Those in the South African insurance industry doing business in one form or another in the United Kingdom should not forget that the UK’s Economic Crime and Corporate Transparency Act (ECCTA) comes into force on 1 September 2025.
ECCTA creates a “failure to prevent fraud offence” holding companies accountable for fraudulent acts committed by employees or third parties acting on their behalf.
There is no need to show that senior management was aware of or endorsed the fraudulent conduct. Liability is automatic if fraud is committed by someone associated with the business and there were no reasonable procedures in place to prevent that fraud. Ignorance is not itself a defence.
It may justify another look at directors & officers, crime, bond, fidelity, and other policy wording covering persons conducting business in the UK to see if anything needs changing.