SSP Brochure:Layout 1 - INSETA

Figure 1-2 Distribution of organisations and employees according to organisation sizeSource: Inseta, Survey of Employment, Scarce and Critical Skills, May 20061.3 Employment in the sector1.3.1 Total number of employeesBased on the survey 8 results, total employment in the sector at the end of 2005 was estimated at 102 000. The employment distributionacross subsectors can be seen in Figure 1-3. Life insurance was by far the largest employer with 36.5% of employees employed in thissubsector. Brokerages or agents employed 21.9% of the workers in the sector and the short-term insurance subsector 14.5% of theworkers.Figure 1-3 Employment distribution according to subsectorSource: Inseta, Survey of Employment, Scarce and Critical Skills, May 2006Estimates of the number of very small and independent intermediaries vary widely. For example, 2006 survey results 9 showed thatapproximately 35 695 financial advisors were working in the insurance sector of whom 9 551 worked for large organisations. The remaining26 144 advisors were classified as external advisors, that is independent intermediaries, or they worked for formal insuranceintermediary/broker companies.Then again, research conducted in 2003 found that more or less 75 000 financial advisors would be affected by the FAIS Act. Of these,23 000 were employees of large organisations and 52 000 were external advisors. 10 In another study undertaken byPriceWaterhouseCoopers in 2004, short-term companies that participated reported that they had 24 280 intermediaries/brokers sellingtheir products while long-term companies reported 26 598. 118 Inseta, Survey of Employment, Scarce and Critical Skills in the Insurances Sector, May 2006.9 Inseta, Survey of Employment, Scarce and Critical Skills in the Insurances Sector, May 200610 Grant Thornton & Prodigy Business Services, Information on Financial Advisors in the South African Insurance Industry. Report presented to the INSETA in November 2003.INSETA Sector Skills Plan - page 4