SSP Brochure:Layout 1 - INSETA

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ACRONYMS AND ABBREVIATIONSABET Adult Basic Education and TrainingADiIM Advanced Diploma in Insurance ManagementATR Annual Training ReportBBBEE Broad Based Black Economic EmpowermentBEE Black Economic EmpowermentBoD Board of DirectorsCA Chartered AccountantCEO Chief Executive OfficerCoP Certificate of ProficiencyCPD Continuous Professional DevelopmentCRM Customer Relationship ManagementDoE Department of EducationDoL Department of LabourELDP Executive Leadership Development ProgrammeETQA Education and Training Qualifications AuthorityFAIS Financial Advisory and Intermediary ServicesFET Further Education and TrainingFPI Financial Planning InstituteFSB Financial Services BoardFSC Financial Sector CharterFSP Financial Service ProviderGDP Gross Domestic ProductGDS Growth and Development SummitGSB Graduate School of BusinessHciI Higher Certificate in InsuranceHET Higher Education and TrainingIFRS International Financial Reporting StandardsIISA Insurance Institute of South AfricaINSETA Insurance Sector Education and Training AuthorityINSQA Insurance Sector Quality AssurorIciBS Intermediate Certificate in Business StudiesLAP Leadership Advancement ProgrammeLFS Labour Force SurveyLOA Life Offices AssociationLSM Living Standard MeasurementMBA Master of Business AdministrationNSDS National Skills Development StrategyNQF National Qualifications FrameworkNSF National Skills FundOFO Organising Framework for OccupationsRPL Recognition of Prior LearningSA South AfricaSAICA South African Institute of Chartered AccountantsSAQA South African Qualifications AuthoritySARS South African Revenue ServiceSETA Sector Education and Training AuthoritySDF Skills Development FacilitatorSDL Skills Development LevySIC Standard Industrial ClassificationSMME Small, Medium and Micro-enterpriseSSP Sector Skills PlanStats SA Statistics South AfricaWIN Women in InsuranceWSP Workplace Skills PlanINSETA Sector Skills Plan - page i
EXECUTIVE SUMMARYBackground and methodologyThis SSP is a revised and updated document prepared according to the DoL’s guidelines issued to SETAs in July 2005. The updatedOrganising Framework of Occupations (OFO) released by the DoL in July 2007 was used to report on scarce and critical skills. The SSPwill be submitted to the DoL on 31 August 2007.In 2004, the INSETA embarked on an extensive research and broad-based consultative sector skills planning process. The 2005 updatebuilt on the work done in 2004 and comprised the revision and updating of all statistical data, an analysis of the WSPs and ATRs submittedto the INSETA for the period 2004/2005 and another round of interviews with industry bodies in the sector.In October 2005 the INSETA embarked on a sector survey of employment, scarce and critical skills. The information obtained throughthis survey forms the basis for the 2006 update of the SSP. The survey information was augmented by updated information from nationalsources, for example from the latest reports published by the Financial Services Board (FSB), the latest information on the gross domesticproduct (GDP) and the latest Labour Force Survey (LFS) and the WSP and ATR information submitted for the period 2005/2006.In 2007 the SSP was once again updated with data from national sources and from the INSETA’s own data system. The comprehensivesector survey data collected in 2005/2006 was retained as the basis of this SSP update. However, scarce and critical skills information wasobtained from the WSPs submitted for the period 2006/2007. This information was augmented with a telephone survey amongorganisations (mostly small organisations) that had not submitted WSPs. Certain supply-side information was obtained from the ATRssubmitted for the period 2006/2007.Profile of the sectorThe insurance sector forms part of the large and rapidly growing financial and business services sector in South Africa. The sector includesproviders of insurance products (i.e. long-term and short-term insurers and reinsurers) as well as the intermediaries or brokers who sellinsurance products to the public. The sector can be divided into the following subsectors: long-term insurers, short-term insurers, reinsurers,pension funds, collective investment managers, medical schemes and intermediaries or brokers. At this stage approximately 4 000organisations pay the skills development levy to the INSETA. Most of these organisations are very small businesses. Most of the organisationsin the sector are based in Gauteng, the Western Cape and in KwaZulu-Natal.Based on the Survey of employment, Scarce and Critical Skills employment in the levy-paying component of the sector was estimated atapproximately 102 000 in 2005. This could have grown to approximately 106 000 in 2007.Drivers of change in the sectorThe South African insurance sector is integrated in the global insurance environment and is therefore affected by changes in the globalindustry. In recent years the global industry has experienced an increase in regulatory requirements and pressures to comply with theserequirements.Globally, the role of the insurance broker has been changing over the past few years. The influx of direct distribution channels has resultedin independent brokers or intermediaries being bypassed. However, internationally there is an increase in the demand for specialisedbrokers and a change in the roles of brokers. Brokers are more and more required to fulfil the role of financial advisors and to possessprofessional skills. Worldwide brokerage firms are consolidating.One of the main drivers of change in the South African insurance industry is policy and legislation – more specifically the Financial Advisoryand Intermediary Services Act (FAIS Act) which sets minimum qualification and competency requirements for financial advisors. Althoughthis legislation is expected to support the professionalisation process in the sector and to help to restore consumer confidence, it may alsostifle and even reduce employment – especially among brokers or intermediaries.Black economic empowerment legislation and the Financial Sector Charter drive the transformation of the sector and increase the demandfor skilled black employees in all the main occupational categories, but especially in professional positions and as intermediaries or brokers.Proposed changes to the structure of commission paid to intermediaries may put this component of the sector under more pressure andmay lead to a further decrease in the number of brokers.INSETA Sector Skills Plan - page ii
Page 5: Table 4.4 Scarce skills: clerical a
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 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
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ANNEXURE APROFESSIONAL BODIES INTER
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Core component of BEE Indicators Ta
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Senior managementBlackMaleTOTAL MAN
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ANNEXURE ESCARCE SKILLS IN THE INSU
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OCCUPATION level ss Specialisation/
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OCCUPATION level ss Specialisation/
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ANNEXURE FCRITICAL SKILLS NEEDED IN
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OCCUPATION level ss52 Personal Assi
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ANNEXURE GINSETA BUSINESS PLANINSET
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The DoL requires all Councils to un
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SSP Brochure:Layout 1 - INSETA

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