Reading Time: < 1 minute

Insurance News

In March 2026, the NCR issued a circular of their interpretation of Regulation 3(1) of the Final Credit Life Insurance Regulations 2017 and how it interacts with Section 106 of the Act.

The NCR have said that when credit providers add credit life insurance (CLI) to client accounts, they need to, from time to time, closely review and update (probably reduce) the amount charged.

The NCR say that credit providers and insurers must make sure the cover matches the consumer’s actual need and current risk. The circular also says that the insurance portion should never match what the consumer still needs to pay on the credit. The NCR have said they are going to be monitoring these things.

Few insurance providers can easily review the clients risk profile on an ongoing basis so this is seldom ever done at present. Many credit providers and insurance providers will now have to review their processes and figure out exactly how to do this.

Debt Counsellors should also keep this in mind when clients do credit life replacement.