SAIA Code of Conduct

>> Click here to read the Code of Conduct

>> Click here to download the complaints form

>> Please email complaints form to This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Background

The image and reputation of the industry has become increasingly important. It is a well known fact that the insurance industry has a challenge with regards to its image and reputation in the eyes of many consumers, and within areas of government, the regulator, and the media. In addition, in a new age of consumerism, consumers have quite rightly set high standards for service and value for money and are quick to exercise their rights when they feel aggrieved.

Treating customers fairly has become a great focus point, especially in recent times. The recent (and ongoing) economic crisis emphasized again the risks involved for consumers and other participants in the financial services arena, and the necessity for measures to ensure that individuals, companies and other entities follow rules that will result in a fair deal for consumers and a stable operating environment for product providers.

In fact, the fair treatment of customers has become so important, that the Financial Services Authority (FSA) in the UK launched its Treating Customers Fairly (TCF) a few years ago, expecting all firms to be able to demonstrate to themselves and the FSA by December 2008, “that they are consistently treating their customers fairly”. This is a quote from a FSA TCF publication available on the FSA website.

In 2009, the SAIA (amongst others) was invited to participate in a TCF Workshop held by the Financial Services Board, who is reportedly considering a similar regime in South Africa.

In addition, in the report on ‘Emerging Trends and Strategic Issues in South African Insurance’ published by PriceWaterhouse Coopers in 2008, consumerism, increasing customer demands, customer expectations, customer retention and increasing the customer base, and other similar issues all came out as main drivers, challenges, and pressing issues. In addition, the executives who participated in this PWC survey identified the image and reputation of their companies as the most important measure to judge success.

In view of the above, it is not surprising that industry codes are seen as best practice in terms of the South African Consumer Protection Act.

It is because of these, and other important reasons, that the SAIA Board approved a SAIA Image and Reputation Strategy with self-regulation as a key element of the strategy, and a new SAIA Code of Conduct as the mechanism through which self-regulation could effectively be implemented.

The internal launch

>> Click here to read Viviene Pearson's speaker notes (internal launch)

The internal launch of the SAIA Code of Conduct took place on 16 March 2010. (Download SAIA Manager: Image & Reputation, Viviene Pearson’s speaker notes). It was the culmination of a long and thorough process followed by our industry, which was coordinated by the SAIA. All SAIA members have had ample opportunity to participate in the process and debate that resulted in this Code of Conduct, in order to find the right balance between a Code that inspires the achievement of great heights in terms of the relationship between insurer and its customers, and consumers in general, while at the same time being practical.

This Code is not just another form of regulation, and is certainly not meant as something that is just forced on its members by the SAIA. This is Code belongs to the industry, and SAIA’s members, and is something our members should live by.

Importance of the SAIA Code of Conduct

This Code is necessary for all the good reasons mentioned before, but also because legal controls do not necessarily distinguish between insurers and their associates that follow the best ethical and business practices and those who do not. A voluntary Code will assist in ensuring dubious practices exploiting grey areas are eliminated to the ultimate benefit of current and potential customers, and the short-term insurance industry in general.

In addition, the Code sets standards for ethical business and relationships through voluntary self-regulation, which helps ensure that the spirit of the Code is followed, and not only the letter of the law, where it can be difficult to define good, honest business practices and relationships.

A relationship of good faith lies at the heart of all insurance contracts. It should be with this relationship in mind that SAIA members undertake to comply with the requirements of the SAIA Code of Conduct.