What's changed for funeral parlours and funeral insurance

The biggest live change is regulatory, not statutory: the FSCA and the Prudential Authority opened a formal review of how funeral insurance is distributed in South Africa in January 2025, and by September 2025 the FSCA had already taken enforcement action against several funeral parlours for selling policies without the required licences.

Reviewed by TefCo Compliance Research — last verified 15 September 2026.

In short

The FSCA and Prudential Authority launched a joint review of the funeral insurance distribution framework, inviting industry participation from January 2025.
The FSCA secured enforceable undertakings from funeral parlours found to be collecting premiums or paying claims without the required FAIS or Insurance Act licences.
No change was found to the certificate of competence framework under GN R.363 of 2013 or to the 72-hour death notification deadline — those remain the current statutory position.

FSCA and Prudential Authority review of funeral insurance distribution

In January 2025 the FSCA and the Prudential Authority announced a joint review of the regulatory framework governing how funeral insurance is distributed in South Africa, citing concerns raised by both the funeral parlour industry and the regulators themselves about whether the current framework is appropriate and effective. [5](https://www.moneyweb.co.za/news/south-africa/regulators-begin-overhaul-of-funeral-insurance-in-sa/)

Joint Communication 7 of 2024, published by the FSCA and Prudential Authority, set out the current regulatory position, flagged specific industry and regulator concerns, and invited stakeholders — including funeral parlours themselves — to take part in the review project. [4](https://www.resbank.co.za/content/dam/sarb/publications/prudential-authority/pa-public-awareness/covid-19-response/2024/Joint%20Communication%207%20of%202024.pdf)

This review has not concluded with new legislation as at the date of this article. Funeral businesses distributing funeral cover should watch for the outcome rather than assume the current licensing framework will stay unchanged.

The review is ongoing. Do not assume any relaxed or new licensing pathway exists for funeral parlours selling policies until the FSCA and Prudential Authority publish a final framework.

Enforcement against unlicensed funeral policy sales

While the review was underway, the FSCA continued enforcing the existing rules. By September 2025 it had secured undertakings from four funeral homes that had been selling funeral insurance without a licensed underwriter in place — in one case, over R66 million in premiums collected between May 2022 and September 2024 without the required Insurance Act licence behind the product. [3](https://capetimes.co.za/news/2025-09-18-fsca-cracks-down-on-funeral-firms-for-unlicensed-policy-sales/)

The FSCA has also concluded enforceable undertakings under section 151 of the Financial Sector Regulation Act 9 of 2017 against individual funeral parlour operators for the same pattern — collecting premiums and processing claims without an authorised financial services provider licence or a licensed insurer behind the product. [6](https://www2.fsca.co.za/Enforcement-Matters/Lists/Enforcement%20Actions/Attachments/538/Soul%20City%20and%20Amashiba%20Amahle%20Funeral%20signed%20Enforceable%20undertaking.pdf)

What has not changed

No amendment was found to the Regulations Relating to the Management of Human Remains (GN R.363 of 2013) that governs certificates of competence for undertaker's premises and mortuaries, and no change was found to the 72-hour death notification deadline under the Births and Deaths Registration Act 51 of 1992, section 14. Those remain the current baseline to work from.

Frequently asked

Is it now legal for a funeral parlour to underwrite its own policies?

No. The current review has not changed the licensing requirement. A funeral parlour still needs an authorised, licensed insurer behind any funeral policy it sells, and the FSCA has actively enforced against parlours that did not have one.

Where can a funeral parlour confirm whether the FSCA/Prudential Authority review has concluded?

Check the FSCA's own published communications and enforcement pages directly, since the review announced in Joint Communication 7 of 2024 was still open as at the sources reviewed for this article.

Sources

TefCo Corporate Compliance (Pty) Ltd is a compliance management platform, not a legal, tax or advisory firm. This guide is general information, not advice. Fees, dates and thresholds change — confirm current figures with the regulator before you rely on them.