Illustrative Regulatory Reports in terms of the Insurance Act

28 April 2022
Auditing and Assurance
South African Accounting Academy

The following reports are for use by registered auditors:

Insurers (solo insurers);
Insurance groups;
Branches of foreign reinsurers; and
Microinsurers.

These illustrative regulatory reports are effective for financial years ending on or after 1 January 2022.

In terms of Section 63 of the Act, the Prudential Authority (PA) may prescribe Prudential Standards on any matter that is required or permitted by the Act. As such, the PA has prescribed Prudential Standards that set out the regulatory framework for assessing the financial soundness of South African insurers, insurance groups, branches of foreign reinsurers and microinsurers (collectively referred to as insurers) from a regulatory perspective. Related to these Prudential Standards, the PA requires regulatory information be submitted using the Quantitative Reporting Templates, for the purposes of ongoing supervision of the insurers.

Furthermore, in terms of Section 47, read with Section 44 of the Act, the insurer must cause the information provided to the PA for regulatory purposes to be audited.

The PA published the Prudential Standards on Audit Requirements for Insurers, Insurance Groups, Branches of Foreign Reinsurers and Microinsurers in December 2021. The Prudential Standards are effective for financial years ending on or after 1 January 2022.

These Prudential Standards specify the information that must be audited in terms of Section 47 of the Act and also require certain information to be reviewed, as set out in Section 44(1), read with 62(1)(c).

Click here to access and download these Illustrative Regulatory Reports:

https://www.irba.co.za/guidance-to-ras/industry-specific-guides-and-regulatory-reports/long-term-and-short-term-insurance-reports

Relevance to Auditors, Independent Reviewers & Accountants:

In terms of Section 47, read with Section 44 of the Act, the insurer must cause the information provided to the PA for regulatory purposes to be audited. The auditor’s responsibility is to provide audit reports in terms of the Insurance Act.
IRBA provides illustrative regulatory reports as guidance to auditors.
As an auditor, you need to consider and comply with International Standards on Auditing, Auditing pronouncements and other Assurance Services, and thus you need knowledge of the format and content that must be contained in your audit report.

Relevance to Your clients:

Only applicable to those clients in the insurance industry.
In terms of Section 47, read with Section 44 of the Act, the insurer must cause the information provided to the PA for regulatory purposes to be audited.

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