SSP Brochure:Layout 1 - INSETA

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Figure 1-6 Trends in net premium incomes of link investment insurers*: years ended 31 December 2001-2006*Link investment insurers are those insurers who underwrite policies whereby the value of the policy is directly linked to the value of the assets invested in, and no guaranteesoffered.** 2000 values calculated by using the CPISources: Financial Services Board, Special report on the results of the long-term insurance Industry for the periods ended December 2004, (15 February 2005), December2005 (15 February 2006) December 2006 (15 February 2007).Figure 1-7 Trends in net premium incomes of assistance insurers*: years ended 31 December 2001-2006*Assistance insurers are those insurers who offer life policies where the sum assured does not exceed R10 000 (mainly funeral policies).** 2000 values calculated by using the CPISources: Financial Services Board, Special report on the results of the long-term insurance Industry for the periods ended December 2004, (15 February 2005), December2005 (15 February 2006) December 2006 (15 February 2007).The negative growth in premium income over the period 2001 to 2004 can be attributed to various factors:• Increasing competition from banks and other forms of investment (offshore companies, property investments, etc.).• Increasing competition for the consumer’s disposable income.• Poor investment returns.• The negative publicity and loss of consumer confidence.• The recovery of the sector in 2005 and 2006 could, at least in part be ascribed to recent improvements in equity markets thatrekindled support for the long-term subsector.Short-term insuranceThe short-term subsector experienced a decline in real premium income between 1999 and 2001. However, from 2002 to 2006,the subsector experienced a turnaround with growth in premiums and improved underwriting results (Figure 1.8). Despite thisimprovement, the subsector is still hampered by• poor investment returns – although this has recently improved owing to growth in the equity market;<strong>INSETA</strong> Sector Skills Plan - page 9
• increasing reinsurance rates;• increasing competition between brokers and direct distribution channels;• legislation that is causing higher direct compliance costs.Figure 1-8 Trends in premium incomes and benefits paid by short-term insurers: years ended 31 December 1999-2006** 2000 values calculated by using the CPI.Sources: Financial Services Board, Special report on the results of the long-term insurance Industry for the periods ended December 2004, (15 February 2005), December2005 (15 February 2006) December 2006 (15 February 2007).ReinsuranceReinsurers are generally international companies that tend to consider reinsurance issues globally. The reinsurance industry grew priorto 2003 and stabilised between 2003 and 2004. Growth before 2003 can be ascribed to growth in the insurance industry. Since 2003,the insurance companies have reassessed the manner in which they employ capital. A move is discernible towards greater capitalretention rather than passing capital on to reinsurers. The companies have moved from proportional reinsurance to non-proportionalreinsurance to retain more premium and to absorb more of the initial risks and losses themselves. Further growth in the reinsurancesector is expected in the life subsector, but the non-life subsector will probably remain static. The size of the portfolios will likelyincrease in the life subsector, but this will not necessarily mean that more employees will be needed. The larger portfolios will bemanaged with current staff numbers and greater use of technology. 30Collective investmentsThe collective investments subsector is a high-growth area in the insurance industry. The number of investment schemes in securitiesincreased from 156 in 1998 to 718 in 2006, and the assets under management increased from R78 billion in 1998 to R459 billion in2006 (Figure 1.9). Growth in investment schemes in property was equally impressive (Figure 1.10). The total market capitalisationof these funds increased from R 4.2 billion in 2000 to R 17.0 billion in 2006.30 Opinion expressed by SAROA in a personal interview.<strong>INSETA</strong> Sector Skills Plan - page 10
Page 5 and 6: Table 4.4 Scarce skills: clerical a
Page 7: EXECUTIVE SUMMARYBackground and met
Page 10 and 11: How the INSETA addressed Scarce and
Page 12 and 13: 1 PROFILE OF THE SECTORThe insuranc
Page 14 and 15: Table 1.4 Other activities of organ
Page 16 and 17: A major problem in estimating the n
Page 18 and 19: • The fact that the industry has
Page 22 and 23: Figure 1-9 Trends in collective inv
Page 24 and 25: additional staff. The technology al
Page 26 and 27: 2 THE DEMAND FOR SKILLS IN THE SECT
Page 28 and 29: 2.3 Employment trends2.3.1 Changes
Page 30 and 31: Competition from other financial se
Page 32 and 33: 3 THE SUPPLY OF SKILLS TO THE SECTO
Page 34 and 35: Table 3.2 Population group distribu
Page 36 and 37: Figure 3-4 Senior Certificate passe
Page 38 and 39: Table 3.7 Qualifications awarded by
Page 40 and 41: 3.3.3 Further education and trainin
Page 42 and 43: Table 3.13 People to be trained in
Page 44 and 45: • The racial profile of graduates
Page 46 and 47: OccupationPosts difficult to fillSp
Page 48 and 49: Table 4.5 Scarce skills: sales occu
Page 50 and 51: The scarce skills identified in the
Page 52 and 53: Small business opportunity Subsecto
Page 54 and 55: 5.7 ConclusionsThis last chapter ou
Page 56 and 57: ANNEXURE APROFESSIONAL BODIES INTER
Page 58 and 59: Core component of BEE Indicators Ta
Page 60 and 61: Senior managementBlackMaleTOTAL MAN
Page 62 and 63: ANNEXURE ESCARCE SKILLS IN THE INSU
Page 64 and 65: OCCUPATION level ss Specialisation/
Page 66 and 67: OCCUPATION level ss Specialisation/
Page 68 and 69: ANNEXURE FCRITICAL SKILLS NEEDED IN
Page 70 and 71:
OCCUPATION level ss52 Personal Assi
Page 72 and 73:
ANNEXURE GINSETA BUSINESS PLANINSET
Page 74:
The DoL requires all Councils to un
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