The effect of the Protection of Personal Information Act of 2013 on the short-term insurance industry

Abstract

The value of information has seen a substantial increase in recent years. This is due to the rapid advancements in technology and the expanded digital manner in which society interacts. It is viewed as the cornerstone of successful business and has become a staple of modern society. Personal information in particular has received increased attention. Consequently, it is no wonder that legislative intervention would be sought sooner or later. After many years of uncertainty, the majority of the Protection of Personal Information Act has received executive approval. This Act seeks to regulate the manner in which personal information is processed by providing specific conditions that need to be adhered to and aims to uphold the right to privacy throughout this process. Due to its determinations its reach will be wide and many industries will have to align their practices therewith, but with the effective date of 1 June 2020 having already passed, time is running out to achieve compliance within the one-year grace period. The South African short-term insurance industry, in particular, is a purveyor of vast amounts of personal information. This is used to both provide a service to and assess the risk of a client. As such this industry will most assuredly be affected by the Protection of Personal Information Act. The only question, though, is to what extent this will happen. In considering this question it is necessary to take into account the legislation currently governing this industry as well as the secondary effects of this act as it pertains to the reporting of financial crimes and insurers' relationships with third-party information processors. The regulation of personal information protection at an international level will also play a crucial role.