SSP Brochure:Layout 1 - INSETA

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The scarce skills identified in the Study of Scarce Skills in the Insurance sector in 2007 have been filled into the DoL template and is attachedas Annexure E to this SSP. Scarce skills have been identified at the most detailed occupational level. It must, however, be noted that inmatching the occupational titles generally used in the insurance sector with the occupations specified in the OFO the OFO was found lackingin many respects. Version 6 of the OFO was used to identify the scarce skills in Annexure E. While this version of the OFO made betterprovision for occupational titles generally used in the insurance sector than earlier versions, it is still difficult to identify scarce skills at themost detailed occupational level. For example, underwriters were classified as Insurance agents/sales consultants (611201), while the sectordistinguishes between the two occupations in reporting on scarce skills.Critical skills have been identified for broader occupational groups and are attached as Annexure F.4.4 ConclusionsThe research on scarce skills presented in this chapter indicates that the industry has experienced shortages of professionals and managerswith insurance experience and the appropriate qualifications. These shortages are, however, not general shortages in the market but aredirectly related to the impact of new legislation to change the racial profile and increase educational standards in the sector. Because largeorganisations’ (50 or more employees) employment equity are monitored they are more affected by the scarcity of black skills than smallorganisations (with less than 50 employees).As mentioned in Chapter 3, output from the tertiary institutions in the general field of business, commerce and management sciences hasgrown substantially over the last five years and the racial profile of graduates from this sector is changing rapidly. However, the insurancesector competes for skills with the rest of the financial services sector and with business and commerce in general. The insurance sectoris not the sector of choice for many graduates due to a lack of knowledge about the sector and the over-regulation of the sector which,among other things, makes it too risky to start new brokerages.The critical skills or skills gaps in the current workforce can be seen in management and leadership, sales and marketing, basic and advancedcomputer work, industry and product knowledge, communication, knowledge of legislation and basic financial skills.INSETA Sector Skills Plan - page 39
5 SMALL BUSINESS AND ENTREPRENEURIAL OPPORTUNITIES AND OTHERNSDS PRIORITIES5.1 IntroductionThis chapter deals with a number of focal areas of the National Skills Development Strategy (NSDS) to which the SETAs will be attendingin the period covered by this SSP. These areas include small business and entrepreneurial opportunities, support to small levy paying andnon-levy paying firms, adult basic education and training, the promotion of national standards of good practice and stakeholder capacitybuilding.5.2 Small business and entrepreneurial opportunitiesThe NSDS for 2005 to 2010 places strong emphasis on small business development and the cultivation of skills necessary to start andmaintain new businesses. SETAs are specifically required to develop skills development strategies in support of new small businesses andtherefore this SSP contains an analysis of the possible small business opportunities that may exist in the sector.Small business opportunities were identified by the professional and industry bodies that participated in the SSP development process in2005 and 2007. Table 5-1 below summarises small business opportunities in specific subsectors and the relevant occupations, as well asthe skills, training and other requirements needed in order to benefit from these opportunities. Because the insurance industry is complexand highly regulated, the respondents 62 believed that entrepreneurs intending to start SMMEs in the sector will require advanced technicalqualifications and industry-related practical skills to succeed in new business ventures. In certain of the subsectors, such as reinsurance andcollective investments, considerable capital is needed to enter the market. 63 The area that is most suitable for the training and developmentof new entrants to the labour market (i.e. unemployed young people) is the intermediary subsector.Table 5.1 Summary of small business development opportunities in the insurance industrySmall business opportunity Subsector Skills and training needs Other requirementsFranchises of insuranceservices (branch offices oflife offices are franchisedand operated as separatebusinesses)Long term • Business and financial management skills• Technical insurance industry knowledge and practical experience (notmerely textbook knowledge)• People management skills• Marketing and selling skills• Customer service skills• IT and computer skills• Start-up capital• Office infrastructure• Business systems• Skilled human resourcesOutsourcing of specialisedunderwriting in short-termand reinsurance industryIntermediaries and brokersto serve the emergingmarketAdministration serviceswith specialised back officestaff with relevant industryexperience (“in”-sourcingof specialisedadministration services)Short termReinsuranceShort termLong termMedicalinsuranceShort termLong termIntermediariesCollectiveinvestmentsMedicalinsurance• Technical insurance industry knowledge and practical experience• Specialised risk assessment skills in relation to the activity or entity tobe insured• Risk management skills• Business and financial management skills• People management skills• IT and computer skills• Business and financial management skills• Technical insurance industry knowledge and practical experience• Entrepreneurial skills• People management skills• Marketing, selling and customer service skills• Language and communication skills to service emerging market• Understanding of needs of emerging market and cultural barriers toinsurance products• General office and practice management skills• Relevant technical insurance industry knowledge and practicalexperience (not merely textbook knowledge)• Customer management skills• Accounting, bookkeeping and financial record-keeping skills• Knowledge of tax laws• Knowledge of relevant legislation and industry practice codes• Entrepreneurial skills• Business and financial management skills• IT and computer skills• Start-up capital• Office infrastructure• Business systems• Skilled human resources• Start-up capital• Office infrastructure• Business systems• Skilled human resources• Start-up capital• Business systems• Skilled human resources62 Professional and industry bodies who participated in the 2005 update process.63 According to the South African Reinsurance Offices Association, a new reinsurer will require at least R80 million in start-up capital, and the Association of Collective Investmentsestimates that a potential new unit trust manager will require at least R50 million in start-up investment funds.INSETA Sector Skills Plan - page 40
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 20 and 21: Figure 1-6 Trends in net premium in
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 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

SSP Brochure:Layout 1 - INSETA

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