INMAG 2012

P

PUBLISHER’S INFO

PUBLISHER’S INFO Publisher | Andy Mark Managing editor | Nicky Mark Assistant editor | Hanna Barry Copy editor | Margy Beves-Gibson Contributing designers | Gareth Grey, Robyn Schaffner Advertising and sales Michael Kaufmann | michaelk@comms.co.za Blake Dyason | blake@comms.co.za Riccardo Raciti | riccardo@comms.co.za

MedIa

INmag is published by

dear reader

Imagine a world where you could earn good money while enjoying a fulfilling career at the same time. You know it’s out there, but you also have friends and family who have had their hopes and dreams shattered by the harsh reality of post-varsity expectation coming into contact with the abrasive reality that is life. Life is not fair. It doesn’t really care that much about whether you win or lose in whatever career you choose. Life is simply a tableau against which you paint your own story. That story depends entirely on the decisions you make. There are no excuses. You are exactly where you are because of the decisions you have made. Have you squandered the opportunities your parents have worked so hard to provide you with?

Or have you pulled yourself up against impossible odds, seizing small opportunities, building on them, and turning them into a rich and wonderful story of your life.

A division of COSA Communications (Pty) Ltd Ground floor, Manhattan Towers Esplanade Road, Century City, 7441 PO Box 60320, Tableview, 7439 Tel +27 (0)861 555 267 | Fax +27 (0)86 618 3906 E-mail: info@comms.co.za | Website: www.comms.co.za

Copyright cosa communications 2012. All rights reserved Opinions expressed in this publication are those of the authors and do not necessarily reflect those of this journal, its editor or its publishers, COSA Communications. The mention of specific products in articles or advertisements does not imply that they are endorsed or recommended by this journal or its publishers in preference to others of a similar nature, which are not mentioned or advertised. While every effort is made to ensure accuracy of editorial content, the publishers do not accept responsibility for omissions, errors or any consequences that may arise there from. Reliance on any

INmag is a tool. It allows the reader a glimpse inside the financial services industry in South Africa. It illustrates careers in finance, medical and short-term insurance and how these careers could deliver much more than you ever believed possible.

Please enjoy this issue of INmag and good luck with making great decisions in your career.

information contained in this publication is at your own risk. The publishers make no representations or warranties, express or implied, as to the correctness or suitability of the information contained and/or the products advertised in this publication. The publishers shall not be liable for any damages or loss, howsoever arising, incurred by readers of this publication or any other person/s. The publishers disclaim all responsibility and liability for any damages, including pure economic loss and any consequential damages, resulting from the use of any service or product advertised in this publication. Readers of this publication indemnify and hold harmless the publishers of this magazine, its officers, employees and servants for any demand, action, application or other proceedings made

Andrew Mark Publisher

by any third party and arising out of or in connection with the use of any services and/or products or the reliance of any information contained in this publication.

INmag | 2012

3

con t en t s

p6 p8 p10 p12

C

Clever career chocies The marriage of aptitude and interest – sample aptitude test We love it – killer careers in insurance Are you management material?

I nsura nc e a ssoc i a t i ons ( A - Z ) p16 p18 p20 p24 p30

FIA FPI IISA INSETA SAIA

I nsura nc e c ompa ni e s ( A-Z) p37 p41 p47 p53 p59 p65 p73

Etana Lion of Africa Marsh incorporating Alexander Forbes Metropolitan Mutual & Federal Old Mutual Sasria

IN THIS ISSUE

4

p80

p82

Engineer your future – opportunities in engineering insurance

A voyage of discovery – a closer look at marine insurance

INmag | 2012

p84

p86

p89

p90

Stranger than fiction – weird and wonderful claims

Glossary

Forging your future

Contacts

C

FPI FPI

Financial Planning Institute of Southern Africa

SETTING THE STANDARD

This process is called self-reflection and it is vital to ensuring that you make the right choice for you.

Clever career choices

by Bianca Wright

The big wide world may seem daunting but it is also an exciting and potentially fulfilling one – if you make the right choices. Career choice is a very personal process. It means looking at a number of factors: what you enjoy doing, what you are good at, what the potential opportunities are and what you need to do to make it happen. It can seem overwhelming, but if you tackle career choice in a proactive, logical fashion, changes are you will find the option that is right for you.

Before any choice can be made, it is important to get to know yourself. What?

You may ask. Of course, I know myself.

I’m me. Well, yes and no. The truth is that most of us, especially in our teenage years, do not spend enough time getting to know ourselves. This process is called selfreflection and it is vital to ensuring that you make the right choice for you. So the first thing you need to do is begin a process of looking within yourself. Conduct an honest assessment. Ask yourself some questions and answer truthfully, like: • • •

6

INmag | 2012

What inspires me?

What do I love doing?

What am I good at?

As with most things in life, honesty really is the best policy when it comes to selfreflection. It’s no use telling yourself to become a doctor if your maths and science marks aren’t up to scratch and you faint at the sight of blood. Choosing a career path, no matter what that path may be, means first having a realistic picture of your strengths and weaknesses.

It is always useful to gather opinions from those who know you best as well. Your family and friends can point out aspects of your interest or your skill set that you might ignore or dismiss. Don’t let them dictate your choices, but do listen to their opinions.

cle v er career choices

Your love of art might not be the most financially viable option as a career – unless you’re Picasso – but it doesn’t mean that you have to turn your back on the art world. Specialist art insurance could be a career path for you. You will attend gallery openings and exhibitions. Your days will be filled with discussions about art in its many forms. A few local specialist art insurers are on Interpol’s help list and have been pivotal in tracking down stolen artworks around the globe.

As with most things in life, honesty really is the best policy when it comes to self-reflection.

Once you’ve done your self-reflection and crafted a clear and insightful picture of yourself, you can start to do research. Don’t put yourself into a box; be creative and find out about careers in fields you may only have heard of, but know very little about.

Did you know that your love of flying need not automatically mean a career as a pilot? What about aviation insurance as an option? Imagine travelling all around South Africa, the continent and beyond, talking to plane owners and pilots, visiting airfields and airlines and talking to people who love the aviation industry as much as you do.

That’s what working in aviation insurance is all about, and there are companies that specialise in exactly that. When you think outside of the box, you open up possibilities for yourself and provide opportunities to grow in your interests.

Research on paper is good but real-world experience is better, so your next step should be grabbing whatever experience you can find in the fields you have pinpointed as possible careers.

Work shadowing or even just chatting to someone already working in the industry can be invaluable in helping you determine which option is the best fit. If you are lucky you might even find a mentor, an established industry person willing to advise and guide you through the career choice process, through your training and into your first job. If you have such an opportunity, grab it!

The final step is about the logistics; those down-toearth, nitty gritty elements that adults have to deal with. What kind of training do you require? How long will it take? How much will it cost and what options are available to pay for it? All of these aspects impact on your ability to pursue the career you have chosen. These elements can seem like challenges – especially the financial aspect – but they can also be opportunities.

There are many different paths that can lead to the same outcome and by thoroughly researching the possibilities, you will be in the best position to make an informed and realistic decision that hopefully leads to the career of your dreams.

Once you have broadened your field of possibilities, you need to work towards narrowing it down again. This is where you combine what you have learned about the possible career paths and what you have learned about yourself. Where are the areas of overlap? What excites you the most?

What is the most feasible way to feed your passion for a particular area?

INmag | 2012

7

If you are to succeed in your career, whether in insurance, art or science, you must find your passion.

The marriage of aptitude and interest

by Bianca Wright

A career in the finance industry, as with all careers, requires a blend of aptitude and interest in the field. You may be a whiz at maths and love accounting, but it does not mean the finance industry is for you. So how can you tell if you are cut out for a career in the exciting and challenging world of insurance? One option is to take an aptitude test. An aptitude test is designed to measure your potential to succeed in a particular field. These types of tests may comprise abstract reasoning tests to explore how you problem solve, numerical and verbal tests, as well as personality tests.

8

INmag | 2012

If you mainly chose answers a, then you are likely to possess the qualities that are looked for in a finance professional. The insurance and general finance industry looks for people who can see the bigger picture, work within a team but also demonstrate initiative and be proactive when given a task. Other qualities include a customer-focused approach and analytical thinking skills.

Of course, there are many different ways of looking at aptitude and personality profiles. The father of psychology, Carl Jung, for example, believed that personality types were determined by combinations of qualities on a continuum.

The three parameters that he identified were: Extraversion – Introversion Sensing – Intuition Thinking – Feeling If extraversion, intuition and thinking are your dominant parameters, you will do well in a career that involves interaction with people and where your powers of intuition are valued. A good option is a career in analytics or finance.

Here is a sample aptitude personality test to help you on your way.

Remember, though, that while this is based on a number of aptitude and personality tests, it is not a definitive scientific gauge of your abilities.

1. In terms of my own development: a. I set clear goals for myself b. I go with the flow c. I rely on advice from others 2. When given a task to do, I: a. Ensure that I find out what I need to know and then get on with the job myself b. Procrastinate and then apply myself at the last minute c. Expect clear guidance every step of the way 3. Success means: a. Looking at results of what has been done and seeing what has been achieved b. Doing your best even if you don’t always achieve the results you wanted c. Determining how to make my boss happy

4. When I approach a task I: a. Divide it into manageable chunks and plot out how I can achieve each individual goal b. Jump right in and get going c. Wait for others to take the lead and give input when asked 5. When faced with a decision, I a. Like to weigh up all the facts b. Go with my gut c. Rely on the advice of others 6. In a team, I am generally: a. The leader b. A team player c. A maverick who does my own thing 7. The most important stakeholder in a business transaction is: a. The customer b. Me c. The boss 8. My strengths lie in my ability to: a. Analyse data and strategise b. Express my views and those of others c. Empathise with other people

A combination of extraversion, sensing and feeling points to an outgoing personality that is in touch with reality and enjoys engaging with others on an emotional level. Counsellors, teachers and writers often fall into this category.

Introversion combined with sensing and thinking translates into inward-focused personalities that are usually meticulous. Careers in administration or librarianship are possibilities.

If you are dominant in introversion, intuition and thinking, you will tend to thrive in careers such as science, while dominance in introversion, intuition and feeling point to an interest in creative fields such as writing, art or journalism.

Whichever category you fall into, it is important to look at more than just your abilities (though obviously those are important, too); if you are to succeed in your career, whether in insurance, art or science, you must find your passion.

By determining your personality type, you can start to see the career areas that deserve additional exploration and consideration. Take advantage of the opportunities for career counselling and aptitude testing that are presented to you and be honest with yourself about your skills and talents. Never cheat on an aptitude test or personality profile test because you feel that you should give the right answers. In the end you will be cheating only yourself. A career choice is one you must live with for the rest of your working life and it is one that should be treated with respect and seriousness.

If you are interested in taking some aptitude tests, there are a number of online sites that offer free samples: • http://www.psychometricinstitute.com.au/Free-Aptitude-Tests.asp • http://www.practiceaptitudetests.com/ • http://www.funeducation.com/

INmag | 2012

9

We love it

by Angelique Ruzicka

The concept of forging a career in the insurance industry may not sound as sexy or appealing as say the music or film industry. But there are many people who have landed a role working in finance and insurance who have found their careers to be fulfilling, enjoyable and full of opportunities. INmag spoke to a number of people who’ve landed jobs in insurance and found that if they could do it all again, they wouldn’t change a thing.

Victorian author Samuel Butler once said, “People are always good company when they are doing what they really enjoy.” Sadly, ‘I love my job’ is a sentence that is uttered very seldom these days. If you’ve finished matric or if you’re studying at a tertiary institution and are not quite sure what industry or career path to follow, a job in insurance may be just up your street.

It’s not all dull suits and door-to-door sales. It’s definitely not all just for men either and many women have entered the industry, climbing the career ladder to attain high-ranking positions that pay well.

10

INmag | 2012

We found that people enjoy working for the industry as it fulfils their investigative nature, doesn’t keep them desk-bound and when they give clients the right advice it gives them all the work satisfaction they could possibly need. We have proof of this, too. Last year, INmag’s sister publication, RISKSA conducted a salary survey questioning respondents about salary and job satisfaction. While the majority of participants were unhappy with their salary, most of them (77.5 per cent of participants) admitted to being satisfied working in the field they were in. Only 22.8 per cent said they were unhappy in their jobs.

We’re not going to lie to you though. It is not easy getting into the financial services industry because, thanks to all the regulatory examinations, you will have to put in some hard work and make some sacrifices, such as leaving your friends at the beach while you hit the books to study.

But it appears the industry pays dividends in terms of job satisfaction and if you make it through the ranks you could earn a decent living. Here, some professionals share their reasons for loving their jobs:

one of those fortunate individuals who thrive on difficult situations. It is the best method to extend your horizons and thereby drive personal growth. The healthcare industry provides this for me (and more) on a fairly regular basis and I cannot see myself forgoing this experience for the yellowish meadows on the other side of the fence.

Peter Barrett, vice-president of claims: international division, RGA Reinsurance Company of South Africa Ltd Nobody sets out to work in insurance.

But for me [this industry] is about variety and travel and, on the claims side, there are just so many good people. It can be financially rewarding, too. For youngsters it may not be or sound exciting, but there is variety in insurance. It gives you the opportunity for a good work-life balance. Whether you want to be in legal or accounting you can do anything in insurance, while still having a life. The industry does get bad press sometimes, but there are good reasons for working here.

Grant Cooper, director, Proloss I love it as it’s different every day. I am not confined to an office or desk and I meet interesting people all the time. I work with people to find out how their business operates and that’s why I love my job. It constantly changes and that’s what I like. I also love to see the appreciation on clients’ faces. You go to someone’s house that’s burnt down and they’re sad. It’s great when you give them the keys back and, provided they are insured the right way, witness their reaction when they see everything is shiny and new. We are giving back to the community.

Johan Lombard, technical marketing, Momentum Health The healthcare sector is a very challenging environment compared to other forms of insurance in South Africa. The tight regulation and fierce competition, combined with the demographic challenges of our country, makes it a truly unique and rewarding experience for all individuals bold enough to sail these waters. I am

Paul North, director, Proloss: It’s the dynamic work environment that draws me. In claims, you deal with different people, processes and environments all the time. There’s complexity too – no two fire claims, for example, are the same. There will always be a challenge. I love meeting people and dealing with insurance brokers – each day is different. I’m never bored, especially when I am dealing with claims. Once you are in it, it’s in your blood.

Sharon Lochner, head: communication, Momentum Health I am one of those fortunate individuals who has had the opportunity to spend time working in virtually all sectors of the financial services market.

An important life lesson which my background in sales has taught me is that you need to find your niche to be truly passionate about what you do.

The reason I have chosen Momentum Health as my niche is a combination of the quality of people I work with, the intriguing nature of the products and the challenges introduced by an everchanging regulatory environment. And the best part is I am still learning every day, eight years down the line.

I’m never bored, especially when I am dealing with claims.

Once you are in it, it’s in your blood.

Craig Brigg, director, Shackleton Risk Management Operating in a market designed for professionals and catering for a group of specialised individuals provides significant challenges for the insurance representative and ensures that working in this industry presents an extremely interesting and valuable opportunity. Our market is all about building relationships and developing key partnerships with our clients, and it brings with it a keen opportunity to learn about insurance and grow an individual’s knowledge within key avenues of the market. This is what makes insurance an interesting and fascinating sector.

Maxleigh Derman, Derman & Duncan Insurance Consultants CC I believe I do a proper job and don’t deal with any third class companies.

What I tend to find, both in domestic and commercial, is that a lot of clients are underinsured as some brokers don’t always assess risk properly. However, 40 years down the line and I feel good about working in this industry. There are a lot of great people and I believe it’s all about the clients. I am looking at succession planning at the moment as people are unfortunately leaving the industry. If you get a young person who is prepared to study and take the flack in terms of RE exams and the other forms of red tape, they would do well. There’s a shortage of jobs, yet the government is making it difficult for everyone to get into the insurance industry. If students join a small brokerage, they would learn a lot more and there would also not be the added pressure to constantly perform.

policemen. We enjoy having a good rapport with clients and although we work on an ad hoc basis, we dont mind that. Occasionally we are involved in dangerous cases, as we have to investigate stolen vehicles and hijackings, but we enjoy the excitement.

Martiens Barnard, head of technical marketing at Discovery Invest Working at Discovery Invest over the last four years since the launch of the company has been an amazing experience. Over this time we have been involved in numerous projects like the development of the financial needs analysis package and the launch of very innovative investment products. This was not only exciting, but also provided a great opportunity to grow as an individual.

The innovation and urgency is what inspires me. It is about trying to get ways of solving everyday problems in new ways.

These projects allowed me to demonstrate Discovery’s values of innovation and work at a high pace while striving to produce an outcome of dazzling quality.

Sandra Snowball, sales consultant, Insure Group I do love this industry because despite all outsiders’ beliefs, it is constantly evolving.

You can learn something new every hour of the day, not just every week. Every little nuance creates a new learning opportunity and that for me is an absolute drawcard as your mind can be stimulated continuously. I also love the individuals in this industry – always welcoming and willing to help (whether work related or helping a charity). I can quite honestly say that I love all the different types of people who work in this industry.

Francois Balt, founder of Francois Balt & Associates CC We are fraud investigators and enjoy working in this area as we are ex-

INmag | 2012

11

We want to employ people who can work accurately and show enthusiasm for the industry, who aren’t just plodding along every day.

Are you

management material?

by Elvorne Palmer

Just what does it take to be at the top of the insurance game? What do you need to get an entry-level job and how do you advance to middle management? And how do you become the CEO of a brokerage or insurance company? Top guns in the industry tell us what they look for when hiring.

Underwriting Managers (UMA) are the specialist arms of insurance companies.

Insurers provide the financial backing, while the underwriters provide expertise on a specific subject. For example, if you’re into extreme sports, you could become a specialist extreme sports underwriter for one of the big insurers.

Lana Mizen is the executive director of one such specialist UMA, BnB Sure, which specialises in covering bed and breakfasts (B&B) and guesthouses.

She expects any person who applies for a job with them to have obtained their national senior certificate (matric).

“We will take on new employees at entry-level if they have matric because the Financial Services Board (FSB) allows them to work under supervision while studying toward an insurance qualification. We will usually focus on evaluating the individual and select those who show potential. We want to employ people who can work accurately and show enthusiasm for the

12

INmag | 2012

industry, who aren’t just plodding along every day.”

Once the ideal candidate has been selected, they can start working (under supervision) to gradually gain the experience that will count towards their level one regulatory examination.

This is pretty much possible for entering a position anywhere in the industry. Mizen said that they will then continually measure the new person’s work performance and assist them in getting the necessary qualifications.

Support will also be given through the various stages of their development through the ranks and their drive into areas of expertise.

At times, the pressure can be on right from the start. “The new employee is allowed six years to complete their qualification, but we definitely want to see them get their level one completed within the first two to three years,” Mizen added.

For Athol Fairley, owner and operator of Infinity Insurance Brokers in Roodepoort, experience in dealing with clients is vital when considering a new employee. “I look for someone with at least two to three years’ experience in the insurance industry,” he said. “I am not as impressed by qualifications – except those required by the Financial Advisory and Intermediary Services (FAIS) Act – as I am with how a broker deals with people. How he or she interacts with the client is of utmost importance.”

Large insurers, like Mutual & Federal, have set up academies that take on new recruits and train them in the job. Hannes Smith, group manager of human capital development at Mutual & Federal, said that it identifies and recruits new candidates mainly through graduate, internship and learnership programmes. The minimum requirement needed to join Mutual & Federal is matric.

“Even individuals in back office support need to have matriculated,” Smith said. “Criteria for graduates and interns might be somewhat different, but particularly through our learnership programmes we employ new representatives who show promise – even if they only have a senior certificate. We have our own academy (the Mutual & Federal Insurance Academy), accredited

by Insurance Sector Education and Training Authority (INSETA), that runs training and skills programmes for us to ensure that new employees get the qualification they need to comply with the Financial Advisory and Intermediary Services (FAIS) Act.” New representatives appointed post 2010 need to have at least one year experience and pass both the regulatory exams - over and above obtaining a full qualification in order to be compliant. At the Mutual & Federal Insurance Academy the qualification

Fast track your career What can new employees do to ensure progress in their career?

“We take in new candidates and train them inhouse,” Smith said, “but remember that they have to work under supervision until they have completed at least the first level of the regulatory exams. This impacts on productivity, because the employee’s work needs to be supervised.”

In Smith’s opinion, it’s vital that the new representative becomes competent and qualified to work without supervision as soon as possible.

“If a representative needs one year’s experience to qualify for level one, it would be ideal if they can also complete the skills and academic (exam) section in that first year. That is the kind of turnaround time that will make an employee an asset to our company.”

representatives, having a commerce degree (BCom) would be impressive because I believe that academic qualification trains the mind. But there’s often no replacement for experience. Our ideal candidate will have experience and a qualification – even if they are still working toward completing it.”

Darelle Smit, owner-operator of Zilwer-Sure Brokers, agrees that a national senior certificate is essential for entering the industry as a broker.

“We will employ an individual with matric to work under supervision and then support them in attaining their qualification.”

is offered as an extensive eight week course, while the required experience is gained while working under the supervision of Mutual & Federal.

“This forms part of our Earn as you Learn campaign,” said Smith.

A generic business qualification and some experience is what the Garrun Group Insurance Brokers look for, according to director Cliff Garrun. “When we look at potential

In the middle Smit feels that smaller brokerages have a unique need. Having a supervisor with a key individual (KI) qualification is imperative.

However, it is dangerous to have only one person qualified as a KI. “Without a qualified KI, the brokerage will not be allowed to trade. This is according to the new FAIS Act, and for us it means that if something should happen to our key individual (which happens to be me at present), we would have to close shop.”

While companies with numerous employees will most likely have several individuals – often at senior level – with the KI qualification among their staff, smaller companies don’t have that luxury.

Often the owner manages the business and supervises staff, meaning the lines between middle and senior management are a bit blurred. “It’s advisable that the owner or operator has a KI

qualification, and then employ a KI in middle management,” added Smit.

“Brokers will likely prefer to employ individuals into middle management who have already completed at least level one or two of the KI course, because the qualification requires the individual to have supervisory experience. The KI adequately fills, to my mind, the supervisory role in a brokerage.”

Hannes Smith said that Mutual & Federal requires middle- to senior level management to have either a solid background in financial services or extensive insurance experience, depending on the nature of their role.

We place more emphasis on insurance qualifications at National Qualification Framework (NQF) level V, VI or VII for our core insurance positions, whilst an appropriate line of business qualification (HR, IT, Finance) will be more appropriate for such positions in support functions.

According to the INSETA website, NQF level five qualifications currently registered with the South African Qualifications Authority are national diplomas or certificates in long-term risk assessment, short-term insurance and wealth management. They are obtainable from any number of INSETA-accredited learning provider institutions.

One way of getting into middle management is to wait it out, get as much experience and hope that someone notices talent and dedication. M&F said it promotes internally. “We will often identify candidates inside the company for middle management. In such a case, we would have them participate in management training programmes at the University of Stellenbosch Business School,” Smith said.

Getting to the top CEOs in insurance are the financial service world’s rock stars.

The long hours and stress are probably well offset by the reward of accomplishment and a lifestyle most would die for. Anyone in the industry could do far worse than aim to become an executive of a brokerage, UMA or insurer.

Garrun said that having a legal

qualification could well be the key to executive management for brokers in the future. He highlighted the potential need for brokers to start employing compliance officers, which could give candidates wanting to secure a position in management a unique opportunity. “Being compliant with legislation is going to become more important in the future. You could hire someone at mid-level and train them, but nowadays it’s advisable to have a compliance officer at executive level as well. This means that there should be plenty of great prospects in the future for candidates with a BCom and a recognised legal qualification,” he said.

“In a corporate environment, companies will likely look at hiring a CA for the finance department and an actuary to run the department that manages the company’s risk or even reinsurance,” Garrun added.

“We operate in a very niche market so BnB Sure will almost always look to promote people to top management internally.

Our company deals in insurance, but we are also very passionate about the hospitality industry – our cover and products are driven by the needs of B&Bs and guesthouses. This unique company culture means we will seldom look to employ from outside the company,” said Mizen.

Employing highly qualified individuals with experience in running a company is common practice among insurance companies but, for BnB Sure, it’s not that crucial.

Smith said that it’s traditionally individuals with 10 to 15 years of experience in senior management roles within the financial services sector who don the robes of executive management at Mutual & Federal. “I’d suggest to anyone wanting to become an executive officer at our company to complete their masters level qualification and gain some experience in running a company in the finance sector. They wouldn’t necessarily need experience in running an insurance company, but at least some experience in top-level management of a reputable company in the financial industry.”

INmag | 2012

13

14

INmag | 2012

MOUTHPIECES OF THE INDUSTRY

A

A

A S S O C I AT I O N S A TO Z

ASSOCIATIONS A TO Z Insurance industry associations have a vital role to play in keeping all stakeholders, from intermediaries in small brokerages to employees in large corporations, in the loop. Membership to the different associations is reliant on certain conditions to keep the standards in the industry as high as possible, and strict codes of ethics apply.

Whether it’s facilitating information flow between members, acting as the mouthpiece of the industry when talking to government or the media, or dealing with issues, the following associations ensure the sustainability of the insurance industry.

Life is a sum of all your choices.

INmag | 2012

15

F inancial I n t ermediaries A ssocia t ion

Why

becoming a financial adviser is an attractive option A career in the financial services industry can be exciting and rewarding for those who are hard working, good with people, have an analytical mind and like to have control over their earnings.

Financial intermediaries, also known as financial advisers, act on behalf of individuals or corporate clients to protect their financial security, investments and assets against potential harm or loss.

finding regarding the client’s individual circumstances, after some initial declarations, to ensure that the client knows who he is dealing with and what can be expected from the adviser.

In many cases, people make the initial contact with a financial adviser because of a specific need, such as insurance for a new car, a job change that may need rethinking, retirement planning or other savings programmes.

The adviser then analyses the information and creates a detailed outline of the specific financial needs and/or shortfalls of their client.

The adviser investigates options as to how these needs or shortfalls can be met, preferably identifying several different approaches that can be priced with quotations from appropriate product providers.

The main role of a financial adviser is to investigate the needs of their client and provide the most appropriate insurance cover and investment advice to match their client’s specific needs and budget.

This process requires extensive fact-

16

INmag | 2012

The alternatives are then explained to the client along with the pros and

related fields, including UNISA. After completing a relevant tertiary qualification, a post-graduate degree to become a Certified Financial Planner (CFP) can be studied. A CFP qualification is the premier financial planning qualification in the world and is recognised in 19 different countries.

Financial intermediaries are also required to pass the Financial Services Board (FSB) Regulatory Exams, following which an operating licence will be issued by the FSB. Thereafter, the financial intermediary has to ensure they are compliant with the Financial Advisory and Intermediary Services (FAIS) Act, which includes a requirement to prove that they are maintaining their knowledge and application skills through a Continuous Development Programme (CDP).

Not only are the employment options vast, but this career can take you anywhere. A financial intermediary is not bound to operate in a certain country – everyone needs insurance, retirement and healthcare financing advice.

Those who choose a career as a financial intermediary should align themselves with representative bodies such as the Financial Intermediaries Association of Southern Africa (FIA), which ensures that all of its members comply with legislation within the financial services industry.

The FIA recently launched its new Code of Conduct, which aims to ensure that all FIA members are able to align their business with the new and forthcoming legislation as easily as possible. Advisers now have a lot of legislation to comply with and the Code of Conduct assists them in ensuring they engage with clients in a professional manner.

There are various employment opportunities available for financial intermediaries – either at a specialised brokerage firm, corporate brokerages (such as those within banks and other financial organisations), or by starting their own business.

cons of each so that an informed decision can be made and the selected programme implemented, always taking care to ensure that the solution is within the financial means of the client.

The typical skills required to become a financial intermediary include: - Good interpersonal skills - Ability to develop life-long relationships with clients - Good communication skills - Self-discipline - Ability to work independently - Aptitude for research - Some ability in mathematics.

In terms of educational requirements, an interest in subjects such as mathematics, accounting, business

studies and economics at high school is advantageous.

There are various types of financial advisers – from those who advise on short-term insurance such as home and motor policies, to healthcare consultants and financial planners who provide advice on retirement planning and investments and help clients to construct their overall portfolios.

While you can become a financial adviser without a degree initially, a recognised tertiary education in commerce, finance, accounting or economics would be necessary to obtain full accreditation.

Several tertiary institutions offer qualifications in the insurance and

About the FIA The Financial Intermediaries Association of Southern Africa (FIA) represents more than 15 000 licensed financial services advisers throughout Southern Africa. The origins of the FIA date back more than 50 years, with the organisation having recently evolved into a single, united national body representing the bulk of active licensed intermediaries in South Africa’s financial services industry.

The FIA’s primary purpose is to represent, protect, promote and further the common interests of its members.

Not only are the employment options vast, but this career can take you anywhere.

A financial intermediary is not bound to operate in a certain country – everyone needs insurance, retirement and healthcare financing advice.

Working in the financial services industry is not only personally rewarding, as you build meaningful relationships and add value to the lives of people, but it can also be very financially rewarding.

The earning potential as a financial intermediary is almost limitless because earnings are largely commission based and can therefore be determined by the individual. Hard work and determination can make you a very successful financial adviser.

For further information on what is needed to become a financial intermediary, contact the FIA on 012 665 0085.

By belonging to the FIA, intermediaries can trust that they have the support of an influential organisation with the necessary stature and legitimacy to represent them at the highest levels of the industry, including regulatory bodies and industry associations.

The FIA enjoys a large and steady national membership comprising financial services intermediaries who cover the broad spectrum of financial planning.

All members of the FIA are authorised financial services providers or representatives of such providers. In terms of the FAIS Act, our members must adhere to all the requirements prescribed by the Act and its Regulations.

To find out more about the FIA, visit the website at www.fia.org.za or contact the head office on 012 665 0085.

INmag | 2012

17

financial planning ins t i t u t e

A career in

financial FP planning FPI

I

Financial Planning Institute of Southern Africa

SETTING THE STANDARD

Financial planning is the process of developing strategies to assist clients in managing their financial affairs to meet life goals. Life goals can include buying a home, saving for a child’s education or planning for retirement. Financial planning involves reviewing all relevant aspects of a client’s situation across a variety of financial planning activities, including inter-relationships among oftenconflicting objectives.

This enables the professional financial planner to deliver integrated financial solutions that allow clients to take control of their finances to create and secure lifelong wealth and financial security in an holistic way.

Given the complexities, uncertainties and confusion the consumer faces on a daily basis, financial planning professionals assist with sound financial planning. The plan compiled is what differentiates professional financial planners from

18

INmag | 2012

the myriad other advisers in the sector. In the world of financial advice, the Certified Financial Planner/CFP mark ranks foremost worldwide.

Financial planning is a profession, just like medicine, law, accounting or engineering and continues to be one of the fastest-growing professions worldwide. As a career, it enables those people with entrepreneurial skills to eventually set up their own businesses. We advise school leavers to get their degree, spend some time in a large corporate financial services company to gain the experience needed to advance their careers and to continue as lifelong learners.

Once qualified, a wide range of career opportunities exist, not only as professional financial planners but as managers, specialists within the life insurance, banking, asset management and investment sectors, as well as other providers of financial planning products in the financial services sector.

The financial planning professional needs to master a complete set of abilities to competently deliver a comprehensive financial plan to a client. Financial planning professionals will likely work with other professionals in evaluating and assessing various aspects of a client’s financial situation (for example, working with lawyers on estate planning matters, working with accountants on tax planning matters, etc.).

About the FPI The Financial Planning Institute of Southern Africa (FPI) is a non-profit professional body formed in 1981 as the Institute of Life and Pension Advisers (ILPA) to improve levels of professionalism. Living in a global village meant ensuring that local practices were aligned to global standards. To

The financial professional needs to master a complete set of abilities to competently deliver a comprehensive financial plan to a client.

ensure that financial planners in South Africa met international standards, in 1998, the FPI affiliated with the Certified Financial Planner Board of Standards Inc. in the United States; in April 2000, adopted the new name (Financial Planning Institute of Southern Africa); and was a founding member of the international Financial Planning Standards Board (FPSB).

Today, the FPI is regarded as the leading independent professional body for financial planners in South Africa that ensures South Africans have access to, and value, competent financial planning. Through the global partnership with FPSB in the United States, along with over 20 other countries, the FPI is the only institution in South Africa able to offer the CFP certification.

The CFP mark asserts that the financial planning professional has met appropriate competency,

ethics and professional practice standards to provide comprehensive personal financial planning services to clients.

Professionalism in financial planning rests on competence and ethics. As the custodian of the profession, the FPI is uncompromising in establishing and maintaining world-class professional financial planning standards, ensuring that members remain competent and ethical to retain their professional status. Many top financial institutions have adopted us as an independent standards partner and our members include both general practitioners and specialists in particular branches of financial planning.

How to become a professional financial planner In order to be accepted as a professional member of the FPI, candidates must meet the FPI’s four Es: • Education • Experience • Examination • Ethics In addition, members are required to maintain technical competence and fulfil ethical obligations by renewing their membership annually. Every two years, CFP professionals must complete at least 65 hours of Continuous Professional Development (CPD) to stay current with developments in the financial planning profession. At least five of these hours must be spent on the Code of Ethics and Professional Responsibility and the Financial Planning Practice Standards.

The steps: 1. Obtain a relevant qualification from one of the FPI-accredited education institutions.

2. Obtain the necessary financial planning experience.

3. Complete the professional board examination.

4. Apply to the FPI for a professional designation.

Institution

Qualification

NQF Level

University of the Free State

Bluris Financial Planning Law Postgraduate Diploma in Financial Planning

6 8

University of Johannesburg

BCom Finance BCom Honours Financial Planning

6 8

University of Stellenbosch

BCom Financial Planning Postgraduate Diploma in Financial Planning

6 8

Nelson Mandela Metropolitan University

BCom Financial Planning Postgraduate Diploma in Financial Planning

6 8

Milpark Business School

Certificate in Financial Planning National Certificate in Financial Planning Postgraduate Diploma in Financial Planning

5 6 8

PSG Konsult Academy

Certificate in Financial Planning National Certificate in Financial Planning Postgraduate Diploma in Financial Planning

5 6

Further Education and Training (FET) Institutions: (Boland College, College of Cape Town, False Bay College, Northlink College and Cape College and False Bay College)

National Certificate: Wealth Management

5

The CFP®, CERTIFIED FINANCIAL PLANNER® and are trademarks owned outside the US by Financial Planning Standards Board Ltd. The FPI is the marks licensing authority for the CFP Marks in South Africa through agreement with FPSB. Visit FPSB’s website for more information at www.fpsb.org.

For more information about membership, please contact the FPI on: Tel: 086 1000 FPI (374) | Fax: 011 475 1158 | E-mail: fpi@fpimail.co.za | www.fpi.co.za

INmag | 2012

19

I nsurance I ns t i t u t e of S ou t h A frica

The Insurance Institute of South Africa

The Insurance Institute of South Africa was established in 1964 and modelled on the Chartered Insurance Institute (CII) in London, and is still affiliated to the CII as the international body. The IISA has a full-time office in Hyde Park, Johannesburg.

The delivery of education and training has mostly been outsourced to preferred providers, with whom the IISA works in providing learning material and ensuring professional standards.

As with the CII, the major functions of the IISA include the awarding of professional membership to those who qualify.

Programme in Risk Management 108 Credits @ NQF Level Six

20

INmag | 2012

IISA Programme in Insurance 60 Credits @ NQF Level Five

Higher Certificate in Short Term Insurance 120 Credits @ NQF Level Five

IISA LICENTIATE

IISA Programme in Insurance 60 Credits @ NQF Level Five

Higher Certificate in Short Term Insurance 120 Credits @ NQF Level Five

IISA MEMBER

IISA Programme in Advanced Insurance Practice 60 Credits @ NQF Level Six

OR

OR

Elements of Insurance 12 Credits @ NQF Level Five

PLUS

IISA Introductory Programme in Insurance 60 Credits @ NQF Level Five

PLUS

OR

IISA Introductory Programme in Advanced Insurance Practice 60 Credits @ NQF Level Six

IISA ASSOCIATE

IISA FELLOW

IISA membership levels and suggested qualification stream 2012

STEP 01

OPTION A Certificate of Proficiency plus Intermediate Certificate in Business Studies Historically an industry-recognised certificate awarded by the College of Insurance in South Africa, containing SAQA-recognised credits. South African students should rather follow Option B as an equivalent route. These programmes are currently presented by the Botswana Accountancy College (not SAQA recognised).

IISA Membership A level two membership of the IISA is awarded to those who qualify with these programmes and apply to the IISA for membership, with the intention that the member progresses to the next level of study.

Who should do this programme?

This level of study is ideal for those seeking an introductory overview of the industry with a more detailed knowledge of the products and processes used in the industry.

OPTION B

IISA Short Course in Elements of Short-term/Life Insurance/Retirement Funds Subjects Presented by the Unisa Centre for Business Management, candidates complete one subject, chosen from three possible streams: Subject

Description

Credits

Elements of Short-term Insurance

An Introduction to Short-term Insurance

12 credits @ Level Five

Elements of Life Insurance

An Introduction to Life Insurance

12 credits @ Level Five

Elements of Retirement Funds

An Introduction to Retirement Funds

12 credits @ Level Five

IISA Membership This certificate satisfies the academic requirements for application as a level two member of the IISA, with the intention of the member progressing to the next level of study.

Who should do this programme?

This programme provides an overview of the insurance industry and the history of insurance and is ideal for candidates who passed matric English and mathematics and who have already spent some time working in the insurance industry, or for those with a non-insurance degree seeking to fast track into the insurance programmes.

OPTION C

Past

Current

FET Certificate in Short-term/Long-term Insurance Qualification

Description

Credits

SAQA ID

FET Certificate in Short-term Insurance

An introduction to Short-term Insurance and basic business skills

140 credits @ Level Four

66610

FET Certificate in Long-term Insurance

An introduction to Long-term Insurance and basic business skills

140 credits @ Level Four

49649

National Certficate in Shortterm Insurance

120 credits @ Level Four

21796

National Certficate in Risk Management

140 credits @ Level Four

24396

National Certficate in Wealth Management

120 credits @ Level Five

24396

FET Certificate in Short-term Insurance

140 credits @ Level Four

49929

Qualified individuals with any of the above industry-recognised full qualification awarded by an INSETA accredited training provider, containing SAQA-recognised credits, can also be recognised and progress in their profession.

IISA Membership These qualifications satisfy the academic requirements for application as a level three member of the IISA. Who should do this programme?

Ideal for those seeking a more general knowledge of the products and processes used in the industry or seeking a learnership as access to the industry.

INmag | 2012

21

OPTION A IISA Introductory Programme + Programme in Insurance Subjects Ten semester modules comprising a total of 120 credits at Level Five, selected from a choice within one of three streams of either short-term, long-term or retirement funds.

Why progress to this level?

For those who are seeking a deeper understanding of practical, applied subject matter in various fields.

IISA Professional Membership The completion of these programmes satisfy the academic requirements for application as a licentiate member of the IISA, with the intention of progressing in professional stature.

STEP 02

Presented by: Unisa Centre for Business Management Who should do these programmes?

This qualification is appropriate for those who are working in the industry with some lower-level studies, especially the IISA’s preferred track, or who are relatively new to the industry, or who have an appropriate tertiary qualification which is not insurance related.

OPTION B Higher Certificate in Short-term Insurance This qualification is a SAQA Registered Qualification and comprises of six subjects which awards 120 credits at NQF Level Five upon completion.

Why progress to this level?

For those who are seeking a deeper understanding of practical, applied subject matter in short-term insurance.

IISA Professional Membership The completion of this qualification satisfies the academic requirements for application as a licentiate member of the IISA, with the intention of progressing in professional stature.

STEP 04 STEP 03

IISA Introductory Programme + Programme in Advanced Insurance Practice

Presented by: Milpark Business School Who should do these programmes?

This qualification is appropriate for those who are working in the industry with some lower-level studies, especially the IISA’s preferred track, or who are relatively new to the industry, or who have an appropriate tertiary qualification which is not insurance related.

22

INmag | 2012

The major functions of the IISA include the awarding of professional membership to those who qualify.

These programmes comprise of a total of 10 semester modules totalling 120 credits at NQF Level Six upon completion. Candidates are required to select their chosen route of specialisation within either short-term or long-term insurance.

Why progress to this level?

Either to deepen knowledge in one or more classes of business within insurance, or to gain the ability to apply the acquired knowledge in practical management situations.

IISA Professional Membership Satisfies the academic requirements for election as an associate member of the IISA. Presented by: Unisa Centre for Business Management

Programme in Risk Management The programme offered by Unisa Centre for Business Management has been approved by the IISA’s Professional Standards Committee as an approved qualification for fellowship, but others will be considered in future. There are additional criteria for membership purposes, other than the qualification, which can be obtained from the membership officer.

IISA Professional Membership This qualification satisfies the academic requirements for election as a fellow of the IISA. Why progress to this level?

To demonstrate a high level of understanding and application of knowledge within the broader field of insurance and risk management and to achieve the wellrecognised fellowship standing with the IISA.

IISA professional membership criteria The IISA has two different types of membership categories, which are general members and professional members.

Professional membership is awarded to those who have achieved an academic status as well as having been recognised for their achievement in the industry. For this purpose the detail of this document sets out the criteria required for each professional membership designation awarded by the IISA. It is important to note that although each professional designation is awarded in recognition of a qualification achieved, that this is not the only criteria for the designation status.

The three professional designations are: • Licentiate • Associate • Fellow

Fellow 1. Three different qualification approaches are possible in satisfying the academic requirements for fellowship, which are: a) Further suitable post-graduate study* in a field directly related to insurance; or b) Appropriate studies in a field not directly related to, but compatible with, insurance and acceptable to the IISA; or c) Practical projects, relevant dissertations or other acceptable applications of knowledge in the insurance field acceptable to the IISA; and 2. Having contributed to the industry for three years as a practicing associate; and 3. Five years overall industry experience employed in the insurance or related industry in South Africa or the SADC region.

The requirements for each professional designation are: Licentiate 1. Achievement of the IISA Programme in Insurance with UNISA – this includes both the Introductory Programme and Programme in Insurance, currently at NQF Level Five; or 2. Achievement of the Higher Certificate in Short-term Insurance, SAQA ID 83526 with Milpark Business School, currently at NQF Level Five; and 3. Employed in the insurance or related industry in South Africa or the SADC region.

Associate 1. Achievement of the IISA Programme in Advanced Insurance Management with UNISA – this includes both the Introductory Programme and Programme, currently at NQF Level Six; and 2. Three years overall industry experience employed in the insurance or related industry in South Africa or the SADC region.

Foreign professional membership applications Any person applying for professional membership recognition outside of South Africa must submit a detailed academic record of achievement with their application form. Please note that these applications are restricted to persons working and operating in the SADC regions only.

Persons converting from the institutions with qualifications in insurance and risk management are granted exemptions as shown in table one.

Foreign institution

UNISA qualification

Exempted modules

Modules to complete

National University of Science and Technology – Zimbabwe

IISA Programme in Short Term Insurance – NQF Level Five

Legal Framework of Insurance

Legal Framework of Short Term

AND

Introduction to Risk Management

Three elective subjects

Risk and Insurance Principles of Life or Principles of Short-term Insurance

Three elective technical subjects

IISA Programme in Advanced Insurance Practice – NQF Level Six

Institute of Zimbabwe – Diploma in Insurance

IISA Programme in Short Term Insurance – NQF Level Five

Commercial Insurance Practice

Legal Framework of Insurance Three elective technical subjects

Institute of Zimbabwe – ACII

IISA Programme in Advanced Insurance Practice – NQF Level Six

Risk and Insurance and Insurance Broking

Principles of Life or Principles of Short-term Insurance Two elective subjects (depending on the modules completed)

Useful contact details Insurance Institute of South Africa Tel: 0861 00 4472 / (011) 341 9480 E-mail: info@iisa.co.za Website: www.iisa.co.za UNISA Centre for Business Management IISA Programmes in Insurance Tel: (012) 352 4228 Frank van der Meer

Tel: (012) 352 4377 E-mail: vdmeef1@unisa.ac.za Karin Vink - Admin Office Tel: (012) 352 4228 E-mail: iisa@unisa.ac.za Website: www.unisa.ac.za/iisa

Botswana Accountancy College Oscar Chomba, Insurance Course Manager Tel: (267) 395 3062 E-mail: oscarc@bac.ac.bw Website: www.bac.ac.bw

Milpark Business School Tel: (011) 718 4000 Email: ismail@milpark.ac.za Website: www.milpark.ac.za

INmag | 2012

23

I N S E TA

Get into

insurance with

INSETA The Insurance Sector Education and Training Authority (INSETA), established in 2000, aims to grow the pool and quality of scarce and critical skills in the insurance and related services sector, enhancing the sector and supporting the country’s transformation agenda. The authority embarks on skills development programmes and learnerships. To ensure that the sector is well transformed and skilled, INSETA works together with government, organised labour, business and civilians. It is committed to professionalising the sector by supporting it in its educational and skills development requirements.

24

INmag | 2012

Financial professionals As the insurance sector forms part of the broader financial services sector, there are many opportunities for financial professionals in insurance and their skills are in demand in most areas. This includes: • Accountants and chartered accountants • Business analysts and consultants • Financial economists and analysts • Internal auditors • Forensic auditors • Management accountants • Statisticians • Financial market dealers • Economists

To ensure that the sector is well transformed and skilled, INSETA works together with government, organised labour, business and civilians.

The scope of the sector

The insurance sector is made up of many different elements. The table below reflects the range of companies that operate in insurance to give you an idea of the make-up of the sector and just how broad a range of skills and services it encompasses.

10 Sub-sectors

Employer companies Levy paying

Unit trusts (or collective investments) Risk management

Non-levy paying 24

104

37

109

Insurance and pension funding, except compulsory social security

204

2 060

Life insurance

217

1 427

Pension funding

30

352

Healthcare benefits administration

55

142

425

2 269

23

118

Short-term insurance Funeral insurance Reinsurance Activities auxiliary to insurance and pension funding (including brokers/intermediaries) Totals

• Provides a wide range of career opportunities for managerial, professional, clerical, administrative and sales staff.

• Contributes more than one-fifth of the country’s GDP. • Is in a process of professionalisation and higher skills levels are required in all categories.

• Tends to employ people with relatively high qualifications.

• Competes with the rest of the economy for high-level financial skills.

Entry into my career in the insurance sector

• Requires 2 500 to 3 000 new employees to be trained on a year-on-year basis.

• At subject level, maths has become an important choice for those who are considering employment in the insurance sector.

• Most of the high-level financial skills require candidates with a sound mathematical background.

• Various new sector-specific qualifications have now been registered. For instance, BCom degrees include specialisations for the insurance industry.

• The industry employs a large number of graduates from tertiary institutions.

• Post-matriculation qualifications in business, commerce and management are becoming more important qualifications for the industry.

Insurance-specific professions • Financial and investment advisers • Insurance brokers • Claims assessors • Underwriters • Actuaries • Financial investment managers and fund administrators • Portfolio managers • Risk analysts, advisers and consultants

There are two options to gain entry into the insurance sector through learning programmes: • Complete matric and enter a learnership offered by the insurance sector.

• Apply for an internship in the insurance sector (for graduates who have completed their studies).

21

49

491

4 045

1527

10 675*

*The data for non-levy paying companies reflects only companies that have registered with INSETA.

The insurance sector:

Licensing requirements • Insurance brokers or agents who render financial services on financial products are required to apply for registration as financial services providers with the Financial Services Board (FSB).

• Licensing requirements are set in terms of the Financial Advisory and Intermediary Services (FAIS) Act 37 of 2000, and include criteria for personal character (integrity and honesty), education and training, competence and operational ability.

INmag | 2012

25

What is a learnership?

A learnership is a way of obtaining a qualification while working. The qualification that you will obtain will be a registered qualification, usually at NQF Level Four or Five.

University/college qualification

Learnership

Theoretical learning takes place.

Theoretical learning takes place.

No workplace exposure.

The learner is in the workplace and receives on-the-job training.

Learner pays the costs of tuition.

Tuition costs are paid for as part of the programme.

No stipend is paid to learner while studying.

The learner receives a stipend payment every month.

The learner obtains a qualification.

The learner obtains a qualification.

Sometimes the qualifications offered by tertiary institutions do not prepare the learner for the workplace.

Top learners have a good chance of finding employment in the workplace where they completed their learnership.

The qualification obtained by the learners is selected by the employer based on demand and, as a result, the learner is more prepared to enter the workplace.

How does a learnership work?

An insurance company will use a registered training provider to deliver the theoretical part of the learning for the qualification.

The trainer will either go to the workplace or the learners will attend a training programme run by the training provider off site.

How do I enrol in a learnership?

Most insurance companies advertise their vacancies for learners to join a learnership in the newspapers. A selection process is then followed to select the best learners.

Internships are a great way to test drive a particular career by getting exposure to the field in the workplace.

26

INmag | 2012

What are the requirements of enrolment?

These will depend on the qualification you are doing and the level of the learnership. Most learnerships in the insurance sector require the learner to have a matric with passes in English, maths or maths literacy.

Types of learnerships There are 46 learnership categories that have been developed and registered in the insurance sector. The most popular two learnerships are: • Financial services administrator – NQF Level Three, 120 points.

• Insurance administrator – NQF Level Three, 120 points.

What is an internship?

An internship is a learning programme that provides on-the-job training, usually for graduates who want to develop hands-on experience in a certain occupation. Internships are a great way to test drive a particular career by getting exposure to the field in the workplace. The employer also benefits as they can test drive a graduate for organisational and job fit. The intern will receive mostly practical product knowledge training.

The intern is paid a stipend by INSETA, if they are on an INSETA-registered internship.

Work-based experience programmes Some qualifications mostly Further Education and Training (FET) colleges and universities of technology require the learner to have practical workplace experience before the qualification requirements are met. Work-based experience (WBE) programmes are conducted to assist the learners to gain necessary workplace exposure in order to fulfill the requirements of their qualifications.

Learners participating in a WBE programme must complete a specified number of hours each year of worksite experience, in conjunction with a minimum number of hours of related training instruction.

Worksite experience can include company visits, job shadowing and other exposure to the workplace for a learner.

Worksite experience can include company visits, job shadowing and other exposure to the workplace for a learner.

INmag | 2012

27

Focus on actuarial science

It is doubtful that the word ‘actuary’ has ever been called out by a grade one learner responding to the familiar: what do you want to be one day?; but according to a 2010 Careercast.com study, it is the best job to have in the US.

The wages are high, the working conditions are relatively relaxed and given the low numbers of actuarial professionals in South Africa, the skills are in high demand.

Out of 200 careers, measured against each other in terms of stress, working environment, physical demands, income and hiring outlook parameters, the job came out tops. That said, it is a career that many people don’t know much about – if anything at all.

According to the Actuarial Society of South Africa, an actuary is an “expert in the analysis and modelling of situations involving financial risk and contingent events”. In other words, it is someone who is employed primarily in the insurance industry and other financial services sectors to calculate financial risk.

The wages are high, the working conditions are relatively relaxed and given the low numbers of actuarial professionals in South Africa, the skills are in high demand.

Young unemployed South Africans from disadvantaged backgrounds with the potential to become actuaries will get an unexpected boost thanks to an innovative partnership between INSETA and the South African Actuaries Development Programme (SAADP). The deal will see high-potential

28

INmag | 2012

As the insurance market serves many different clients, ranging from individuals to corporates, across many industries, everything that affects the insurance industry also impacts the wider economy. university students from second year and up receiving financial and motivational support to gain their actuarial science qualification.

According to Cyril Ramaphosa, chairperson of the SAADP, the move is inspired by an urgent and critical lack of actuaries in the economy, which could potentially undermine the insurance sector.

“Actuaries are actively involved in many areas of insurance; for example, ensuring that an insurance company holds sufficient reserves and capital in order to meet its financial obligations to policyholders. As the insurance market serves many different clients, ranging from individuals to corporates, across many industries, everything that affects the insurance industry also impacts the wider economy.

The shortage of actuaries in insurance impacts the insurance sector’s ability to function optimally, which inevitably affects the industries which depend on insurance,” commented Ramaphosa.

He added that INSETA’s policy of transformation is in perfect alignment with the goals of the SAADP to produce more qualified black actuaries in South Africa.

INSETA is paying all fees for second year, third year and honours SAADP students in the three participating universities: WITS, Stellenbosch and the University of Cape Town.

INSETA CEO, Sharon Snell, said that financial aid, while a crucial enabler, is not sufficient on its own: support is vital as well.

“Actuaries are in the top tier of the professional finance sector; the acceptance criterion to study actuarial science is incredibly high and the work incredibly intense. But once accepted, learners are suddenly left to their

own devices, and many cannot cope – especially those from disadvantaged backgrounds who are unused to the environment shift. This is where the SAADP comes in, offering the support these students need.

The organisation identifies needs and provides assistance, ensuring support to and success of the learner,” said Snell.

The SAADP intervenes in three different areas in order to achieve its objectives, namely academic development, life skills and financial support.

The academic support aspect of the programme is managed by programme co-ordinators at the respective campuses in conjunction with lecturers, tutors and student mentors. The comprehensive bursaries offered by the SAADP to their selected students cover four years of study.

Ramaphosa said that, in addition to academic development, the SAADP realises that it is crucial to equip students with life skills that will enable them to deal with the challenges that are encountered when preparing for the corporate world. To fulfil this mission, Alexander Forbes has designed various training programmes to equip students accordingly.

SAADP has organised that willing, qualified actuaries from different organisations volunteer their services to mentor undergraduate students, advise on career development, expose the students to the workplace and prepare them practically through the transfer of their skills.

INSETA, in addition to its extensive financial support, is organising experiential training for SAADP undergraduate students to expose them to the real world of work, as well as workshops aimed at developing professional skills for SAADP staff.

INmag | 2012

29

S ou t h A frican I nsurance A ssocia t ion

Sustainability has become a buzz word over the past few years, as the world wakes up to our responsibility to look after the world’s resources.

SAIA

The voice of the industry

The South African Insurance Association (SAIA) is the voice of the shortterm insurance industry, representing most of the short-term insurance companies in South Africa. It represents the industry at all levels and with all stakeholders, to ensure a sustainable and dynamic short-term insurance industry for the benefit of all South Africans.

30

INmag | 2012

The SAIA has taken a strategic approach to various issues facing the short-term insurance industry.

Below is a snapshot into some of the projects it is involved with.

Treating Customers Fairly The launch of South Africa’s Treating Customers Fairly (TCF) initiative, which is a Financial Services Board (FSB) initiative, is a step towards ensuring that specific, clearly articulated fairness outcomes are demonstrated by regulated financial institutions. TCF will contribute to ensuring that business is conducted fairly and responsibly with the best interest of the consumer in mind. The SAIA is currently facilitating, through various channels and committees, a contribution to the development of the TCF regulatory framework. The SAIA supports TCF and that the fair treatment of customers is embedded within the culture of the financial services industry. TCF contributes towards creating a positive image for the industry and boosting consumer confidence in insurers and financial services providers.

S is for sustainability Sustainability has become a buzz word over the past few years, as the world wakes up to our responsibility to look after the world’s resources. The insurance industry needs to take into account social and environmental issues when conducting business, too. For instance, as the biggest purchasers of electric geysers in the country, insurers have the opportunity to consider their role in looking to alternate energy sources. So when a client puts in a claim for a burst geyser, insurers can help to replace it with a solar-powered geyser.

The SAIA has set up different working groups to investigate these possibilities, comprising engagement with a host of different stakeholders – from plumbers and electricians, to various associations and government departments.

Insurance companies have a tangible link to social and environmental issues such as crime and climate change (for example, changing weather patterns mean more claims arising from floods), and need to start managing these differently to ensure the industry’s sustainability.

As the biggest purchasers of electric geysers in the country, insurers have the opportunity to consider their role in looking to alternate energy sources. So when a client puts in a claim for a burst geyser, insurers can help to replace it with a solar-powered geyser.

Insurers are applying a creative mindset to the development of these kinds of alternative solutions, to cater to a modern client base; people who understand the major environmental, social and governmental risks that can affect our future and the communities in which we are situated.

Motor matters Forty per cent of all premium income in the shortterm insurance industry comes from motor insurance.

However, the high levels of vehicle crime and accidents push up the price of premiums, making motor insurance unaffordable and unsustainable.

The SAIA has tackled the issues of vehicle theft and the cost of repairs, as a result of accidents. Efforts by the SAIA and various stakeholders between 2002 and 2007 have seen vehicle crime decrease by 50 per cent, through enhanced vehicle security and technical training. With car accidents now accounting for 70 per cent of all motor claims, one of the major claims drivers is repair costs. Insurers spent R16 billion on motor repairs in 2010.

The SAIA is again engaging with various stakeholders, such as parts manufacturers and motor body repairers, to bring down the cost of repairs, by allowing consumers the choice of what kind of car part they use for a repair. Many car manufacturers force drivers to replace parts with that specific manufacturer’s parts, even when the only difference between the original part and a generic part is the logo – and, of course, the price. This is particularly true of non-safety critical features of the car. A simple bumper bashing could run into the thousands, with a Porsche exhaust costing upward of R15 000, as an example. Since insurers have to pay for these repairs, this ultimately leads to increased premiums, which means the consumer loses out.

For quality assurance purposes, the SAIA is hoping to establish standards for the quality of generic parts and hopes that the success of this process will curb the cost of repairs, bring down the price of premiums and encourage the large numbers of uninsured drivers on South African roads (70 per cent of drivers) to purchase cover.

INmag | 2012

31

Debbie Donaldson,

general manager: strategy and planning How did you decide on your course at university?

During high school I spoke to people who were practicing what I thought might be interesting, and I made a choice based on what I thought would play to my natural strengths.

Barry Scott, CEO Having studied electrical engineering, and then working as the MD of a computer company, how did you come to enter the insurance industry?

My IT company provided products and services to the SAIA, which approached me to take over as CEO after I closed the business. I decided to accept the job for a short while to allow me time to find something else to do. Well, the short while has turned out to be 18 years so far.

Has your engineering degree proved useful in the financial services industry?

I believe that an engineering degree is a wonderful background for the business world. While the degree may seem to be very specific, there are many areas of general skills that are covered.

What advice would you give those who have their sights set on one day becoming a CEO? Work hard and always have an eye out for opportunities. Being a CEO demands a wide spread of skills, so make sure that your early experience is as varied as possible and don’t get stuck in a narrow niche too early in your career.

How has the working world changed since you entered it and what impact does this have on choosing and planning a career?

The challenges at the sharp end of business are enormous, constantly changing and highly complex.

When choosing a career, make sure it is relevant to society and then make sure that the skills you obtain are diverse enough to participate in businesses that face diverse challenges.

Why do you think a young person should consider a career in the industry?

The insurance sector holds many opportunities for new entrants, not just in the specialist underwriting and claims areas, but in many other facets of business such as accounting, IT, public relations and human resources. The industry remains just as essential today as it was 300 years ago.

What do you do for fun?

What gives me most pleasure is the historic car racing scene. My wife Michelle and I currently own and race six historic cars, ranging from Formula 2s, a 1971 British sports car and two Ford Escorts.

Some of these we have built up ourselves. I have recently acquired a 30-year-old Formula 2 racing car, which last turned a wheel 25 years ago. This will be at least a two-year nuts-and-bolts restoration job before it can race again. I am also the chairman of Historic Racing South Africa, which at 250 members is one of the largest motorsport clubs in South Africa. And then there is the camping, overland trips, bird-watching, golf‌

32

INmag | 2012

Charles Hitchcock, general manager: operations

Charles Hitchcock, general manager: operations Was it difficult deciding on your course at university or had you always wanted to study accounting?

I studied accounting and finance as I always wanted to own a business, which I have not yet achieved. It is informative and enjoyable and covers the business spectrum fairly well.

How did you get to where you are today and how has your past experience proved useful?

All experience is valuable and makes up the sum of your talents today. After completing my articles I spent some time in the wholesale and trading environment before entering the insurance arena.

What advice would you give those who are unsure about what they want to study or whether they want to study at all?

Follow your passion, as your chances of success are much higher; and as soon as possible start your own business.

What advice would you give those who are unsure about what they want to study or whether they want to study at all?

As a self-confessed career woman, I can only urge to give yourself the gift of a qualification and the opportunity to differentiate yourself in the market. It does not have to be university; there are fantastic colleges and learning institutions that can help you get a formal grounding in what you want to do.

Start by determining what you enjoy. Match that to a career and speak to people who actually have that career before you make up your mind.

If you could go back in time and tell your 17-year-old self anything what would it be?

Take the time to be 100 per cent present in whatever you do. Whether you are studying, watching a movie or chatting with friends, absorb and appreciate the moment.

How has the working world changed since you entered it and what impact does this have on choosing and planning a career?

With technology being freely available and the globe being so small as a result, innovation is going to be required on all fronts.

Entrepreneurship and the ability to run your own business are important.

Multi-skilling and being able to work with different cultures and personalities is also becoming increasingly important.

Why is insurance an exciting industry to be in?

We provide a meaningful service to individuals and businesses; we offer insight into multiple industries; we provide a diverse range of opportunities; and you can build a career in insurance and change jobs while you do it.

What do you do for fun?

I love sitting on my veranda and talking to my family in the evenings; dancing; reading; indigenous gardening; hiking; late afternoon lunches with friends; and I volunteer some time to work with various groups experiencing difficulties.

If you could go back in time and tell your 17-year-old self anything what would it be?

Get a qualification and immediately start a business.

Why is insurance an exciting industry to be in?

Short-term insurance is a very interesting industry and you can utilise many graduate and post-graduate directions within the industry, from engineering to languages to accounting, economics or actuarial science.

What do you do for fun?

A little gardening and a lot of running after children.

Work hard and always have an eye out for opportunities.

Suzette Strydom,

general manager: technical Having worked at legal mediation company, LIPCO (Legally Independent People’s Corporation) for over 16 years, how did you join the insurance industry and why did you make that change?

Like most others in the industry, I ended up in insurance by default but have never looked back. It was a natural evolution, as I started in a pure legal environment and realised how many consumers do not have the financial means to afford legal advice and assistance. Accordingly, I became involved in legal expense insurance.

What advice would you give those who are unsure about what they want to study or whether they want to study at all?

I would definitely encourage further studies, even though it is a challenge to finish your studies and not give up halfway. Most universities and institutions offer a service to assist students with identifying the most suitable course for them.

My mom always said that once you have your degree or diploma, no-one can take it away from you.

Can anyone work in insurance or is it better suited to certain personality types?

There are many different fields in the insurance industry, such as actuarial science, product development, complaints handling, claims and risk assessment, call centre management and legal and compliance – to name a few. I am of the view that the insurance industry can result in huge potential and growth, not only for graduates, but also nongraduates of all personality types.

What do you love most about working in insurance?

The fact that doing my part makes a difference to the lives of others, applying my legal knowledge and the fact that I remain challenged. I enjoy the interaction on all levels with different stakeholders, from government and associations, to our member companies.

What misconceptions do people have about the insurance industry and those working in it?

There are perceptions that skelms work in the insurance industry and that the insurance industry collects premiums but is reluctant to pay out claims. The establishment of the various ombud schemes assists with these concerns, while the South African Insurance Crime Bureau (SAICB) plays a huge role in combatting fraud in the insurance industry.

Viviene Pearson,

general manager: projects Having studied a BA in communications and BA honours in political science and journalism, how did you enter the insurance industry?

Following a career path from a junior diplomat to a public relations officer and then a freelance communications practitioner, I ended up becoming a journalist for an insurance industry magazine. Because of my knowledge of and insight into insurance after writing on all aspects of insurance, as well as the relationships I built with important role players in the insurance industry, I was offered a job as corporate affairs manager at the South African Insurance Association.

What advice would you give those who are unsure about what they want to study or whether they want to study at all?

Start with something general, see how your interest grows and, if you can, fine tune your degree accordingly. Speak to people about their jobs, see the career specialist at universities or other colleges and find a place or institution that offers something in your area of interest. Having a qualification has immense value, as it shows people that you can work hard towards a goal. But it’s important to find something you can be passionate about. Passion and hard work are the keys to success.

If I’m passionate about language and the arts, could I study a BA and still get a job in insurance or should I rather study a BCom? You can get a job with a BA or a BCom, even if a BCom might open more doors for some jobs in the industry.

Outside achievements and work experience gained while studying are also important. For instance, did you become the president of a committee at university, or perhaps the editor of a house paper?

The insurance industry has various initiatives that are at times overlooked, including a large consumer education initiative, teacher awareness initiatives and a yearly donation to Business Against Crime South Africa (BACSA).

How has the working world changed since you entered it and what impact does this have on choosing and planning a career?

The world has opened up to different career paths and ways of doing things. This environment creates opportunities, but it also makes it more difficult to stand out. What will distinguish you from the next person is hard work, guts, courage, doing what you do well, never giving up and passion.

What do you do for fun?

I have started writing a book and this remains a work in progress.

I enjoy movies, reading and spending time with my nine-year-old son. For exercise I walk my dog (Lilly, a golden Labrador). Due to time constraints, I recently gave up playing bowls.

What do you do for fun?

I read fantasy novels and psychological thrillers; watch sport, including football (English Premier League and La Liga), cricket and rugby; listen to hard core heavy metal music and get involved in my son’s heavy metal band activities.

INmag | 2012

33

34

INmag | 2012

protecting what matters

Z

Z

A TO Z INTRODUCTION

The secret of success is to do the common things uncommonly well.

A TO Z INTRO In this section, we provide you with an introduction to some of the top insurance companies in our vibrant industry. In their own words, they give you a feel for their organisation; who works there; what employment opportunities, internships and bursaries will be available to you; and how to contact them.

They are looking to the next generation of bright young things (that’s you) to take the financial services sector to new heights and build a successful, sustainable insurance industry in South Africa.

INmag | 2012

35

local is lekker 36

INmag | 2012

E

E

E TA N A

Etana is a truly South African company: diversified, innovative, optimistic and down to earth.

ETANA

INmag | 2012

37

E TA N A

A whole world

new

In a noisy little coffee shop in the tower district of London an exchange took place that arguably changed the world forever.

It was somewhere in the 1600s in Edward Lloyd’s coffee house, a favourite haunt for merchants, ship owners and sailors. Instead of trading money for goods as usual, this agreement saw one person pay for a piece of paper with a promise written on it. The contract was that if the owner’s goods were lost due to the ship sinking or it being stolen by pirates – think Captain Jack Sparrow – the other person would reimburse him for the value of the goods. If the goods made it safely to port, he would keep the money and the promise would lapse. Savvy? That’s right; that’s the conception of the backbone of modern economy: insurance.

From humble beginnings The coffee shop later became the renowned Lloyd’s of London, while insurance became a financial service that makes running the modern economy possible. It allows businesses and individuals to minimise their financial losses should catastrophe strike. This protection allows them to organise business activities and plan budgets with added security. Without insurance many aspects of a free market economy would simply not function.

For example, before the bank lets you buy a car or a house, you need to provide proof that you’ve taken out insurance on the item. It’s the same with applying for finance on anything these days – from shipping goods across borders to constructing highrises or residential property.

Insurance helps people manage their risks, by charging a premium in exchange for covering the cost of losses in an unforeseen eventuality.

In short, insurance is a policy that will pay money to the policyholder under certain conditions (normally

38

INmag | 2012

something bad, like an accident).

This helps companies and people go about their day, and even supports new ventures and business activity.

It’s also a very lucrative business that helps grow more business by investing. Mature insurance markets generate huge premium flows and massive pools of useful capital. For example, insurance companies and pension funds own around 20 per cent of the ordinary shares in listed companies in the UK, far more than any other group of investors.

What to study Want in on the insurance gig?

We can’t blame you. It’s exciting and worthwhile. The modern insurance operation is an extremely complex organisation, reflecting the multidisciplinary nature of insurance itself. There are so many technical and professional specialist activities: actuaries, underwriters, technical claims managers, risk surveyors, marketers, investment managers, economists, accountants, IT specialists, HR experts, project managers, engineers, lawyers,

event planners, entrepreneurs, part time models and actors … the list is endless. In insurance, there is a place for everyone. If you like cycling, why not become a specialist cycling underwriter? Or if you love music, why not insure events or musical instruments? Insurance touches every imaginable part of our daily lives.

If you’re interested in building a career in insurance, attending a short course or acquiring a qualification is advisable. This will give you the practical skills needed to work in the industry and several training providers offer these. Degrees in risk management and risk and insurance are obtainable through Unisa and Wits. Wits, for example, will teach you insurance from a management level.

What the Etana Academy offers Earning while you learn is another option. Etana has one of the highest paying learnership programmes in the financial services industry in South Africa (R3 600 a month). You could qualify to come and train at our

academy for a year and we’ll teach you all aspects of insurance while you get valuable work experience. And, at the end of your year, you will receive a nationally recognised qualification and could even be offered fulltime employment.

Our academy runs short courses (free for our brokers and staff) that provide practical skills and knowledge about the nuts and bolts of our business. We provide study loans for all our staff (degrees, masters, MBA, insurance studies, Word, Excel, PowerPoint and so much more) and arrange scholarships. Recently, an Etanan spent three months in Munich, Germany learning all about insurance and reinsurance and this year we will be sending someone to spend three weeks in the UK. 2012 will see our academy launching the first ever online insurance qualification at NQF level 5. Visit www.etana.co.za to find out more and get in touch.

Industry inside info

The industry is currently in dire need of new actuaries and black-owned service providers, for example panel beaters.

Why insurance is fascinating

Insurance is not soap and it isn’t baked beans or a chocolate bar. It’s a rather costly piece of paper with a promise to pay for something that might or might not happen.

It offers no immediate consumer satisfaction and is at best a painful necessity. Insurance marketers and salespersons are therefore faced with huge and unique challenges.

Success stories Having aced her matric, Teshania Ajodha from Lenasia thought finding a job would be easy.

After a year of sitting at home though, she applied for the Etana learnership programme and was accepted. Never in her wildest dreams would she have guessed where it would take her in such a short space of time. Teshania got her qualification and one-year experience, but was also offered fulltime employment in the training department.

Now, Teshania spends her days planning events, hopping on planes, travelling all over the country meeting interesting people, and recruiting and motivating new learners.

Karabo Nguyuza, a beautiful, disabled lady, was about to give up all hope after completing other learnerships without being offered fulltime employment. Her winning smile and attitude, however, earned her fulltime employment with Etana and her year of learnership culminated in her being awarded the Young Leader Award at the National Disability Awards.

Bongani Khoza joined our learnership programme in 2007.

He nailed it and soon worked in the claims department. These days, he visits factories and shopping centres, to determine whether the businesses have the right fire protection and security measures. He evaluates risks and determines what could go wrong, before writing a report advising our underwriters on whether we should take on the risk and under which conditions. Bongani is studying for a risk and insurance degree which Etana is funding.

Looking after Etana’s market research and intelligence, Gregory Scott joined the company midway through 2011. He completed his masters in international studies, which included modules in international business management and political risk analysis, during 2010.

During his studies Gregory found his way into the financial services sector where he did an internship at Aon Re, now Aon Benfield. After he completed his studies Gregory returned to Aon to work in the Aon Crisis Management Operations Centre (AcMoC). Here he was involved in producing political risk reports.

Gregory is now enrolled in Etana’s Graduate Programme. During the course of 2012 he will gain further experience in the insurance industry where he hopes to pursue a number of diverse passions. In the short-term his sights are set on the renewable energy sector.

INmag | 2012

39

40

INmag | 2012

SMART RISK SOLUTIONS

LO

LO lion of africa

LION OF AFRICA

A strong team spirit.

INmag | 2012

41

We work hard

& play hard

Working for a claims team can be stressful and draining, but the job can be quite enriching, educational and fun. Here, Lion of Africa’s claims team members share their experiences of dealing with accidents and explain how they cope in a stressful environment. While it’s hard work, INmag learns that working in the field can be entertaining and it’s all down to team effort and merriment.

October 2011was a warm bright month for most, but to the claims negotiators at Lion of Africa (LOA) it was not a positive one. With many losses suffered, there were murmurs of “Black October” in the corridors.

The month was almost over and there was some hope of respite, but then the dreaded call came.

It wasn’t good news. A fire had ripped through premises, causing severe damage to the building structure and destroying the contents. To add insult to injury,

42

INmag | 2012

the insured was celebrating its birthday month and had ordered bulk stock for the occasion.

A loss adjustor happened to be driving past the insured’s premises at the exact time of the fire. A few frenzied calls later, he was appointed to attend to the assessment of the fire on the spot.

On arrival at the blackened gates, the loss adjuster noted that several firefighters were dousing the last remnants of the fire to

prevent an adjacent building from suffering the same fate. Although the fire was now under control, the warehouse appeared to be severely damaged with only a small section of the roof left and all the contents, including truck loads of stock, either having been destroyed by the fire or damaged beyond repair due to the water during the firefighting operations.

The fire was discovered by an employee, who raised the alarm and all staff, management and

building. It was also concluded by the fire investigators that the fire had originated as a result of an electrical failure.

Counting the cost All in all, the loss was huge. The claims negotiator was now able to estimate the loss at a total of R9 million. Material damage, which refers to the property, was estimated at R8 million and business interruption, which pays out on losses following interruption of or interference with the business as a consequence of the damage, was estimated at R1 million.

On 2 November, the reinsurers were informed of their participation in the loss. Reinsurance is insurance that is purchased by an insurance company from another insurance company (reinsurer) as a means of risk management. A portion of the risk is transferred from the insurer to the reinsurer.

A couple of days later on 15 November, further meetings were held between the insured, the senior claims manager, the claims negotiator and the loss adjustor. There was a brief inspection of the warehouse, a review of the circumstances of the fire was discussed, and plans to mitigate the loss were reviewed.

The claims negotiator drafted an agreement of loss in the amount of R7.5 million.

After much deliberation between the members of the claims team, it was concluded that the insured had suffered a genuine loss and, as a result, liability was accepted on 20 December.

Paying out the insured is not where obligations necessarily stop. In this instance the insurers helped in securing alternative premises in close proximity to the original warehouse.

This enabled the insured to bring in bulk stock, which resulted in zero disruption to the trading operations.

customers subsequently sprang into action with the firefighting equipment on hand.

Luckily the adjacent building had been saved from the fire but as it was on a slope it was at risk of water damage which was rapidly moving towards it. Moisture extraction services were appointed the following day to pump the water from this second storage facility to prevent further damage to the remaining stock. An electrician

replaced the damaged cables to ensure that the refrigeration system was restored in an attempt to reduce the obvious business interruption section of the claim.

The loss adjustor began to conduct interviews and request quantum documents, while the claims negotiator discovered, to his dismay, that the stock levels at the time of loss were in the region of R8 million. With no time to waste and millions hanging in the

balance, the negotiator decided to appoint an alternative loss adjustor with fire claims experience. A specialist would be able to arrive at a more speedy resolution and prevent an extended business interruption claim.

The cause of fire was initially investigated by the fire brigade and the South African dog unit and both came to the same conclusion. The fire was caused by a malfunction or short circuit in the wiring in the roof of the

The claims negotiator drafted an agreement of loss in the amount of R7.5 million bringing down the original estimate by R1.5 million.

On 29 December 2011, the claim was settled to the insured in full and the claim reached its finality on 4 January 2012 when a request for payment from the reinsurers was completed.

With a happy ending, this book could now be closed to make way for yet another claims-filled day in the life of a claims negotiator.

INmag | 2012

43

There is a strong team spirit among the members of the claims team, which continues with each new addition to the family.

Revenge is sweet It is widely known that the prankster arrives early and removes his shoes so that he may ‘think on his cottoned feet’.

One colleague got revenge by hiding the prankster’s unattended shoes. He spent half the day searching for his missing attire, to no avail. As the day drew to a close and each member of the claims team walked silently out of the office, he found himself stranded.

We assume his perseverance eventually paid off. The next day, he calmly strode into the office with shoes on and ensured that they remained on his feet for the rest of the day.

Tall tales Reading a claim form comes as second nature to the team, but sometimes the description of a motor vehicle collision can provide some amusement.

One insured said he had been bewitched to see a goat in the road, which had caused him to swerve into the third party’s path of travel.

Another was convinced that a stationary pole had collided into him. It makes it interesting when the recoveries team somehow needs to figure out how to sue a wayward goat or a ‘lively’ pole.

LOA’s staff is diverse and the experience of the individuals spans over decades. But the company also hires fresh, new learners.

Contributors: Bianca McGrath Conrad Reats Chantal Balla Zodwa Zwane Tebello Moloi Cecilia Daniels Regan Duarte Elaine Oakes Andrew Segale Claudette Goliath Llewellyn Titus

44

Adding humour to stress Processing claims is a task that invites high levels of concentration and occasional stresses for even the most resilient people. This particular claims team understands that in order to prevent themselves from appearing almost too focused or too mundane to the rest of the business, it is imperative that they enjoy regular spurts of plain old silliness.

The camaraderie between each and every one of the individuals ensures that not even your personal belongings are sacred. A very brave young soul once decided to put his acquired knowledge of stolen vehicle claims into good practice. One day his to-do list included sneakily removing a fellow colleague’s car keys from his desk and moving the hapless individual’s vehicle to a more prominent spot in the company’s parking lot. Naturally, that spot belonged to a member of management.

Later, to the vehicle owner’s amazement, he was politely requested to remove the vehicle or else. It appeared that the prankster had won the first round.

INmag | 2012

These are the ties that bind. There is a strong team spirit among the members of the claims team, which continues with each new addition to the family. On arrival, a cub is instructed to introduce themselves to the rest of the team in order to deduce whether or not they are the perfect fit and so the team building continues.

The claims team doesn’t need a reason to celebrate, which ensures that the social budget is always put to good use and is often bursting at the seams. With so many impromptu gettogethers, the coffers sometimes run dry, but that never stops anyone from contributing to a gathering to ensure that the fun continues.

Hungry for knowledge In spite of the fun, everyone understands the seriousness of the claims environment.

Taking their lead from the senior manager of claims services, various team members have embarked on further studies in the insurance sector. There are currently two associates, licentiates and one member studying towards his fellowship.

LOA’s staff is diverse and the experience of the individuals spans over decades. But the company also hires fresh, new learners.

There are new mothers, newlyweds, parents, grandparents and singletons to complete the crowd. Above all, the staff members have big hearts that reach out to ensure that the LOA’s claims team is on its way to insurance domination.

46

INmag | 2012

LEADERSHIP, KNOWLEDGE, SOLUTIONS… WORLDWIDE

A

A

M A R S H I N C O R P O R AT I N G A L E X A N D E R F O R B E S

MARSH incorporating ALEXANDER FORBES An ideal company with whom to see the world.

INmag | 2012

47

M A R S H I N C O R P O R AT I N G A L E X A N D E R F O R B E S

Colleagues can share their expertise with someone just across the floor or across the world, using Internet forums such as blogs or video-logs.

48

INmag | 2012

Innovate

insurance with Marsh University Marsh, the world’s leading provider of risk management solutions, is a truly global enterprise and an ideal company with whom to see the world.

Marsh University has become a veritable world of documented and personal knowledge, created and updated exclusively by Marsh colleagues daily.

Operating in over 100 countries across all global continents, some 52 000 Marsh & McLennan Group colleagues engage with all types and sizes of corporate clients and with different national insurance markets, while encountering the world’s wide variety of insurable risks and major loss events.

Contributing to Marsh University means sharing your knowledge, experiences and interests with fellow colleagues (whether through penning, recording blog-posts or participating in conversations), and receiving global responses in return. You are never isolated and the site is in action 24 hours a day.

The inhouse Marsh University platform, which was honoured by US InformationWeek as a top innovator in 2011, enables Marsh staff worldwide to continuously connect, ask, share, learn, search, publish and view the enormous wealth of knowledge and experience offered by colleagues.

On Marsh University, colleagues can share their expertise with someone just across the floor or across the world, using Internet forums such as blogs or video-logs.

No matter how long or short a period you’ve worked at Marsh, Marsh recognises that every colleague has valuable knowledge, expertise and experience to share. Everyone is, therefore, regarded as both a learner and a teacher.

connect and learn about various topics, from personal development to career growth or practice-specific information.

Every colleague has passions, experiences or insights to share and, as an organisation, Marsh sees it as true business success when colleagues can and do share their knowledge and ideas with each other.

Marsh is committed to ensuring that its colleagues have daily access to the best information, tools and individuals to support their professional and personal development and to service their global clients. www.marshuniversity.com.

Marsh University reinforces Marsh’s commitment to being an environment where colleagues can

INmag | 2012

49

Winston Skosana managing director of power, public enterprises, energy and education practices for Marsh Africa

Winston Skosana was president of the Insurance Institute of Gauteng (IIG) during 2011 – its centenary year. He told INmag about his entry into the industry, why it’s such an exciting one to be in and Marsh Africa’s involvement with the 2010 Soccer World Cup. Why did you choose insurance as a career and how did you enter the industry?

I didn’t choose insurance; insurance chose me. Growing up, I wanted to be an actuary but didn’t secure the points required to be accepted into this degree at the University of Cape Town. The insurance industry was looking for new people at the time and I went for an interview at First Bowring Insurance Brokers. I started as a trainee while studying a BCom in risk management part-time through UNISA, in conjunction with a diploma in insurance at the College of Insurance.

How did you get to where you are today and how would you advise those who have similar aspirations?

I’ve essentially been with one organisation my entire career, as First Bowring Insurance Brokers was acquired by Marsh in 1999. This year will be my 19th year of unbroken service. I’m one of the few

50

INmag | 2012

home-grown talents in the firm, who has developed from graduate trainee to executive level. This shows that if you stay focused and dedicated, you can rise up through the ranks. I think it’s a combination of factors, including commitment, hard work, dedication and an eagerness to learn and grab opportunities. I would advise always having an inquisitive mind and seeking wisdom from those who are in more senior roles.

Do you think it’s better to stay with one company as you did, or move around?

There is no right or wrong answer as these are simply two different approaches.

Some people change companies until they reach the top, while others work their way up within the same company. The advantage of the latter is that people in the company can associate with you and trust that you know the company. When you have been with a company for long enough, you acquire institutional memory that enables you to understand the issues and challenges that the organisation has dealt with over the years.

You understand the company culture and can reflect on how it has changed. It can happen that when someone comes in from the outside

they are culturally rejected by the organisation, simply because they do not have that same institutional memory.

How has the insurance industry changed since you entered it?

Clients have become more aware and demanding in terms of what they require from service providers. They have more negotiating power and providers have to demonstrate that they are continuously adding value to their clients. A number of stakeholders in the business need to be satisfied, including buyers of insurance services and procurement and legal departments. There are also issues of transformation, performance based contracts, fixed term agreements, etc, which were not there when I started working.

What advice would you give school-goers who are unsure about what career to pursue?

Take time to understand yourself first; your drive and your passions. Look at what a job entails and whether your character and values matches that. For example, if you are the type of person who likes to sit in an office and do things by yourself, then you shouldn’t pursue a career that entails servicing and engaging

No one was born a CEO, CFO, etc. The world provides us all with a platform to become what we aspire to be. Rather your plans fail than you fail to plan at all.

with clients. Remember most of your day is spent at work; if you are unhappy and frustrated then you will become destructive to the organisation and yourself.

Why do you think insurance is an exciting industry to be in?

Insurance is exciting and dynamic because it applies to every sector of the economy, including agriculture, mining, finance or the government. The service we offer allows us to interact with different stakeholders across different sectors and parts of the economy and learn about a number of different industries and organisations.

How is it important to the South African economy?

The insurance industry is one of the largest employers in the economy and the volumes of premium inflow contribute to the development of the economy. Insurance itself protects people against unforeseen events. For instance, if there is a fire that destroys a business, insurance provides an opportunity to continue with the business after the event.

Marsh Africa held the 2010 Soccer World Cup risk management contract.

What was that like?

It was a lot of fun and an honour to be a part of making history in the country and economy. It was also an eye-opener in terms of the number of risks associated with an event of this magnitude.

What would people be surprised to learn about you?

I like cooking, especially a traditional Sunday lunch; and in my spare time I’m a latent poet.

What message do you have for South African school-leavers?

Failure is delayed success. When one door closes, another one opens. I wanted to be an actuary, but didn’t end up on that career path and I’m still enjoying what I’m doing.

In life you become what you were not in the past. No one was born a CEO, CFO, etc.

The world provides us all with a platform to become what we aspire to be. Rather your plans fail than you fail to plan at all.

TOGETHER WE CAN 52

INmag | 2012

M

M

me t ropoli t an

A wealth of opportunity for careers across the spectrum.

METROPOLITAN

INmag | 2012

53

me t ropoli t an

Help those most in need to improve their financial situation by being part of our great Metropolitan team.

About

Metropolitan Metropolitan is part of MMI Holdings, the third largest listed life insurer in South Africa following the merger of Metropolitan and Momentum in 2010.

Even though Metropolitan and Momentum now form part of one family, the two businesses operate in two distinct target markets. Metropolitan has a sterling track record and keen understanding of the low to middle income market, while Momentum’s success in the middle to upper income group has been equally favourable.

Touching 10.2 million lives in South Africa, the Sunday Times Top Brands Survey 2011 rated Metropolitan as the third most recognised long-term insurance brand in the country. The business model is uniquely structured to deliver innovative, appropriate and affordable financial services to the mass market.

Be part of something big!

There is a wealth of opportunity for careers across the spectrum – from becoming an actuary, to an IT specialist, to a financial adviser. You will have the opportunity to work with and learn from well-known stalwarts of the industry that have helped shaped the insurance business as we know it today.

As a financial adviser you will partner with your customers on their financial journey to address their expressed and unexpressed needs. A custodian of financial advice and financial education, you will also deliver innovative, appropriate and affordable financial services to the low and middle income earners of South Africa.

54

INmag | 2012

Metropolitan employees have access to a number of benefits including a pension fund (after 12 months), medical aid, group life cover and commission-based remuneration.

What do you need to study to become a financial adviser?

Candidates will be required to obtain the relevant Financial Services Board (FSB) approved qualification and have completed the required regulatory exams to provide advice to customers.

Metropolitan will provide support in acquiring the necessary industry and product-related training.

We provide all new recruits with a proper introduction to life assurance, professional training and continuous support thereafter.

We use a ‘phased-approach’ with all development programmes, including: 1. Orientation - ensures that the employee has the necessary tools and resources.

2. Core development - focuses on the knowledge and skills required to do the job successfully.

3. Advanced development – focuses on the knowledge and skills that a new recruit needs to further enhance his/her career.

4. Academic development path - employees who meet the qualifying criteria can continue with formal education via an approved educational institution.

Essential attributes of a financial adviser include:

• Entrepreneurial skills • Relationship-building skills • Strong work ethic and high levels of integrity • Dedication and discipline • Ability to be independent and to be able to use their initiative • Good planning and time management skills South Africans have one of the lowest financial literacy levels in the world. This is your opportunity to help those most in need to improve their financial situation by being part of our great Metropolitan team.

Metropolitan salespeople are not only an extension of the brand but key ambassadors in delivering financial education to customers.

Metropolitan’s sales champions are recruited from the communities they live in. In this way, they are not only closer to the community they serve but are part of it.

To find out more about becoming a Metropolitan sales champion, visit www.metropolitan.co.za.

Remember, we promote a culture of accountability, excellence and innovation. And we celebrate our diversity because it’s what makes us unique. So, go on, become part of something big! Join Metropolitan today.

More t h a n j u s t a g re a t co m pany to wo r k fo r

A step in the right direction with Metropolitan’s actuarial bursary programme

We believe in giving the right actuarial students a foot in the door to start a successful career. Each year, Metropolitan grants generous bursaries to highly self-motivated achievers: • Matriculants who want to study to become an actuary.

• Second or third-year post graduate actuarial students.

Enjoy the opportunity to develop your talents in a variety of actuarial spheres.

What our bursary programme offers (in return for your skill, enthusiasm and commitment): • We cover the cost of: o Registration o Full tuition and residential fees o Textbooks and incidental expenses o Incentive bonuses for exceptional achievements o Annual travel allowance for flights back home (where applicable) • We also provide vacation work from second year and a basic living allowance.

• An excellent networking opportunity and your chance to meet other actuaries in the business.

• The opportunity to enrol at either the University of Cape Town or the University of Stellenbosch.

Once you have successfully completed the bursary programme: • An experienced Metropolitan actuary will be assigned as your mentor. He/ she will provide guidance so that you can learn from him/her and grow your skills through experience.

• You will have guaranteed employment within one of the largest financial institutions in Africa.

Kick start your career at Metropolitan

Unlock growth opportunities while learning from a group of experienced actuaries in a challenging and inspiring environment.

Using your mathematical and statistical skills, you’ll enjoy the opportunity to develop your talents in a variety of actuarial spheres. In order to do this, we choose the best and invest heavily in them. Our exceptional level of encouragement, opportunity and support includes: • On-the-job training to help you gain valuable skills.

• Support for your professional exams to become fully qualified, with bonuses and pay increases to go with it.

• Movement throughout the MMI Group via our three-year actuarial job rotation programme. This new initiative allows you to work in different teams throughout the business to experience different clients and projects.

Requirements for the graduate programme • You’ll need to be a South African citizen with a bachelor’s degree in actuarial science, having achieved a minimum of four Core Technical (CT) Series exemptions by the time you graduate.

• Experience using Microsoft Office; you’ll ideally have the ability to code in Visual Basic (VB).

How to apply

Please send a full CV, with a copy of your latest academic transcripts to actuarialhr@metropolitan.co.za.

We are now taking applications for 2013. For more information on the graduate programme, visit our website at www.metropolitan.co.za.

All of our CSI initiatives are aimed at uplifting disadvantaged communities.

There are thousands of areas in South Africa where poverty, unemployment, a lack of education, HIV/Aids and other health-related problems are crippling our country’s economic advancement.

More

than just a s p o n s o r – we a re co m m u ni t y par t ne rs Metropolitan is actively involved in different community projects around South Africa. We are well-renowned for our various soccer sponsorships at a development level.

Our sponsorships have an engaging nature that allows us to contribute meaning to society and communities at large. We approach sponsorship as a partnership where we provide more than just financial support, getting actively involved in running these sponsorships as well.

More importantly, we feel that our sponsorship initiatives should support the communities that we draw business from to ensure that we are really giving back.

Currently we are the proud sponsors of: - Metropolitan SASFA U16 Cup - Metropolitan Premier Cup (U19 Premier Cup) - Farouk Abrahams Goalkeeper Academy

Investing in our community

Because we operate within communities, we know that there are thousands of areas in South Africa where poverty, unemployment, a lack of education, HIV/Aids and other health-related problems are crippling our country’s economic advancement.

This underpins the approach to our corporate social investment (CSI) initiatives.

Our CSI focus areas:

• Education programmes (consumer or financial, pre-school, primary, secondary and tertiary education).

• Social development and community development projects.

• HIV/AIDS support and health projects.

Similar to the way we manage sponsorships, our approach to CSI is that of communitybased development through direct involvement, facilitation and skills transfer. We aim to establish long-term relationships with all our CSI stakeholders.

Most often, we seek opportunities to partner and support existing community development projects, as we have found this approach to be the most sustainable. All of our CSI initiatives are aimed at uplifting disadvantaged communities.

56

INmag | 2012

58

INmag | 2012

JOB SATISFACTION BY THE BUCKETFUL

M

MUTUAL & FEDERAL

2012/03/15 10:23 AM 27324_MF_imag_P.indd 1

M

mu t ual & federal

Where the sky is the limit.

INmag | 2012

59

mu t ual & federal

Peter Todd managing director

Why did you complete an LLB and then pursue a career in insurance?

Being a lawyer looked really appealing and when I got into it, I was a bit disillusioned.

Having majored in accounting in my undergraduate degree, I wanted to do something more commercial and a lot of the commercial litigation I was involved in, was insurance related.

How has your degree been of value to you in your work?

I had a good mix as both law and accounting are disciplines that play a major role in insurance. In insurance, so much revolves around the insurance contract, so understanding law is very useful and there are always legal aspects involved in running a business. It’s also helpful to be able to read and understand financial statements and other accounting issues.

wanting to run a business than become a managing director.

After a brief foray into the banking world I pursued an opportunity to be involved in mainstream insurance with AIG. I then had a lucky break in that I was approached by Alexander Forbes to run its Asia operations. I was thrown in the deep end and gained a wealth of experience running the business, expanding into new countries and being exposed to different cultures.

However, I knew I would come back to South Africa. Taking on the role of managing director at Mutual & Federal was a compelling opportunity as it involved turning around an established business with a solid brand and reputation.

How did you get to where you are today?

My goal wasn’t as specific as wanting to climb the corporate ladder. It was more about

What would you tell people who aspire to become managing directors?

Always look for opportunities to grow out of your comfort zone, hope to be lucky and realise that sometimes you have to take a risk.

The more exposure you can get to different aspects of the business, the better.

While working in Asia, I got involved in everything from risk to finance to human resources, which has allowed me to understand how a business operates.

How do you think the working world has changed and what impact does this have on choosing and planning a career?

I think there is both challenge and opportunity. The challenge is that there is more choice and more variety; the risk is that you can jump around too much and become a jack of all trades but master of none. There is certainly some value in sticking with a theme

Find something that you are passionate about.

60

INmag | 2012

as a result, puts money back into the economy.

As an industry we work together with Business Against Crime South Africa (BACSA) to tackle the problem of theft and hijacking of vehicles, which has reduced dramatically over the past five years.

We also pay hundreds of thousands of claims a year and contribute billions back into the economy, which creates jobs and stimulates spending.

I tell my staff that they should think about the noble purpose they serve when they come to work each day and should be very proud to work in this industry.

What do you love about your job?

It’s a very people-driven industry and I relish the challenge. To run a company that has been around as long as Mutual & Federal, where change doesn’t come easily and we are always faced with start-up competitors, is a challenge I thrive on.

in your career so that you build expertise. For example, I was always in financial services so all my moves were related. At the same time there are many career opportunities and you don’t have to be stuck in a nine-to-five job.

Always look for opportunities to grow out of your comfort zone.

Find something that you like and that you are passionate about, don’t stick to a job you hate or choose a job because it sounds good. Some people enjoy the dynamics of the corporate environment and other people can’t stand it. Be honest with yourself and know your likes and dislikes. If you have an impressive job but hate every minute of it, then you have failed yourself. Enjoying what you do makes it easier to be successful.

What should students consider when choosing a field of study?

For your first job a degree helps, but once you are in the door and begin building experience, it becomes less important (unless it’s a specialist position). For example, when people are applying for a senior role, I’m more interested in what they have done, how successful they have been and what they are like as individuals, than I am in what qualification they have. So, students must study for a career that will suit them and their personality, not necessarily one that

will pay them well or that is favoured by society.

What misconceptions do people have about the insurance industry?

Most students have the impression that the insurance industry is made up of a bunch of sharks, as a result of the negative press we get when a claim is rejected. Yet we don’t get credit for the thousands of claims we do pay. Having worked in all aspects of financial services I can honestly say that there is no other industry quite like our industry. People in this industry attend functions with all their competitors, packing out convention centres in Johannesburg and Cape Town every year. There is a great vibe and sense of community.

How is insurance important to the South African economy?

Insurance is a vital cog in the economy, for both individuals and companies. Without insurance a company could go bankrupt through one major incident, which would have a massive knock-on effect for all the people employed by that company.

Companies wouldn’t take the risks they do take, which are important for growth, if they didn’t have insurance.

The insurance industry protects the assets and livelihood of people and,

Which aspects of your job do you not enjoy and how do you deal with them?

Everyone has mundane tasks and these don’t go away once you climb the corporate ladder. There is a lot of financial reporting to do; monthly reports and board reports, which are generally backward looking and quite tedious. It comes with the territory and you have got to accept that and focus on the fun things.

Tell us what you do in an average day.

Most of my days get taken up with meetings and I spend my evenings replying to e-mails. As a managing director, your primary role is to make decisions and so I sit in meetings where various issues are debated. In order to make decisions you need to know what is going on, both within the company and in the external environment in which the company operates.

What would people be surprised to learn about you?

I’m very much a what-you-see-iswhat-you-get individual, although I once did the Argus Cycle Tour in a tuxedo when I was a student.

What do you do for fun?

Anything to do with sport. I run, cycle, swim and play golf. I’m very active and enjoy the outdoors.

INmag | 2012

61

Gloria Chiloane negotiator: technical,

set your sights high.

legal, salvage and recovery

Why did you choose insurance as a career and how did you join the industry?

I joined the industry through a graduate development programme with Mutual & Federal in 2011. I chose the insurance industry because of its challenging, exciting and dynamic nature. You never know what to expect.

The industry also has a lot to offer in terms of career development, especially for the youth.

Tlaweng Ramushu relationship consultant degree gave me a good foundation and taught me how to apply critical thinking to various problems and situations.

What does your job entail?

I work in the new markets business development and sales unit, with specific focus on the black South African market. This involves forming professional partnerships with large corporations, government and sometimes unions. Identifying new opportunities and finding solutions can be challenging at times, but I enjoy it. It keeps me on my toes.

How has your degree been of value to you?

My degree in internal auditing and business management and my experiences as a student laid the foundation for my career and understanding of the corporate world. My degree has helped me map the direction I want to take in my career and, as a result, identify growth prospects and how to go about achieving them.

What advice would you give students who are unsure about what they want to study or whether they want to study at all?

First get to know who you are and design your life plan.

You may end up using someone else’s plan if you do not have your own, which may ultimately work against you.

Set your sights high and always work towards achieving your goals.

What do you love most about working in the insurance industry and why would you recommend it to young South Africans?

The industry provides me with the opportunity to fulfil my sense of purpose, which is to help others. A career in insurance is suited to someone who wants to be challenged. The industry is fast paced and deals directly with people, exposing you to an array of opportunities presented both by the business and the people in the business.

What misconceptions do people have about insurance?

Some people think that insurance is not important and should be the first expense to get rid of if they run into financial trouble. But in an unpredictable world, insurance is vital. I also find that when people find out I work for an insurance company, they assume I am an insurance salesperson.

What would people be surprised to learn about you?

I am an aspiring guitarist.

What message do you have for South African school-leavers?

To conquer the world, your motivation should be the desire to do better than ever before; not the desire to be better than others.

62

INmag | 2012

Having lived in Zimbabwe, the UK, Swaziland, Zambia and South Africa, Tlaweng considers himself a child of the earth.

Why did you choose insurance as a career and how did you join the industry?

I was always interested in the financial services industry as it is one of the leading sectors of our economy and is a very dynamic environment that provides a vast array of career opportunities.

When I finished my studies, I applied to various financial institutions and was gladly accepted into the 2010 graduate development programme at Mutual & Federal.

How has your degree been of value to you?

I studied a BCom in marketing and economics at Wits. My

What do you love most about working in the insurance industry and why would you recommend it to young South Africans?

Working in the insurance industry has afforded me an opportunity to travel around the country and interact with people from diverse backgrounds – one minute I’m meeting with a farmer in the North West and the next an executive of a large firm. I would recommend the insurance industry because it is a very dynamic field, lined with growth opportunities and it touches all our lives, whether as individuals or organisations.

What misconceptions do people have about insurance?

Insurance is seen as a grudge purchase by many, but the economy wouldn’t function without it. It provides peace of mind and can save a person from financial ruin resulting from theft, loss or damage to property.

As the Mutual & Federal slogan says, we look to insure what is important to you!

What advice would you give students who are unsure about what they want to study or are not sure if they want to study at all?

The reality is that furthering your education unlocks doors of opportunity and the demands of our economy require skilled professionals. Research professions you are interested in, find out what educational qualifications are required and speak to someone in the field if you have the opportunity to. If you are still undecided, always do what you are passionate about.

What message do you have for South African schoolleavers?

Nothing is impossible if you put your mind to it. You always need to be a willing participant in your own success and do the preparation and work required to achieve what you want to achieve.

Don’t be afraid to fail and make mistakes as it’s often the lessons learned that mould you.

D o n’ t b e afraid to fail and make mistakes as it’s often the lessons learned that mould you.

DO GREAT THINGS

O

64

INmag | 2012

LQ JUDGHV DQG ZKR DUH DFDGHPLFDOO\ LQVSLUHG DQG LQWHUHVWHG LQ SXUVXLQJ DQ $FFRXQWLQJ RU $FWXDULDO FDUHHU <RXU VSHFLDO WDOHQWV FRXOG HDUQ \RX D VFKRODUVKLS DW RQH RI 6RXWK $IULFD·V WRS VFKRROV IRU JUDGH

DQ LQLWLDWLYH VSHFLÃ&#x20AC;FDOO\ GHYHORSHG WR LGHQWLI\ DQG QXUWXUH

JLIWHG OHDUQHUV DFURVV 6RXWK $IULFD ZKR KDYH WKH SRWHQWLDO DQG

HDUO\ LQWHUHVW WR SXUVXH DQ $FWXDULDO RU $FFRXQWLQJ FDUHHU EXW

ZKR DUH QRW LQ D SRVLWLRQ WR DFFHVV KLJK TXDOLW\ 0DWKV HGXFDWLRQ

English (65% or more)

² DSSO\ IRU \RXU VFKRODUVKLS QRZ

2OG 0XWXDO DIWHU JUDGXDWLRQ

ZZZ ROGPXWXDO FR ]D MXPSDKHDG

7KLQN \RX·YH JRW ZKDW LW WDNHV" 7KHQ GRQ·W ZDVWH DQ\ PRUH WLPH

Â&#x2021; 7KH SRVVLELOLW\ RI DQ $FFRXQWLQJ RU $FWXDULDO FDUHHU SDWK ZLWK

UHTXLUHG JUDGHV

TXDOLWLHV

Â&#x2021; <RX PXVW VWDQG RXW DV D WDOHQWHG DOO URXQGHU ZLWK OHDGHUVKLS

Â&#x2021; <RX PXVW EH D 6RXWK $IULFDQ FLWL]HQ

Â&#x2021; <RX PXVW EH LQ QHHG RI Ã&#x20AC;QDQFLDO DVVLVWDQFH

8QLYHUVLW\ EXUVDULHV DIWHU PDWULFXODWLQJ VXFFHVVIXOO\ ZLWK WKH

Â&#x2021; 7KH FKDQFH WR DSSO\ IRU 2OG 0XWXDO $FFRXQWLQJ DQG $FWXDULDO

OHDUQHUV H[SORULQJ $FFRXQWLQJ DQG $FWXDULDO FDUHHUV

Â&#x2021; $Q LQWHUDFWLYH MRE VKDGRZ SURJUDPPH DW 2OG 0XWXDO IRU

WRLOHWULHV VFKRRO XQLIRUPV DQG FORWKHV

Â&#x2021; $Q DGGLWLRQDO DOORZDQFH IRU WUDYHO VWDWLRQHU\ ERRNV

Â&#x2021; )XQGLQJ IRU WXLWLRQ DQG KRVWHO IHHV

Â&#x2021; ,QGLYLGXDO VXSSRUW HQFRXUDJHPHQW DQG PHQWRUVKLS Â&#x2021; <RX PXVW KDYH H[FHOOHQW DELOLW\ DQG SRWHQWLDO LQ 0DWKV DQG

\RX PXVW DOVR PHHW WKH UHTXLUHG VFKRODUVKLS FULWHULD

Â&#x2021; 4XDOLW\ 0DWKV HGXFDWLRQ H[WUDPXUDO DFWLYLWLHV DQG OLIH VNLOOV

IURP D WRS 6RXWK $IULFDQ KLJK VFKRRO

,Q DGGLWLRQ WR EHLQJ D GHGLFDWHG DQG JLIWHG JUDGH RU VWXGHQW

7KH EHQHÃ&#x20AC;WV RI DQ 2OG 0XWXDO 6FKRODUVKLS LQFOXGH

6FKRODUVKLS DSSOLFDWLRQ FULWHULD

:H·UH RQ WKH ORRNRXW IRU GHGLFDWHG JLIWHG DQG WDOHQWHG OHDUQHUV

Welcome to the Old Mutual Learnersâ&#x20AC;&#x2122; Scholarship Programme

GXH WR Ã&#x20AC;QDQFLDO FRQVWUDLQWV

'UHDP ELJ DQG HDUQ \RXUVHOI D VFKRODUVKLS

The Old Mutual Learnersâ&#x20AC;&#x2122; Scholarship Programme

O OLD MUTUAL

Old Mutual believes its people deserve a culture that is enabling, empowering and supports their personal development.

OLD MUTUAL

INmag | 2012

65

omms 01.2012 T3636

OLD MUTUAL

Old Mutual South Africa

For more than 165 years, Old Mutual has provided a financial home to people and businesses, helping them to achieve their dreams.

While our business is global, our hearts remain South African as we aim to serve all sectors of our economy by developing financial solutions that are more accessible, more affordable, more flexible and easier to understand by more people.

With our customers having to deal with the uncertainty of the world economy, it is our people who enable us to deliver on our promises and preserve our legacy as a leading financial services provider.

Old Mutual believes that its people deserve a culture that is enabling, empowering and supports their personal development. In South Africa, we employ more than 16 000 people and help our employees realise their positive futures in the workplace through a number of career and skills development programmes, including a talent management programme.

We owe much of our success over the past years to the communities in which we operate and we’re determined to maintain and nurture those relationships so we can continue to do great things together.

66

INmag | 2012

With our corporate social investment programmes, we strive to meaningfully and sustainably transform and empower our country’s most disadvantaged people. We work with communities to determine their needs and offer solutions through partnerships that are underpinned by mutual respect.

So it is through learning and being open to new things that we will deliver superior results and develop a culture of high performance. By maximising this contribution and helping South Africans achieve their potential, we can be a real force for good.

In our quest to become an employer of choice, Old Mutual South Africa was ranked as the Best Employer in Financial Services by the Corporate Research Foundation (CRF) during 2011. We were also in the top three in the Large Company category of the annual Best Company to Work For Survey, conducted by Deloitte.

organisation: with integrity, respect, accountability and pushing beyond boundaries.

The Old Mutual Group provides innovative life assurance, savings, protection, asset management, banking and general insurance products and services.

In South Africa we strive to be…

First for our customers who want their needs to be understood and met. They expect choice, transparency and flexibility in the solutions that are available to them.

Our primary objective is to preserve and grow the money that our customers entrust to us, either directly or through their financial advisers.

First for our shareholders to whom we deliver sustained and superior financial performance, adding value to their investments and rewarding confidence placed in Old Mutual.

Our vision is to become the international long-term savings and investment partner of choice and the premier financial services partner in South Africa. We will achieve this through becoming our customers’ most trusted partner – passionate about helping them achieve their lifetime financial goals.

First for South Africa by being involved in a number of initiatives that promote learning, growing and excellence in the field of education in South Africa.

We are passionate about transforming our nation through our involvement in retirement reform, black economic empowerment and workplace transformation initiatives.

Our values form the foundation of how we operate as individuals and as an

Old Mutual has been involved in corporate social investment initiatives since 1965. The Old

+RZ DZHVRPH are you really?

The Old Mutual opportunity <RX JHW VXSSRUW IURP WKH GD\ \RX PDWULFXODWH WKURXJKRXW \RXU DFWXDULDO VWXGLHV WR TXDOLÃ&#x20AC;FDWLRQ DQG EH\RQG 2XU &KLHI ([HFXWLYH 2IÃ&#x20AC;FHU /RQJ 7HUP 6DYLQJV 3DXO +DQUDWW\ EHJDQ KLV MRXUQH\ DV D EXUVDU\ VWXGHQW :H QRZ RIIHU \RX D EXUVDU\ WR VWXG\ DW 8&7 RU 6WHOOHQERVFK ² LI <28 WKLQN \RX KDYH ZKDW LW WDNHV XVH WKH 2OG 0XWXDO RSSRUWXQLW\ WR 6+,1( The bursary covers 7XLWLRQ IHHV $FFRPPRGDWLRQ ZLWK PHDOV 7UDYHO DQG ERRN DOORZDQFH

The challenge Being an Actuary requires 6DFUL¿FH GHGLFDWLRQ DQG KDUG ZRUN 3URYHQ QXPHUDF\ VNLOOV 0DWKHPDWLFV

,QFHQWLYHV IRU JRRG SHUIRUPDQFH

&RPPXQLFDWLRQ VNLOOV (QJOLVK

$FDGHPLF DQG HPRWLRQDO VXSSRUW

$Q DSSHWLWH IRU FKDOOHQJH

*RRG QHWZRUNLQJ RSSRUWXQLWLHV

'ULYH HQHUJ\ DQG LQLWLDWLYH

9DFDWLRQ ZRUN IURP VHFRQG \HDU

The Old Mutual edge to keep you going 2QH RQ RQH PHQWRULQJ E\ DQ H[SHULHQFHG TXDOL¿HG DFWXDU\ *XDUDQWHHG HPSOR\PHQW DIWHU XQLYHUVLW\ ,Q KRXVH URWDWLRQ SURJUDPPH H[SRVLQJ \RX WR YDULRXV DVSHFWV RI RXU EXVLQHVV :RUNLQJ ZLWK DFNQRZOHGJHG LQGXVWU\ OHDGLQJ H[SHUWV LQ GLIIHUHQW ¿HOGV VKDSLQJ 6RXWK $IULFD¶V ¿QDQFLDO IXWXUH

7KDW VSHFLDO [ IDFWRU WKDW SURYHV \RX¶UH D FXW DERYH WKH UHVW

The reward $W WKH HQG RI WKH MRXUQH\ \RX ZLOO MRLQ DQ HOLWH WDOHQWHG SRRO <RX ZLOO EH UHFRJQLVHG DV D WRS HDUQLQJ QLFKH SURIHVVLRQDO ZLWK VSHFLDOLVHG VNLOOV LQ ULVN PDQDJHPHQW DFURVV D UDQJH RI ¿QDQFLDO DUHQDV ± ¿QDQFH IXQG PDQDJHPHQW LQYHVWPHQW SURGXFW GHVLJQ VROXWLRQ GHYHORSPHQW DQG FRQVXOWLQJ DQG UHWLUHPHQW DQG ULVN SODQQLQJ ± DPRQJ RWKHUV

Closing date: 30 July 2012 3UHIHUHQFH ZLOO EH JLYHQ WR 6RXWK $IULFDQ EODFN OHDUQHUV L H $IULFDQV &RORXUHG DQG ,QGLDQV LWR RI (( $FW

For more information, contact 021 509 4861 (mmeehan@oldmutual.com) | 011 217 1707 (sncube@oldmutual.com) www.oldmutual.co.za/careers

Mutual Foundation was established in 1999 and focuses on enterprise development, skills capacity building, and formal education and encourages staff to volunteer their personal and some work time in giving back to the community.

To achieve our business objectives and become our customers’ most trusted partner we need choice staff – employees who are hard working, goal-directed and passionate about their field of expertise. Our employees continuously think about new and better ways of doing their work, servicing our customers and maintaining a healthy work-life balance. They want our customers and our country to succeed.

As an employer, Old Mutual is a leading financial services organisation built on a proud heritage, the quality of its people and their passion for making a difference to the future of South Africa. Employees have access to a broad range of local and international career paths, competitive rewards and an opportunity to achieve great things.

Career opportunities Career opportunities are offered to school leavers, graduates, young professionals and experienced specialists and managers in the following fields of work: • Investment management • Actuarial • Finance • Audit • Law

• Information technology • Marketing • Human resources • Sales and distribution • Customer service and operations • Property development and management To learn more about careers and life at Old Mutual, please visit our careers website at www.oldmutual.co.za.

Making it count

INmag interviews up-and-coming actuary Takalani Madzhadzhi who works for Old Mutual. We found that actuaries don’t only work with numbers and that Takalani’s passions include road running and playing the guitar.

What is your first memory of using numbers?

My first memory would be in Grade One. However, my parents always mention that when I learned to hold a pen – which was about age three – the only things I would write were numbers one, two and three.

Why do you think you got a bursary from Old Mutual?

That’s an interesting question. I recently re-read my application essays and application form and although my marks were good, I think the fact that I displayed that I am an independent thinker and a well-rounded person who can deal with change helped me get the bursary.

What are the important things to do at school (and straight after) to secure your career?

Find out what you enjoy, read as much as possible about it and do whatever you can to make it happen.

If you could go back in time and tell your 17-year-old self anything, what would it be?

Don’t be scared of failure; it’s your first attempt in learning.

68

INmag | 2012

What are your qualifications and what did you enjoy about your studies?

I studied a BBusSci (bachelor of business science) at the University of Cape Town and graduated in 2008. I qualified as an actuary in 2011.

What did I enjoy about my studies? I know this is a cliché but I liked the fact that it was not easy. I enjoyed the challenge.

Describe yourself in three words.

Ambitious, proactive and adventurous.

Tell us what you do in an average day.

A typical work day would involve meeting with the product development team and stakeholders who are involved with the current project, developing models that are used to price new product offerings and investigating the morbidity experience compared to the business’s expectation.

What is your best studying tip and how do you cope with stress?

Work consistently and always plan. Never allow yourself to misunderstand any aspect of the syllabus.

Fill in the missing words. Actuaries are…

Professionals who make financial sense of the future.

What misconceptions do people have about actuaries that you would like to set straight?

People have this idea that actuaries work only with numbers, day in and day out. Yes, numbers are an integral part of what you do, but being an actuary is more about interpreting what the numbers are trying to tell you.

What do you do for fun?

I read, I take part in road-running competitions, travel and play my guitar (well, I am learning to play).

What are your plans for the future?

I am still young, so I am planning to learn as much as possible and gain experience in as many different fields of work as I can.

Long walk to success

INmag interviews soon-to-be chartered accountant Fareeaa Nagia, who shares some useful study tips and advice on securing a career.

What is your first memory of using numbers?

Probably counting down the number of days before we were going on holiday.

When did you know you wanted to be a CA? When I was in Grade 11 and I realised that the CA qualification opened up a lot of doors. It’s more than just doing a company’s books; you can do a lot with the qualification.

Why do you think you got a bursary from Old Mutual?

I think Old Mutual looks for high school students who are not only planning to become CAs, but are inquisitive, enthusiastic about learning new things and determined to achieve their goals.

What are the important things to do at school (and straight after) to secure your career?

It’s important to get academic results that can secure you a spot at a tertiary education institute.

Once you’re there, your main focus should be getting your qualification. A Buta CA shouldn’t just know the technical stuff. CAs need to work with people, show integrity and professionalism and always be ethical. University is a good place to develop all these characteristics by learning from the people you meet. You learn a lot about professionalism and develop people skills by joining societies and committees.

If you’re studying to become a CA, it’s important to sort out a training contract while at university (or in high school) with a company where you can do your articles after you’ve graduated. A lot of companies also offer vacation work where you can get an idea of what it’s like to work there.

If you could go back in time and tell your 17-yearold self anything, what would it be?

I’d tell her to learn from the people around her and don’t be afraid to ask questions. There is so much to learn, not just about academics.

Is the CA qualification a status symbol?

I think it is. It’s a long process to become a CA. First you spend four or five years at university and then three years doing articles. Only those who really want it will go through the whole process. In the same breath, the qualification is quite accessible, so it shouldn’t really be a status symbol.

Tell us what you do in an average day.

As I’m not doing my articles with an auditing firm, my average day varies depending on which business unit I’m in and the time of year it is. At the moment, I’m assisting with the tax and accounting functions of a finance team at Old Mutual Property. I’ve assisted with putting together parts of the annual report and am writing a report on the new dividends tax legislation. I’ve also done income tax calculations for several property companies and bank reconciliations.

What is your best studying tip?

Practice past exam questions under time pressure. When you mark yourself have a look at how the answers and workings are laid out. This helps you improve your speed and identify where your exam strategy needs work.

You can do badly even though you know your work because you run out of time or because your workings were disorganised, so the examiner couldn’t give you the marks.

Describe yourself in three words.

Funny, kind and ethical Fill in the missing words. Chartered accountants are…

Not boring. You get all kinds of CAs. I know some who are serious and quiet, some who are silly and smart, and some who are loud and ambitious.

INmag | 2012

69

CA’s are uniquely gifted individuals with tremendous potential to be leaders in whatever they choose to do.

The numbers game

When did you know you wanted to be a CA? I attended a work experience week in Grade 11 at an auditing firm and was immediately gripped by the professional nature of the industry and the career. This experience, as well as my love for numbers, kickstarted my interest in the profession.

Why did you choose to do your articles with Old Mutual?

I chose to do my articles at Old Mutual as it is a well-respected financial services company with a global footprint, which presented the opportunity to gain invaluable experience in many different areas.

Persevere at everything you do because the fruits of labour will be sweet.

70

What are the important things to do at school (and straight after) to secure your career?

It is very important to excel in mathematics and accounting while still at school to give you the analytical skills you need to forge ahead during university. Consistent application during university will INmag caught up with go a long way to building the right up-and-coming chartered attitude required to survive in the accountant Ntuthuko working world. Participation in Mtshali, who shared his extra-mural activities and leadership ideas on work, life and roles both at school and university having fun. will also stand you in good stead, as it helps develop the social side What is your first of your personality and creates a memory of using well-rounded individual, capable of numbers? handling stressful situations.

My earliest memory of using numbers is If you could go back in time growing up playing and tell your 17-year-old self scrabble with my family anything, what would it be? and always wanting to Persevere at everything you do be the one to add up because the fruits of labour will be the scores and calculate sweet. Have a never-say-die attitude. who was leading at each This will show people that you are round. serious about your ambition.

INmag | 2012

Take us through your qualifications. What did you enjoy about your studies?

I obtained my bachelor of commerce in financial accounting in 2006 and my post-graduate diploma in accounting in 2008. In 2009, I completed my first qualifying examination and, in 2010, I wrote my second qualifying examination. During my studies I enjoyed exerting myself to solve problems, as well as the learning that came with not always making it through the first time. It helped build my character tremendously.

Is the CA qualification a bit of a status symbol?

Based purely on the potential that a CA presents to a company and the scarcity of qualified CAs, I would say definitely yes.

Describe yourself in three words?

Fun-loving, ambitious and driven.

As a trainee accountant, what kind of work did you get exposed to and what were/are your highlights?

I’ve been exposed to the investments side of the group including specialised finance, property investments, group internal audit and retail finance. I’ve been involved in preparing annual counterparty credit reviews, business planning as well as financial statement preparation. My highlight was my time spent in the London office and travelling to Sigtuna, Sweden for the group internal audit’s autumn school, where I got to meet colleagues from Sweden and Germany.

What is your best studying tip and how do you cope with stress?

Consistent application and keeping up-to-date on a day-to-day basis; there is no substitute for hard work. I cope with stress by taking time for myself and relaxing with friends. There are 24 hours in a day; more than enough.

Fill in the missing words. Chartered accountants are…

Uniquely gifted individuals with tremendous potential to be leaders in whatever they choose to do.

What are your plans upon qualifying as a CA? My plans are to advance my knowledge of the company and its operations through positioning myself for strategic opportunities to enable rapid growth and build long-lasting relationships with senior management.

omms 12.2011 T3636

Starting your career from day one

How to qualify for the bursary: Q

You must be in possession of/studying matric.

Q

Must pass matric with at least 60% or Level 5 for Mathematics (not Maths Literacy) and English.

Q

Must study at the University of Cape Town or Stellenbosch.

For further information, contact 021 509 2656 or visit www.oldmutual.co.za/careers

OLD MUTUAL CHARTERED ACCOUNTANT TRAINING PROGRAMME

72

INmag | 2012

Covering the extraordinary

S

S

SASRIA

SASRIA Africaâ&#x20AC;&#x2122;s foremost special risks insurer for over 30 years.

INmag | 2012

73

SASRIA

CSI Brochure 2012

Sasria SOC Limited has been in business for over 30 years. It provides cover for damage caused by political and nonpolitically motivated riots, public disorder, labour disturbances, civil unrest, strikes, lockouts and terrorism. Cover also includes loss in respect of mortgage loans.

74

INmag | 2012

After careful consideration, students are given a bursary and support for their studies over a four-year period.

Sasria functions through a network of agent companies who have to be registered short-term insurance companies. Due to this business model, partnership between Sasria and agent companies, as well as brokers, is critical in providing adequate insurance covers to mutual clients and giving optimal service. Brokers play a vital role in providing detailed information to public and corporate clients of the Sasria product. The South African Government, through National Treasury, is Sasria’s sole shareholder.

In 1999, the acronym Sasria was officially adopted, and was derived from the South African Special Risk Insurance Association.

Sasria provides two per cent of its after-tax profit to chosen corporate social investment (CSI) initiatives. For the next two years, Sasria’s core focus continues to be streamlining initiatives towards education.

Sasria provides two per cent of its aftertax profit to chosen corporate social investment (CSI) initiatives.

SAADP The South African Actuaries Development Programme (SAADP) began in 2003. The SAADP is an independent, non-profit organisation that was established with the backing of Sasria. Its primary aim is to find and mould mathematical and analytical skills amongst black students in order to expose them to career opportunities in the field of actuarial science. After careful consideration, students are given a bursary and support for their studies over a four-year period.

Seventy-one students have graduated and six qualified as actuaries since the SAADP‘s inception.

University of Johannesburg maths and science centre Sasria has established a maths and science centre in partnership with the University of Johannesburg. The focus is on improving maths and science skills for teachers and learners.

SCI-BONO Discovery Centre Sasria has also partnered with SCI-BONO through the Gauteng Department of Education (GDE) in implementing one of the department’s strategic priorities: the Gauteng Maths, Science and Technology Education Strategy and the Gauteng Provincial Literacy and Numeracy Strategy.

Sasria key projects involvement Mobile science and maths laboratory The mobile lab reaches 26 schools in rotation.

Sasria is sponsoring the maths component of this project.

Blended learning programme The programme runs once a week in 15 districts to Grade 12 learners on a walk-in basis. About 12 000 learners are reached every week.

Senior Secondary Improvement Programme (SSIP) The Senior Secondary Improvement Programme (SSIP) provides supplementary tuition to approximately 48 000 Grade 12 learners every Saturday in 110 sites throughout Gauteng.

Sasria has adopted a site in Thembisa where almost 600 learners were taught during the June school holidays.

Finance week The programme runs for a week and involves approximately 8 000 learners. Learners have an opportunity to apply for bursaries from various institutions.

Enkangala Primary School Infrastructure and leadership development in schools: Sasria has invested in infrastructure development, in order to improve the conditions under which learners are being taught, as well as leadership development in poor performing schools. To date, Enkangala Primary School in Daveyton has been renovated and made comfortable for learners and teachers. www.sasria.co.za

INmag | 2012

75

It is important to set high goals and work hard and continuously towards achieving your goals, but you have to be realistic.

Cedric Masondo

managing director

Why did you choose insurance as a career and how did you enter the industry?

I never planned to pursue insurance as a career. At university I was intrigued by marketing but after a stint in banking, I got an opportunity to join the insurance industry and I have been here ever since.

What have you found most challenging and most rewarding about the change from executive manager of underwriting at Sasria to managing director?

As the executive manager, my main focus was underwriting. For the past eight months as an MD there have been a few challenges but the job overall has been rewarding. I am now involved in all aspects of the business: human capital, finance, investment, claims, marketing and underwriting.

How did you get to this point and how is your past experience in the industry useful and relevant to your current role?

In my previous role as executive manager of underwriting I was always in the field; meeting and doing business with clients, brokers and representatives of insurance companies. This experience made the transition to being a managing director easy, as the role involves meeting all stakeholders and being accessible to all.

76

INmag | 2012

How has your degree and your experience as a student been of value to you as a working individual?

I did a BCom degree and the commercial subjects gave me the business acumen to make decisions.

The degree taught me discipline and to be goal driven. It also taught me to be analytical and not to take things at face value.

Not a day goes by that I do not use my degree in some way or another.

What do you love most about working in insurance and why do you think it is an exciting industry to be in?

The insurance industry is the most underrated industry.

Insurance is not just about selling but it embraces all fields and expertise â&#x20AC;&#x201C; from lawyers, actuaries, engineers and marketers to human capital. It is exciting to see all the different fields come together to achieve a single goal.

The profile of people working in the insurance industry is changing as more professionals are joining the industry.

Which aspects of your job do you not enjoy and how do you deal with them?

I am always in meetings.

Some days are more hectic than others. Without coffee I would not make it through the day.

How has the working world changed since you entered it and what impact does this have on choosing and planning a career?

The working environment has become more computer driven than before and also more stressful. The

profiles of employees have changed as it is a lot more professional and qualification driven. More and more professionals are entering the working environment and occupying senior positions. The demographics have changed as more black and female professionals are occupying senior positions.

Insurance has also changed in that underwriting has become more scientific, in depth and driven by actuarial modelling tools.

There are fewer insurance companies than before and there has been an increase of UMAs and they are playing a bigger role in the insurance industry.

What advice would you give students who are unsure about what they want to study or are not sure if they want to study at all?

As a student you need to know your strengths, weaknesses and your preferences. Choose a career that excites you and which matches your personality and capabilities.

Students should decide on their field of interest before grade 10 and then select the appropriate subjects.

They then need to work hard throughout their schooling career and not just during exams.

What is the hardest and most important lesson you have had to learn?

It is important to set high goals and work hard and continuously towards achieving your goals, but you have to be realistic.

What would people be surprised to learn about you?

I am an introvert.

of the financial services environment are the large amount of acts and regulations Sasria has to comply with. Stating that, it is always critical that businesses are managed effectively and responsibly.

What I enjoy the most is to see the value that insurance adds and specifically the role that Sasria plays in the economy – covering the country’s assets against special risks.

Karen Pepler financial director

What do you find most challenging and most rewarding about your role as financial director?

Most rewarding is that I do more than just finance. I am involved in all aspects of the business, i.e. IT, business strategy, projects and finance.

The most challenging part is the implementation of the SAM regime.

How did you get to this point and how has your past experience proved useful and relevant to your current role?

After I completed my auditing articles, I took up a position as a finance manager. However, I did not find it challenging and rewarding enough.

An opportunity presented itself and I joined Deloitte & Touche Special Services Group. This gave me the opportunity to broaden my experience and expand my horizons.

The environment was project-driven and this gave me the opportunity to learn critical aspects of business, i.e. drafting of business plans, compiling and management of budgets, accounting clean-up, financial secondments, etc.

How and why did you decide to study a CA degree?

I took part in a competition while in my matric year and my allocated mentor was a chartered accountant (CA).

I gained a huge amount of knowledge and, once the programme was completed, my mentor invited me to join his firm to start my audit articles. The rest is, as they say, history.

Do you think this degree still has the same value it had 20 years ago? If not, how has its value or relevance changed?

The degree still has the same value, if not more. The role of an FD has changed from mere finance to risk, strategy, etc. and being a CA provides you with the tools to manage these business requirements.

What do you love most about working in insurance and why do you think it is an exciting industry to be in?

What I enjoy the most is to see the value that insurance adds and specifically the role that Sasria plays in the economy – covering the country’s assets against special risks. It is an exciting industry as it involves the management of risks. Risks continuously change and evolve and so the industry has to change, create new products and keep evolving.

Which aspects of your job do you not enjoy and how do you deal with them?

As indicated earlier, the

statutory compliance for financial institutions is the most challenging aspect of the work. However, I have surrounded myself with a highly competent team and this makes all the difference.

How has the working world changed since you entered it and what impact does this have on choosing and planning a career?

A big change in the working world is that there are probably very few onecompany-for-life employees from the new generation.

The workforce is a lot more mobile, demands more flexibility in terms of work-life balance and works remotely from any location.

What advice would you give students who are unsure about what they want to study or are not sure if they want to study at all?

If you are not sure what you want to study, take a gap year, find employment and after a years’ working experience decide what to study. South Africa and the majority of the world’s economies are experiencing challenges. If you are not going to further your education, it will be difficult to gain meaningful employment. Any career should have ongoing development. A CA I am committed to continuous professional development (CPD), i.e. keeping up to date with changes in standards and legislation.

What would people be surprised to learn about you?

I enjoy the outdoors; I enjoy spending time fly-fishing, bird-watching and camping.

Beyond these I really am a family person.

It also allowed me to gain the critical business skills and experience required to be seconded to Sasria SOC Ltd as the acting managing executive. Once I completed the secondment, I gained enough experience in the business to apply for the position of financial director (FD) which I currently hold.

Having worked for Deloitte Special Services Group before joining Sasria in 2010, what was most challenging about the transition into the insurance industry?

The most challenging aspects

INmag | 2012

77

Thokozile Ntshiqa

executive manager: stakeholder management division

Having studied an LLB, how has your law degree helped you with your work in insurance? â&#x20AC;˘ It has helped me to better understand insurance contracts. â&#x20AC;˘ It assists me in interpreting the terms and conditions of the policy wordings. â&#x20AC;˘ It guides my effective communication, i.e. written and verbal.

Although you have not worked in a law practice, what did you find most challenging about the change from studying law to working in insurance?

There are great similarities between insurance and law; for example, you need to understand the law of contract and the law of delict in order to effectively function in the insurance industry. Having majored in the law of contract when I did my undergraduate degree, it was a seamless transition. In fact, I had an opportunity to apply all the skills acquired during my studies without having to be in practice.

Why did you choose a career in insurance and how did you enter the industry?

Like most people in the insurance industry, I ended up in insurance by accident. I lost interest in practising law when I did my final year of my LLB. I am, however, grateful to be in this complex industry where only change is constant. The industry has exposed me to a number of career opportunities such as legal advisory, underwriting, claims assessment, etc.

How did you get to where you are today?

I started my career in insurance at Mutual & Federal in 1999 as a claims negotiator. I worked for a number of other insurance companies in various roles and joined Sasria in 2003 as a senior claims controller.

Sasria, being a very small company at that time, gave me exposure to all functions within the company.

One year later I was promoted to being a claims manager. My job functions broadened and the role changed into technical (insurance) and claims manager. I also acted as an executive manager for business operations for a year prior to being appointed.

78

INmag | 2012

My role has recently been changed to executive manager: stakeholder management division. In my career development, it took commitment, focus, positive attitude, skills advancement and studying further.

law suited me better. I would have been bored if I had pursued a career in the medical field. If you do something you love and have a passion for, growth and development comes naturally.

What do you love most about working in insurance and why do you think it is an exciting industry to be in?

I love making a difference in the industry through exchanging ideas with my colleagues in taking the industry forward and ensuring that it remains sustainable. Insurance is a form of risk management primarily used to protect against the risk of an uncertain loss. It is therefore exciting to find means to plug gaps in insurance products, i.e. developing products to meet the needs of the insuring community.

How has the working world changed since you entered it and what impact does this have on choosing and planning a career?

The corporate world has become more demanding for an academic qualification, it is therefore imperative to study and have a career plan. Corporates have also become focused on increasing or improving their bottom line, as well as delivering excellent service. This means much more is expected from employees. Therefore being in a career of choice that you love is paramount.

Which aspects of your job do you not enjoy and how do you deal with them?

The administrative part can be tedious; however it has to be done. I work on it at the end of each day when it is less busy.

What advice would you give students who are unsure about what they want to study or are not sure if they want to study at all?

It is said that education is simply the soul of a society as it passes from one generation to another.

From my experience this is true; to get ahead in life you need to advance and empower yourself.

One of the best ways of choosing a career to study towards is to look at your interests. For example, I wanted to be a dentist but having looked at my personality and interests,

What message do you have for South African school-leavers?

Success is in your hands, plan ahead and stay focused! Identify your interests and what you are passionate about; follow that passion and believe in it. The only stumbling block between you and success is you.

What would people be surprised to learn about you?

That I am very domesticated.

Identify your interests and what you are passionate about; follow that passion and believe in it. The only stumbling block between you and success is you.

and this industry is perfectly suited for me.

Sasria covers the extraordinary and that is ultimately exciting.

Nomsa Wabanie executive manager: business support division

Please describe what your role as executive manager of business support entails?

I am currently responsible for the management of the legal department, compliance, risk management (governance) and human capital management.

You joined Sasria from Absa Bank.

What did your role at Absa entail and how has this experience assisted you in your current role?

I occupied various roles at Absa: • I was a deceased estates administrator.

• I was an implementation consultant in the business support division.

• I was the national compliance manager.

All these roles and my legal background have greatly assisted me as the executive manager for business support.

What have you found most challenging and most rewarding about this change?

The most challenging aspect was moving from a large corporate (±33 000 people) to a small corporate (20 people). Of course, this makes it easier to implement strategic and divisional plans. It is also easier to assess the impact of what is being implemented within a short space of time and to adapt where necessary ▬ and that is rewarding.

Which aspects of your job do you not enjoy and how do you deal with them?

I do not enjoy the administration part of the function; however, I delegate these aspects to people that clearly have a passion for it.

How has the working world changed since you entered it and what impact does this have on choosing and planning a career?

Legislation has brought many changes to career planning. In the past a degree would have secured you employment but now the degreed person must also be FAIS complaint and complete the RE exams to enable them to sell or provide advice on insurance products.

We have also become a lot more global. An example is the fact that the Information Bill is not just an issue here. The USA has a similar concern. SAM was started in Europe and now we are implementing similar controls.

What advice would you give students who are unsure about what they want to study or are not sure if they want to study at all?

If a student does not know what to study, I would

suggest that they use career guidance centres or visit a library and read books about career planning.

I would want to know why they don’t want to study and give them the benefit of the doubt as not every person that is successful completed a degree. However, I would advise that they need to know what they are passionate about and make sure they do something about it.

Education does have its place; however, you can complete a learnership programme to gain some experience.

What is the hardest and most important lesson you have had to learn?

The hardest lesson was that you cannot treat people the same. Each person has different needs at different times. I refer to it as situational leadership.

Be the leader the situation demands of you. The most important realisation was that leadership is not about the number of people that I control but about the number of people I empower to achieve their potential.

What would people be surprised to learn about you?

I like the outdoors, I am adventurous, have done 4x4 trails and like traditional African food.

Sasria covers the extraordinary and that is ultimately exciting.

Describe yourself in three words.

Focused, kind and generous.

What do you love most about working in insurance and why do you think it is an exciting industry to be in?

We are changing lives; we are meeting the needs of customers when they are distressed. I am an empathetic person

INmag | 2012

79

For the graduate or matriculant with an interest in insurance and the will to get to know the industry and products from the ground up, there is huge potential.

your future

by Elvorne Palmer

One of the biggest and most exciting industries in insurance is currently experiencing a shortage of skilled people. For anyone who loves mega projects and wants a career that’s as cool as it pays well, there’s real opportunity in specialist engineering insurance.

80

INmag | 2012

The construction industry and those who use plants and machinery are often considered the barometer of a healthy economy. The more cranes you see on a city’s skyline, the more money and opportunities are usually available. Before the economic crisis hit in 2008, Dubai boasted that it employed more cranes every day than any other city in the world. But things have changed. Economies in different parts of the world are now booming.

Today, Africa is where investors are finding the biggest returns on their capital. In a few short years, Africa went from being the Dark Continent to a growth machine whose countries collectively rival the economies of Russia, Brazil and China. Most African countries are achieving double digit growth rates; while urbanisation and infrastructure development is happening so fast it’s almost scary. Be it hydroelectric power stations in Zambia, mines and oil in Namibia, gas mining projects in Mozambique, a R100 billion expansion project in Durban harbour

or rumours of South Africa’s first high speed train, big things are going to happen in the next few years. And engineering insurance is at the heart of it all.

Boiler origins in Manchester Engineering insurance is a group of products that everyone involved in construction (from the client, to the engineer and the contractor) needs to take out. This industry is exposed to a number of risks and finance for projects requires adequate insurance.

The sums insured and premiums are astronomical and it is a lucrative area of insurance to specialise in. Not only that, but engineering products are required to run a business that uses machinery, so everyone from a large factory to your local butchery needs to place their business with a specialist.

The kicker is that the industry needs new blood. For the graduate or matriculant with an interest in insurance and the will to get to know the industry and products from the ground up, there is huge potential.

“It all started during the industrial revolution in England, when the advent of steam-powered energy and its inherent dangers – explosion – led groups of industrialists to band together and come up with ways to compensate for the potential loss or damage an exploding boiler might cause,” explained Anne-Marie Fourie, director of AC&E Engineering Insurance. “The Manchester Steam Users Association of 1850 was one of

the first forms of engineering insurance.”

Fast forward 152 years and today the practices in construction and different types of plant works have developed leaps and bounds, as has the concept of engineering insurance. It’s a specialised field that requires most insurers, their underwriters and even brokers to have expert divisions to deal with this type of business.

The specialist Fourie describes the engineering broker as: “An individual with a passion for construction and engineering who has the ability to communicate with the engineering fraternity and can deal with the demands of this specialist business.

This broker needs to acquire an in-depth knowledge of the specialist engineering insurance products available.”

Nick Swart, head of Etana Construction, Engineering and Guarantees agreed that theirs is a specialised field and that it requires years of on-the-job training to master, but the rewards are worthwhile.

“As my colleague Trevor Kerst so aptly puts it, in this business you need a BCS – a Bachelor in Common Sense. Engineering can be perceived as an unsexy industry, but from a personal perspective, I would describe it as one of the most exciting jobs I’ve had. I’ve had to network, plug into people and keep abreast of changing technology, politics and developments, and their impact on the industry. In engineering you need the senses and nimbleness of a gazelle or you’re going to get eaten in that big jungle out there,” Swart said.

George Jennings, senior engineering manager of underwriting at Lion of Africa

(formerly RHMS) said that though there is room for all types of brokers, surveyors and underwriters in engineering insurance, in the end the specialist must be called in to handle the business. “The average broker would not be able to get involved in mega projects, but would rather employ the services of a specialist – there are intermediaries and corporate brokers who have dedicated teams of people who deal with engineering,” Jennings explained.

Getting there Russell Myers, managing director of Mirabilis Engineering Underwriting Managers (Santam), offered some advice to young people who want to specialise in engineering insurance. “It requires a lot of training because you really have to know the products. This goes for underwriting and insurers’ staff, as well as intermediaries.

For brokers, one place to start would be to get a job with a brokerage with a book of engineering business. But the clever way is to go and work for a specialist engineering underwriter or in their claims department to get to know the products,” Myers advised.

“A formal engineering qualification and practical experience could also be valuable when entering this market. It’ll mean that the candidate has a basic understanding of engineering principles,” he added.

“Get qualified to work in insurance and then get some knowledge about the engineering and related industries,” said Fourie. “Experience in plant and construction is also helpful. The few examples of the major brokers in this market are Aon, Marsh and HW Brokers.

They have highly skilled specialists dedicated to this class of business. That

said, AC&E also has various non-corporate brokers as clients with excellent skills and knowledge about the engineering market.”

Jennings shared his own story of becoming a specialist in the field: “I started in insurance 31 years ago, writing the cover lines on the compulsory third party insurance (yellow card) documents in Zimbabwe. There, you needed the yellow card to licence a vehicle.

Then I worked my way into the claims departments of several insurers, from personal lines to commercial, before I decided that engineering was for me. I went on to become an intermediary before heading up engineering underwriting at RHMS, and now I’m with Lion of Africa.”

“You need to know the insurance game first, before you can specialise.

You don’t need a background or qualification in engineering, but you need one in insurance. This you can get in any line of insurance, so start where you are and get to know your product. Then gradually start making your way towards companies that specialise in engineering insurance,” Jennings concluded.

INmag | 2012

81

A

voyage of discovery A closer look at marine insurance

by Gugulethu Mkhabela & Lize van Coeverden From cruise liners to container carriers and everything in between, marine insurance brokers see a myriad interesting risks.

The transportation of live abalone or rock lobster; arranging insurance for vessels involved in shark-diving operations; covering ship repairer’s legal liabilities and so much more falls under the ambit of marine insurance. Marine insurance revolves around goods on the move. It includes every branch of shipping practice such as cargo, transit, stock throughput, hull, liabilities, etc. You may also be surprised to find that it covers commercial and banking activities concerned with the sale, transport and delivery of goods not just by sea but air and land as well. With scope for growth and adventures in claims and underwriting experiences on the horizon, marine insurance may be the perfect match for you.

Qualifications required Grant Fugard, head of the marine business unit at Alexander Forbes Risk Services Western Cape, said there are currently no specific qualification requirements to become a marine broker or insurer – other than the statutory requirements in terms of the Financial Advisory and Intermediary Services (FAIS) Act and the recently implemented regulatory exams falling under the auspices of the Financial Services Board (FSB).

“While there may be no compulsory qualification required, a marine insurance practitioner (be it a broker or insurer) can benefit from acquiring an insurance-related qualification

82

INmag | 2012

through UNISA or the Insurance Institute,” he advised.

Paul March, director at First Marine Acceptances, one of Compass Insurance’s underwriting agencies, said a multitude of skills are required, such as knowledge of geography, climate, economics and politics. Knowledge of every commodity and conceivable method of moving these is essential.

Understanding institute clauses, the basis of marine policies throughout the world, is vital too.

According to Granville la Vita, managing director of Savannah Marine Underwriting Managers in

Johannesburg, marine insurance has its very own terminology. “This is not surprising when you consider the origins, the antiquity and traditional history of marine insurance, together with the entrenched conservatism of marine underwriters.” La Vita feels that this sector is not promoted at all, yet it plays a very critical role in our economy.

La Vita thinks tertiary education may be of some assistance but on-the-job training and product knowledge forms the basis of any successful underwriter or broker’s career. “The current FAIS regulations require that all financial advisers be accredited and that all

those giving financial advice should complete regulatory exams; yet, there is no requirement for candidates to have specialist product-specific knowledge in the areas of marine, engineering and aviation insurance,” he observed.

“A successful underwriter must possess a fair education, be widely read, have a retentive and reliable memory, an imagination controlled by common sense, the divine gift of saying no without causing offence and, beyond all, the element which can only be defined as ‘flair’,” he added.

Fugard believes getting into marine insurance is both easy and difficult.

“Very few people make a conscious

insurance category. Marine expertise is essential to our economy because it protects everything on the move that we consume, wear or use to make the world and business function.”

Fugard stated that experienced marine insurance practitioners have exited the industry (mainly due to retirement) and have not been replaced. He said there was also a lack of succession planning. Unfortunately, marine insurance is not viewed as an attractive position within the insurance industry. “Most young people entering shortterm insurance end up on the non-marine path because that’s where the money is (or is perceived to be).” Due to its specialist nature, there are also fewer opportunities available within the marine insurance arena and this is probably why many young people are dissuaded.

However, Fugard believes that marine insurance is overlooked to their detriment. “It certainly provides a challenging and rewarding career to anyone willing to persevere with it.”

decision to enter marine insurance – you sort of fall into it. If there’s a job available, you apply for it. However, this would generally apply only at the junior level when a company is looking to employ a clerk in their marine department and will then train and develop that person over a period of time.”

Challenges in the industry Fugard commented that from a broker perspective, the major focus is dealing with clients’ needs and ensuring that the client is receiving the correct advice regarding their marine insurance requirements. “Claims can and do present challenges and as a result can consume a significant amount of time and focus. Marine claims can be very complicated so it’s vital that the broker ensures his client has confidence in his ability and that of his support team,” Fugard said.

“Hijacking at sea has become a huge threat to assets,” said Frank Ponnen, head of Etana Marine.

He also serves as chairman of the Association of Marine Underwriters of South Africa (AMUSA) and sits on the cargo committee of the International Union of Marine Insurance (IUMI), amongst others.

The most recent report of the International Maritime Bureau (IMB) found that piracy at sea hit an all-time high in the first three months of 2011 with 142 attacks worldwide, 97 of which were off the coast of Somalia. “To add to this leap in cargo risks within African coastal waters, Nigerian pirates have also entered the hijacking-at-sea business. To offer the best marine service to clients in South Africa, brokers need to be alert to these developments and offer knowledgeable risk management advice and protection, calling on experts to support them with timely information.”

Skills development Ponnen said a huge challenge that marine brokers and insurers face in South Africa is skills training.

“Providing excellent and specialist training will both attract and retain exceptional new talent to this

La Vita boasts more than 40 years’ experience in this field and his mission is to launch a marine insurance academy to revive and attract more interest in this industry.

“Candidate underwriters would be put through an apprenticeship to acquire the basic technical and practical skills in a controlled environment, instead of being placed in a corner to learn by trial and error, or worse, learn from those who have equally low skills,” he said. Lectures will be compiled and delivered by two other associates and students will benefit from their combined experience, which spans over 100 years. “The biggest reward for me would be the satisfaction of being able to introduce at least 20 new candidates into the marine insurance market and enhance the skills of others.”

Piracy in numbers* Worldwide incidents: Total attacks worldwide: 2011 (439), 2012 (19) Total hijackings worldwide: 2011 (45), 2012 (nil) Incidents reported for Somalia: Total incidents: 2011 (237), 2012 (7) Total hijackings: 2011 (28), 2012 (nil) Total hostages: 2011 (470), 2012 (nil) Total killed: 15 Current vessels held by Somali pirates: Vessels: 9 Hostages: 151 *As at 19 January 2012 – Source: IMB Piracy Reporting Centre

Did you know?

1. Marine insurance is the oldest type of insurance. Out of it grew non-marine insurance and reinsurance.

2. The first insurance contract dates back to 1347 in Genoa, where a marine insurance contract was taken out on a ship called The Santa Clara.

3. In the 19th century, Lloyd’s of London and the Institute of London Underwriters (a grouping of London company insurers) developed between them standardised clauses for the use of marine insurance, still in use today.

4. Marine insurance usually covers the vessel and cargo being carried, but it can extend to liability and the lives of crew and passengers.

5. Piracy is still a big problem on the high seas today, but instead of swords and eye patches, 21st century pirates carry machine guns and satellite tracking devices to co-ordinate attacks.

6. The Costa Concordia which ran aground on 13 January 2012 is expected to cost insurers between US$ 500 million and US$ 1 billion (approximately R4 billion to R8 billion) – the largest marine loss ever.

While La Vita and his associates are planning to enhance and introduce more experts to this field, the Etana Academy conducts training in specialist areas such as marine insurance. This is available to young brokers within Etana’s own network.

Marine insurance promises to remain a challenging environment, with volatility in the global economy and increasing competition in the insurance market. But once a broker understands the risk, and the client’s needs, and has negotiated the most favourable deal on their client’s behalf with the best insurer for the risk, it becomes rewarding. “It’s being exposed to varying industries with their own particular risks that makes the marine insurance job interesting – it’s not motor insurance that’s for sure!”

Fugard concluded.

Stranger Insuring taste buds, hair, waistlines, hands, legs, noses, alien abductions, love and beards.

than fiction

by Lize van Coeverden

We’ve all heard the stories of celebrities insuring their body parts or items of immense value. It makes sense and it’s not nearly as bizarre today as it may have been some years ago. We’ve often wondered though how far you can push the limits of underwriters’ abilities and we were pleased to find that you don’t have to look too far to find insurance that is stranger than fiction.

Nobody wants to take risks unnecessarily and insurance is the everyday answer to mitigating risks, regardless of what shape they take.

Whether it is income protection (linked to a person’s ability to operate heavy machinery or a famous star’s sexy body) or short-term insurance for a priceless artwork or artefact, insurance is everywhere, protecting people and businesses against unforeseen loss and calamity. Lloyd’s

84

INmag | 2012

of London pioneered insurance as we know it today and became famous (or notorious) for taking on any risk. We take a look at the Lloyd’s market and some of the stranger things it has insured.

Stretch the limits of your imagination and what you thought insurance was capable of. In this industry, you never know what you might encounter next!

Reputation is everything

Lloyd’s started out in Edward Lloyd’s coffee house in the 17th century, as a place where ship owners and merchants could meet with financiers to secure marine insurance.

Much has changed over the last three centuries and today more than ever Lloyd’s prides itself on providing insurance for any and every new and complex risk all over the world. Lloyd’s insured the first motorcars in the UK and was involved in insuring the first commercial space flights. Lloyd’s was also responsible for the first small pox insurance in 1901, the brain child of visionary Cuthbert Heath, which promoted vaccines in a very dangerous time.

Cuthbert Heath is an important figure in Lloyd’s’ history. He was a prominent and innovative Lloyd’s underwriter and is recognised as being the father of non-marine insurance.

Considered to be the first man to see the potentialities of insurance in the modern world, Heath was a visionary. He is credited with creating the market’s first burglary policy and the first earthquake and hurricane insurance. He even insured against Zeppelin attacks during the First World War. In an effort to properly weigh new risk, Heath became the first Lloyd’s underwriter to accumulate detailed probability of loss statistics – a legacy that remains in practice today.

A stretch too far

Why you have to love Lloyd’s

Lloyd’s insured world record holder and solo adventurer Sarah Outen on her two-and-a-half year journey to kayak, cycle and row around the world. Outen holds the record for being both the first woman and youngest person to row solo across the Indian Ocean. This global expedition to power around the world is unique and demanded a little more than the average travel policy.

Outen’s dangerous journey gave Lloyd’s underwriters the unusual task of valuing a person enduring a physical and mental battle for an exceptional length of time.

Lloyd's once insured the transportation of 10 elephants in an aeroplane on a 36-hour transatlantic flight.

They’ve also insured a two-headed albino rattlesnake and the famous Irish racehorse Shergar that was kidnapped in 1983. The legendary US racehorse, Secretariat, was covered by Lloyd’s against infertility for a staggering sum of $10 million (R78 million).

Celebrities may be dependent on their physical assets or characteristics for their income, so it makes sense to have a special kind of disability cover in the event of a tragic mishap. Body parts that have been insured with Lloyds’ include:

- The crossed eyes of Ben Turpin (a silent movie star in the US) - The legs of Fred Astaire and Tina Turner - Rolling Stones’ guitarist Keith Richards’ hands - Egon Ronay’s taste buds - American football star Troy Polamalu’s hair - An unnamed celebrity’s chest hair - Ugly Betty star America Ferrera’s smile - Betty Davis’ waistline, against expansion - The tongue of Gennaro Pelliccia, a master Italian coffee maker - Dutch winemaker Ilja Gort’s nose - Professional ‘Santa to the stars’ Brady White’s beard INmag’s believe it or not…

While Lloyd’s isn’t the only insurer to underwrite peculiar risks, the most publicised and prolific.

Some other stranger-than-fiction policies that have been reported include: - A $100 000 (R780 455) love insurance policy that provided payment if a certain photographer’s model got married.

- A happiness policy that insured a model against developing worry lines.

- A policy worth $22 400 (R174 822) against accidental death caused by a falling sputnik.

- An immaculate conception policy, insuring the virginity of nuns in the event of conception, by means of divine intervention.

- A paternity suit policy to protect a man against paternity lawsuits.

- Insurance against alien abduction.

- Judge insurance, in the event that the judge in a very expensive court case meets with an untimely end or injury.

- Policies insuring against a golf opponent hitting a hole in one, war and peace, rainedout church socials and losing one’s lover.

In the early part of the 20th century, Lloyd’s underwriters insured cinema-goers against death from excessive laughter while at the cinema.

Art insurance has always been important, but we bet you’ve never heard of this one. In 2002, a sculpture by Marc Quinn – a life-size cast of the artist’s head, made from his own blood – melted when the freezer it was kept in was accidentally disconnected. Thankfully Lloyd’s had it covered.

Queen Victoria was insured against the risk of having twins as her first born, and a grain of rice with a portrait of the current Queen and the Duke of Edinburgh engraved on it was insured for a sum of $20 000 (R156 000).

A man who was afraid of ghosts insured himself against seeing one, fearing that it might frighten him to death, while a group of American funeral directors wanted insurance for medical expenses in the event of corpses on its premises coming back to life.

Lloyd’s has refused insurance to: - In 1935, the Daily Mirror reported: “An attempt to insure the ‘life’ of Mickey Mouse for a million pounds has been refused by Lloyd’s on the grounds that Mickey is ‘immortal’.”

- A British businessman who wanted to insure his daughter’s virginity – need we say more?

- The back teeth of an acrobat who hangs by her teeth as part of her act – she needs more than insurance on her teeth, we think.

Some gems from local underwriting managers: When reality blurs A South African insurer in recent years has received a request for insurance against vampire bites and werewolf attacks. It is probably safe to say that some people are taking the Twilight saga to a new level and the insurer is laughing all the way to the bank.

Comic book collection An enthusiast’s comic book collection was valued at R1 million.

Elvis Presley memorabilia One Elvis fan went all the way to Graceland and collected memorabilia from every Elvis concert he had attended. The collection was valued at R1 million.

Guitar collection worth R2 million An extensive guitar collection contains a guitar used by one of the Westlife band members as well as a range of classic guitars, antique guitars and some of the most modern guitars.

Bring on the bling One of our local underwriting management agencies once received a request to insure a mobile phone for R250 000. The phone was platinum and encrusted with diamonds. When asked for valuations and proof of ownership, they decided not to insure it after all.

For your eyes only A claim was submitted for a video collection in a cupboard damaged by a burst geyser. On inquiry it was found to be a collection of gay porn.

For the sake of progeny International best available bull semen from South America sent to South Africa in special low temperature flasks required special insurance for its transportation and storage.

INmag | 2012

85

an insight to terms used in this publication

GLOSSARY

86

INmag | 2012

G

G actuary

A social mathematician who uses mathematical skills to define, analyse and solve complex business and social problems involving insurance and employee benefit programmes. The work of actuaries involves the various possibilities that face human beings: birth, marriage, sickness, accident, loss of property, legal liability, retirement and death, and the financial effects which these have on various insurance and benefit programmes.

auditor

A person who checks the accuracy of figures, either the companyâ&#x20AC;&#x2122;s or those of its policyholders who are insured by policies permitting or calling for audits.

assessor

See loss adjuster

bursary

A sum given to enable a student to pursue his or her studies.

commercial lines

Types of insurance written for businesses instead of individuals, for which the term personal lines applies.

corporate

Pertaining to corporations. Corporations are the most common form of business organisation, and one which is given many legal rights as an entity separate from its owners.

cover

1. To protect with insurance.

2. The insurance itself. The same as coverage.

brokerage

Used interchangeably with broker when referring to a firm rather than an individual. Also called brokerage house or brokerage firm.

FSB

The Financial Services Board (FSB) is an independent institution established by statute to oversee the South African non-banking financial services industry in the public interest. The FSB is committed to promote and maintain a sound financial investment environment in South Africa.

graduate

A person who has received a degree or diploma on completing a course of study, as in a university, college or school.

glossary

experiential learning

Learning relating to or derived from experience.

financial adviser/planner

An individual or entity that offers direction and advice regarding finances, insurance, investments, retirement income and various other aspects in handling the overall finances of the individual.

fee

A charge or payment for professional services.

forensic auditing

The application of auditing skills to situations that have legal consequences. An example of forensic auditing is the investigation of a fraud or presumptive fraud, with the view to gathering evidence that could be presented in a court of law.

(Source: http://www.asosai.org/asosai_old/journal2001/forensic_ auditing.htm)

indemnify

To protect against damage or loss.

indemnity

Protection or security against damage or loss.

independent broker

An insurance producer who sells insurance as an independent contractor while representing one or more insurers of the brokerâ&#x20AC;&#x2122;s choosing, and who owns the expiration records of customers served.

The independent status is further illustrated by the selling functions performed, which are not

INmag | 2012

87

directed by the insurer, as would be the case if the agent were an employee. Those functions include contacting prospective insureds, effecting insurance, issuing policies, collecting premiums (in many or most cases), settling some losses of small amounts, and generally representing the insurers in the broker’s community. By contrast, the direct writing insurer directs the selling functions of its brokers, known as exclusive brokers, and owns the expiration records.

intermediary

See financial adviser/broker/independent broker

insurance

The transfer of risk, or chance of loss from one party (the insured) to another party (the insurer), in which the insurer promises, usually in a written contract, to pay the insured an amount of money for an unexpected event.

at another determined time if earlier, an amount larger than the total value of the premiums paid by the insurer for the promise.

premium

long-term insurance

reinsurance

Insurance products that deal with cover directly linked to a person’s life and wellbeing. As the name suggests, it involves paying or investing over a period of time for an eventuality or certainty specified in the policy. It can be life insurance (see above), disability, income protection, or dread disease cover. Savings and investment policies that are linked to an individual’s life, such as a father taking out a policy on his own life to pay for his son’s college, are also long term. This policy will pay out if a certain date is reached or if the father dies.

loss adjuster

A licensed, legal representative of the insured who negotiates with underwriters on behalf of the insured. The broker receives a commission from the insurer (underwriter).

Professionals who specialise in determining liability and the extent thereof, by investigating insurance claims. They can be hired by the insurance company to assess a claim, by the individual to assess the claim from their perspective, or by both as an independent.

insurance fraud

mentorship

insurance broker

Typically involves illegal attempts to secure insurance benefits by submitting false claims, selling illegal or phony coverage, or stealing insurance premiums.

insured

The person or parties protected by an insurance policy.

insurer

The insurance company or other organisation such as a syndicate, pool or association providing insurance coverage and services. (See insurance.)

intern

A person who is or has been interned. (See internship.)

internship

An official or formal programme to give practical experience for beginners in an occupation or profession.

liable

Legally responsible.

liability

The state of being liable.

life insurance

The promise to pay at the death of the insured, or

88

INmag | 2012

The amount of money an insurance company charges (monthly) to provide insurance coverage.

1. The transaction whereby an insurance company (the reinsurer), for a fee, agrees to indemnify another insurance company against all or part of a loss under a policy.

2. When referred to as a ‘reinsurance’, the term means the relationship between reinsured(s) and reinsurer(s).

risk

1. Defined variously as uncertainty of loss or chance of loss. Its existence is the reason people buy insurance.

2. The subject matter of an insurance contract such as the building, vehicle or cargo insured.

risk management

The identification, evaluation and management of all of the possible dangers and exposures to loss a risk may experience.

SAM

A distinct and separate part of a market.

Solvency Assessment and Management (SAM) is a set of new capital rules for insurers that requires them to match the capital they hold to the underlying risk they carry, in order to be able to pay out claims should policyholders suffer losses. This new risk-based solvency regime is aimed at maintaining financial stability and protecting consumers.

pension fund

short-term insurance

A formal relationship between a student and a professional adult or organisation to further the student’s knowledge, skills or career.

niche

A fund established by an employer to facilitate and organise the investment of employees’ retirement funds, contributed to by the employer and employees. The pension fund is a common asset pool meant to generate stable growth over the long term, and provide pensions for employees when they reach the end of their working years and commence retirement.

(Source: http://www.investopedia.com/terms/p/pensionfund. asp#ixzz1oRPEH08D)

personal lines

Types of insurance written for individuals rather than businesses, for which the term commercial lines applies.

policy

The formal written contract of insurance.

policyholder

The person or party who has a contract and who pays a premium to an insurer for them to provide insurance protection. (Same as insured.)

Policies that provide cover for household goods, businesses and cars are examples of short-term insurance policies.There is no specific date at which the policy will pay out and the policyholder does not have to die or become ill to claim. The payment is made in the event of an unforeseen eventuality, such as theft or damage.

underwriter

One who accepts or rejects risks for an insurer (originally, by writing the person’s name under the contract of insurance being issued).

Underwriters also assess and price risks for insurers, determining the premium payable by the client on the basis of the size and nature of the risk. http://www.ahtins.com/glossary/index.html

Forging your future

Applying for entrance into university can be daunting. Below is a guide to how the point allocation works for the National Senior Certificate (NSC).

The NSC, your matric certificate, is a qualification at level four on the National Qualifications (NQF) Framework.

Depending on the mark you receive in each subject, you are awarded a certain number of points.

NSC Scale

NSC per cent

7

80 – 100

6

70 – 79

5

60 – 69

4

50 – 59

3

40 – 49

2

30 – 39

1

0-29

The government requirement for a pass in the NSC with a university entrance is a pass in a minimum of four recognised NSC subjects. These four subjects must include English, with an achievement rating of three or better. However, each university and higher education institute will have its own requirements based on points for different courses. To get more information on universities and other higher education institutes, find individual websites on www.gostudy.co.za.

A different path University is not for everyone. There are other options, such as technikons and private colleges, which can offer you further training and education. Some of these may not require that you secure an NSC with university exemption. But be sure to check with each institution individually.

An NSC, without university exemption, will be issued to a candidate who has complied with the following promotion requirements:

1. Achieved 40 per cent in three subjects, one of which is an official language at home language level; and 30 per cent in three subjects, provided the schoolbased assessment component is submitted in the subject failed.

2. A condonation of a maximum of one subject will be applied if a candidate requires a maximum of two per cent, either to obtain a pass at 30 per cent or 40 per cent. Such a condonation will be applied in only one subject, provided the application of the condonation allows the candidate to obtain the NSC qualification.

3. Learners who offer a music programme from the Associated Board of Royal Schools Practical Music Examination, Trinity College of London Practical Music Examination or Unisa Practical Music Examination, must obtain the following ratings: (a) The Associated Board of Royal Schools practical music examination: at least 65 per cent. (b) Trinity College of London practical music examination: at least 65 per cent. (c) Unisa practical music examination: at least 50 per cent.

Certain concessions are granted to immigrant students and those learners who experience barriers to learning. For more on these, visit www.education.gov.za.

Subject choice To make sure you’re on track with your subject choice, check out the nationally approved subjects in terms of the organised fields of learning of the NQF below: Organised fields of learning

Subjects

Agriculture and nature conservation

Agricultural management practices; agricultural sciences; agricultural technology

Culture and arts

Dance studies; design; dramatic arts; music; visual arts

Business, commerce and management studies

Accounting; business studies; economics

Communication studies and language

All official languages and a number of nonofficial languages

Education, training and development Manufacturing, engineering and technology

Civil technology; electrical technology; engineering; graphics and design

Human and social studies

Religion studies; geography; history; life orientation

Law, military science and security Health sciences and social services Physical, mathematical, computer and life sciences

Computer applications technology; information technology; life sciences; mathematical literacy; mathematics; physical sciences

Services

Consumer studies; hospitality studies; tourism

Physical planning and construction

INmag | 2012

89

C O N TA C T S

E tana

+27 (0)11 351 2500 www.etana.co.za

FIA

+27 (0)12 665 0085 www.fia.org.za

F PI

+27 (0)86 100 0374 www.fpi.co.za

IISA

+27 (0)86 100 4472 www.iisa.co.za

I N S E TA

+27 (0)11 544 2000 www.inseta.org.za

L io n of A frica +27 (0)11 100 1900 www.lionsure.com

Marsh incorporating Ale xander Forbes +27 (0)11 669 3690 www.marsh-africa.com

C Met r o po l i t a n

+27 (0)21 940 5911 www.metropolitan.co.za

Mut u a l & F eder a l +27 (0)11 374 9111 www.mf.co.za

Old Mu t u a l

+27 (0)11 217 0000 www.oldmutual.co.za

SA IA

+27 (0)11 726 5381 www.saia.co.za

Sasria

+27 (0)11 881 1300 www.sasria.co.za

CONTACTS

90

INmag | 2012

C

Sasria. Because sustainable growth requires constant support.

The path of growth is rarely without challenges.

We have been with you since 1979 and we value the support you provide in taking special risk insurance cover to the insuring public.

In our day-to-day dealings we apply the principle of best practice and keep pace with the latest developments and procedures from within the insurance industry. pprepared ep pared for You can be assured that at Sasria we are alwayss pr what life might have in store for you.

Sasria. Covering the extraordinary.

For more information visit www.sasria.co.za, e-mail: info@sasria.co.za or contact us on+27 11 881-1300

covering the extraordinary

What do you want out of life?

A poweRED career in a dynamic and diverse industry?

Insurance that covers Agri, Construction, Engineering, Corporate, Marine, Trucking, Willdife & Tourism and more

Post all your questions & thoughts about insurance as a career at ‘Etana PoweRED’ on Facebook & we’ll provide you with the info you need

Have a look, learn and discover at www.etana.co.za Etana is an Authorised Financial Service Provider