South Africa’s funeral parlour regulations to be reviewed
The FSCA and PA are reviewing funeral insurance regulations to help funeral parlours better address South Africa’s cultural and economic needs. Workshops are planned for 2025.
Funeral parlours in South Africa are essential in supporting communities during times of grief, but many argue that the industry’s regulations make it difficult to address the distinct cultural and financial needs of those they serve.
As such, the Financial Sector Conduct Authority (FSCA) and Prudential Authority (PA) have launched a review of the laws governing funeral insurance to address these concerns.
In a joint statement, the FSCA and PA acknowledged that the current rules might not be suitable for the funeral parlour industry.
CONCERNS OVER FRAMEWORK
The review comes after both regulators and funeral parlours raised concerns about the “appropriateness of the current regulatory framework,” which struggles to reflect the socio-economic and cultural realities of the sector. According to the FSCA, the existing rules may limit the ability of funeral parlours to cater to vulnerable communities in ways that align with their traditions.
“As small businesses, they also contribute to job creation and sustainable economic growth. Funeral parlours are pillars in their communities, and the services they offer carry immense cultural significance. It is crucial that the rules governing them are fair, inclusive, and protective of the people they serve,” the FSCA and PA said in Joint Communication 7 of 2024.
The FSCA also said that the regulatory review aims to strike a balance between protecting consumers and supporting the businesses that serve them. To make sure that all voices are heard, the FSCA and PA have invited key stakeholders to participate in workshops in 2025. It says that these workshops will give funeral parlours, insurers, and other industry players a platform to share their experiences and propose solutions.
CONSIDERING ALL INTERESTS
“The Authorities want to ensure that any changes to the laws consider the interests of all market participants, including funeral parlours and their customers,” the statement continued.
This consultative process reflects an effort to make the industry more equitable and sustainable. As funeral parlours play a critical role in maintaining cultural traditions and supporting economic growth, the planned reforms could mark a turning point for the industry.
Anyone interested in participating in the workshops can confirm their involvement by sending an email.
The FSCA and PA’s willingness to engage with industry representatives signals hope for a regulatory framework that better aligns with the needs of everyday South Africans.