While the pace of transformation as broadly remained slow, it is pleasing to note that the sector has continued to make positive strides towards driving the transformation agenda. Most of the sub-sectors have demonstrated positive performance when comparing the two years under review and more pleasing is the positive performances demonstrated by the market leaders in all sub-sector, who have performed significantly above the average performance. This is a display of commitment by the sector leaders to be at the forefront of driving transformation as a national imperative, and aligns with assertions made by the FSTC’s Chairperson on the sector’s steady progress in contributing towards a transformed society and that “the duty to provide transformational leadership lies heavily on the shoulders of the sector and its leaders”.
However, it must be acknowledged that more still needs to be done by the sector to drive transformation on elements such as Ownership, Management Control, Skills Development and Access to Financial Services; and more so contributions by the smaller players in the sector.
Transformation is one of the non-life insurance industry’s key priority focus areas and as such SAIA has been mandated by its Board to identify and coordinate industry initiatives aimed at assisting members to play a positive role towards the acceleration of transformation of the financial sector. Our contributions include the industry participation towards encouraging the reform of the industry supplier panels project led by the Competition Commission, and the SAIA partnership with Insurance Sector Education an Training Authority (InSeta) and the Insurance Institute of South Africa (IISA) in addressing the industry skills gaps.
SAIA has also played a pivotal role in sectoral engagements and demonstrated commitment in supporting the Department of Employment and Labour’s objective to drive people transformation through the Amendment of the Employment Equity Act. SAIA has continued to engage with relevant stakeholders on the gazetting process to ensure a successful adoption and implementation of the proposed changes as contained in the Employment Equity Bill once passed by Parliament. Other projects include industry data collation on transformation elements pertinent to the industry and significant contributions towards the revision of the Financial Sector Code elements that present leadership opportunities for the industry.
The FSTC 2018/19 and 2019/20 report provides the sector with a clearer baseline in terms of its performance, highlighting areas that still require more commitment in order to improve the sector narrative on transformation.
It largely remains the responsibility of all the FSTC’s constituencies, which include business, government, and social partners, to collaborate in ensuring that the sector adopts and implement the transformation framework (Financial Sector Code), which will drive the sustainability of the sector and meaningfully contribute towards economic growth, social development, and promotion of inclusive society.
For further commentary, please contact:
SAIA Manager: Corporate Affairs
SAIA Corporate Affairs
Office: 011 726 5381
About the SAIA
The South African Insurance Association (SAIA) is the representative body of the non-life insurance industry. It represents the industry to all relevant stakeholders to ensure a sustainable and dynamic industry. SAIA has 58 members, comprising all categories of non-life insurers, including reinsurers. Its members abide by the SAIA Code of Conduct, which ensures adherence to best-practice industry standards and self-regulation.
Its vision is to promote and represent the interests of the non-life insurance industry, while leading and enhancing the efforts of the industry to become recognised and trusted as an important contributor to the South African economy and society.