Non-admitted insurance: Prohibited unless coverage/capacity is not locally available, and then only with permission of the authorities.

Premium tax paid by insured: There are no premium taxes payable by the insured, although insurance premiums are subject to value added tax at the rate of 14%.

Regulator: The Financial Services Board (FSB) regulates the insurance industry in South Africa.

Overview: A new consumer protection law is due to take effect in 2010, which will significantly extend liability for retailers, manufacturers and distributors. This should be factored into liability insurance purchased for the region, and buyers should review the adequacy of their limits.

Overall risk rating: medium