of the institution monitor and evaluate its performance and
take corrective action on time.
It encourages transparency, fairness and balance in the relationships among management,
the Board, shareholders, Regulator and other stakeholders;
The Board of Directors and Senior Management are fully cognizant of the need to adopt
sound principles and practices for the internal governance of the company.
The risk management activities of the institution are independent, accorded high priority
and reviewed periodically;
A system to comply with legal and regulatory obligations is in place.
Measures are in place to ensure accountability and transparency in operations;
It incorporates the need for the constant review of policies and procedures to ensure
relevance as corporate governance policies evolve.
Risk management strategy
The risk management function provides independent oversight of the management of
risks inherent in the organisations activities. The strategy must therefore demonstrate the
presence of processes that will:
1.

Identify current and emerging risks;

2.

Develop risk assessment and measurement systems;

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3.

Establish policies, practices and internal control mechanisms that will be utilized
in the management of identified risks;

4.

Develop risk tolerance limits for Senior Management and Board approval;

5.

Monitor positions against approved risk tolerance limits and report results of risk
monitoring to Senior Management and the Board.

6.

The insurer must demonstrate its awareness of potential risks that it is exposed to
and how this identified risk will be managed.

7.

Strategy must address the companys:

sensitivity of its earnings to potential changes in circumstances
whether returns are appropriate for the level of risk it has assumed
its ability in times of stress to meet obligations and provide a return on investment.
does the strategy cover policy on assessment, approval and payment of claims.

a)
b)
c)
d)

Investment strategy
1.
Does the strategy achieve maximum asset allocation?
2.

Are placements in compliance with investment requirements as stipulated in the

Act and regulations?

3.

Does the strategy ensure appropriate matching of assets to liabilities incurred?

4.

Will the implementation of the strategy be in-house or out-sourced?

5.

Investments must be done in the most cost effective manner.

Professional indemnity and Fidelity Guarantee

1.
Check sufficiency in accordance with the Act and Regulations
2.

Check the term of each policy and expiry date.

3.

Check if the insured is actually the applicant

4.

Check the conditions of the policy with focus on exclusions mentioned therein.

Reinsurance arrangements (Insurers)

Check if there are any reinsurance arrangements in place, including the types of treaties
entered into and any special conditions arising from these treaties.
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Appendix J - Fit and Proper Test (Criteria) for Chairman/ Chief

Executive/Board of Directors of an Insurance Company
Fit and Proper Test (Criteria) for Chairman/Chief Executive/Board of
Directors of an Insurance Company
Directors and/or senior managers of insurance companies must furnish proof of their
professional qualifications and personal good repute by providing, for instance,
certificates, details of their professional career, information on membership in
professional bodies etc.
Criteria for assessing fitness and propriety of directors, chairman/chief executive of an
insurance company are outlined under three captions as follows:
1.
2.
3.

Honesty, integrity and reputation

Competence and capability
Financial soundness

Chairman/ president/ chief executive and directors will be gauged against these criteria to
provide a basis for the decision by the Registrar as to whether or not the promoters have
the capacity to act as an insurer under the Insurance Act 2005.
Honesty, Integrity and Reputation
In determining a persons honesty, integrity and reputation, the office of the Registrar
will have regard to matters including, but not limited to those set out below. The
Registrar should be informed of these matters and will treat each application on a case by
case basis, taking into consideration the seriousness of, and circumstances surrounding
the offence, the explanation offered by the convicted person, the relevance of the
proposed offence to the proposed role, the passage of time since the offence was
committed and evidence of the individuals rehabilitation.
Honesty, integrity and fairness are qualities that are demonstrated over time. These
attributes demand a disciplined, on-going commitment to high standards of behaviour and
honesty.
The
promoters
of
an
insurance
company
while
selecting/recommending/appointing a person as a Board Member shall ensure that the
person:
a) Has not been convicted in any criminal offence, involved in any fraud/forgery,
financial crime, embezzlement, money laundering, etc
b) Has not been associated with any illegal activity especially relating to financial
sector
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c) Has not been in default of payment of dues owed to any financial institution and /
or default in payment of any taxes in an individual capacity or as Proprietor of a
business, partner in a partnership firm, director, chairman, president or Chief
Executive in any private or public limited company which has defaulted in
payment of its dues to financial institutions/tax authorities.
d) Has not been subject to any adverse findings or any settlement in civil/criminal
proceedings particularly with regard to investments, financial/business
misconduct, fraud, information or management of a corporate body etc.
e) Has not contravened any of the requirements of financial regulatory system or the
equivalent standards of requirements of other regulatory authorities, stock
exchanges, professional bodies or government bodies
f) Has not been involved with a company/firm or other organisation that has been
refused registration, authorization, membership or licence to carry on trade,
business or profession, or has had that registration, authorization, membership or
licence revoked, withdrawn or terminated.
g) Has not been refused the right to carry on trade, business or profession as a result
of the removal of relevant licence, registration or other authority.
h) Has not been a director, partner or concerned in the management or
administration of a business that has gone into insolvency or involuntary
liquidation, while the person has been connected with that organization or within
one year of that connection
i) Has not been debarred from being Chief Executive, Chairman or Director of a
company
j) Has not been dismissed, or asked to resign from employment or from a position of
trust, fiduciary appointment or similar and
Competence and capability
The Directors on the board of an insurance company:
a) should be individuals having management/business experience of at least five
years at a senior level in an active capacity
b) should be professionally qualified. Professional qualification requires theoretical
and practical knowledge in insurance as well as managerial experience. These
requirements would be deemed met if an activity of several years for an insurance
company of the same kind and size can be proven. Expert knowledge in the field
of banking, mutual funds, accounting, internal audit, law and IT etc may also be
considered if the person concerned has occupied a managerial post.
c) should not be minors or of unsound mind and
d) should have their names borne on the register of national tax payers except where
such person is a non-resident

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The Chief Executive must demonstrate his competence and ability to understand the
technical requirements of the business, inherent risks and management processes required
to conduct its operations effectively, with due regard to the interests of all stakeholders.
In determining competence, and capability of the Chief Executive, the Registrar shall
take into account all relevant considerations including, but not limited to:
a) whether the person has demonstrated, through his qualifications and experience,
the capacity to successfully undertake the cognate responsibilities of the position
b) whether the person has ever been diagnosed as being mentally ill or unstable
c) whether the person has ever been disciplined by a professional, trade or regulatory
body, or dismissed or requested to resign from any position or office for
negligence, incompetence or mismanagement; and
d) whether the person has a sound knowledge of the business and responsibilities
and responsibilities he/she will be called upon to shoulder.
Financial Soundness
In determining a persons financial soundness, the Registrar will consider all relevant
factors, including but not limited to:
a) whether the person has been associated with any illegal activity specially relating
to life assurance, mutual funds, banking or other financial sector business.
b) whether the person has been in default of payment of dues owed to any financial
institution and/or default in payment of any taxes in an individual firm or in any
private unlisted and listed company.
c) whether the person has made any arrangements or composition with his creditors,
filed for bankruptcy, been adjudged bankrupt, had assets sequestrated, or been
involved in proceedings relating to any of these
d) whether the person has been declared a defaulter of a stock exchange
Prior clearance
The insurance company shall submit the information about the Board Members,
Chairman/Chief Executive, to the Registrar for clearance at the time of applying for
registration.

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Appendix K - Fit and Proper Test for Appointment of Key

Employees of an Insurance Company
An insurance company or applicant for registration as a person authorised to carry on
insurance business would observe the guidelines in the Fit and Proper Test for
appointment of key employees particularly those having the following responsibilities:
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)

Head of operations
Chief Financial Officer
Members of the Underwriting Committee
Members of the Claim Settlement Committee
Members of the Reinsurance Committee
Members of the Investment Committee
Head of Actuary (life insurers only)
Head of Internal Audit
Head of Information Systems and Technology
Head of Sales/Marketing Department

It is the responsibility of the Board of Directors to make sure that the aforementioned
appointments are made in strict compliance with the Fit and Proper Test. Even though
prior approval by the Registrar is not required, the companies shall report brief
information of such appointments at the time of registration as an insurer or as and when
made for information and record within 7 days from date of joining the company.
In case it is found during the course of an inspection that guidelines of the Fit and Proper
Test have not been followed or the incumbent is not a fit and proper person for the
position, strict punitive action will be taken under the relevant provisions of the Insurance
Act 2005, in addition to directing the company to dispense of the services of the
concerned officer if recently recruited or in the case of an existing employee, the officer
to be transferred from the post immediately.
Fit and Proper Test
Honesty, Integrity and Reputation
a) He/she has not been convicted of any criminal offence, particularly offences of
dishonesty, fraud, financial crime or other offences under legislation relating to
banking and financial services
b) He/she has not been subject of any adverse findings or any settlement in
civil/criminal proceedings particularly with regard to investments,

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financial/business, misconduct, fraud, formation or management of a body

corporate etc.
c) He/she has not contravened any of the requirements and standards of regulatory
system or the equivalent standards of requirements of other regulatory authorities,
which would adversely reflect on the above areas.
Competence and Capability
He/she must have adequate professional qualifications and experience commensurate to
the job as determined by the Insurance Company
Track Record
a) He/she has not been removed/dismissed in the capacity of an employee,
director/chairman on account of financial frauds, moral turpitude, misconduct and
misappropriation of funds
b) No material adverse reports, from past employers of the person being considered
for the key executive post.
Financial soundness
He/she has not been in default of payment of dues owed to any financial institution
and/or has not been declared as defaulter in payment of any taxes in individual capacity
or as proprietary concern.
Conflict of Interest
He/she does not head more than one functional area that give rise to conflict of interest
within the organization. For example the departments of audit and accounts cannot be
headed by the same person.

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Appendix L- Assessment of Financial Statements / Business

Plan
What To Look For When Assessing Financial Statements:
1.
2.

3.
4.

Check the title for correctness of name of entity being assessed and financial year
under review,
Calculate relevant ratios e.g. expense ratio to determine the trend in companys
expenses, solvency ratio to determine compliance with stipulated minimums,
liquidity ratios to determine whether the company would have enough resources
available to meet liabilities when they fall due, claims ratio and profitability ratios,
to determine the trend in claims logged and paid as well as to determine the
reason for profitability or not of the company.
Check Auditors opinion and reasons for qualification of statements.
Are the auditors approved in terms of the Act?

What To Look For When Assessing A Business Plan:

1.

Check for completeness of the plan in terms of content e.g. description of

business, marketing strategy, product offering, management structure, financial
plan, projections of income, cash-flow, risk management strategy etc

2.

Assess the realism of the plan in terms of availability of market, has the market
been tested, how great is the need for the product in the market, is the product the
first of its kind or is there a similar product already in the market, what is the
existing demand for the product, presence of competitors, any competitive
advantage identified for the company e.g. product offering and placement of the
company.

3.

Assess the viability of the plan in terms of availability of start up capital, is there a
return on investment envisaged and its magnitude, can an appropriate site be
obtained, any legal problems that need to be dealt with, is the business seasonal or
not, can sufficient working capital be easily obtained, what are the sources of
financing, are sufficient human resources available, are there any specialised
skills needed.

4.

Does the corporate governance strategy include the creation or ongoing

monitoring systems of checks and balances to ensure a balanced exercise of
power within the company, compliance with legal and regulatory obligations, the
identification and management of risks that are a threat to the companys
continued existence and the development of practices which make and keep the
company accountable to the broader society in which it operates.

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References:
1.
Insurance Act, No. 7, of 2005
2.
King Report on Corporate Governance for South Africa, 2002
3.
Fit and Proper Guideline, Central Bank of Trinidad and Tobago, 2005
4.
IAIS Core Principles

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