INMAG 2013

2013 INMAG \ 2013 \ VOL 05

\ ISSN 1812-5964

FORGET WHAT YOU KNOW

ABOUT THE INSURANCE INDUSTRY

DO YOU HAVE WHAT IT TAKES? TAKE OUR PERSONALITY TEST

FIND YOUR PERFECT CAREER

Insuring the weird and wonderful 造 The biggest insurance claims in history

While you’re climbing your way to

success RISKSA magazine is there for you.

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Hi there We live in an environment where things move pretty quickly. You are likely to change careers several times in your lifetime; change careers, not just jobs or employers. So how do you choose what to study or what to do with your life when the tech you will be using hasn’t even been invented yet?

My advice is to choose something that removes monotony from the daily grind. It is almost never about the money. If you’re anything like me, you’ll need the stimulation of a constantly changing environment to keep the excitement going. My wife blames my ADD. All I know is that my career as a publisher and editor-inchief of a stable of niche magazines exposes me to folk from different walks of life daily. And the folk I meet from the insurance industry seem to be having almost as much fun in their jobs as I do writing about them.

Publisher Andy Mark

It’s always about the money. Yeah, I know. I just said it wasn’t about the money. And it isn’t; until you aren’t earning any. Then it very quickly becomes just about the money. You see, having fun during your day job is an imperative ingredient in job satisfaction. But so is earning enough money to take that overseas holiday, buy that house and eventually put your kids through the same education process you’ve just been through.

Education isn’t cheap; just ask your parents. That is why I say it is also

| Managing editor

about the money. A career in financial services can be just as rewarding as it is lucrative. Read this issue of INMAG and see how you can make money and have fun in one of the oldest (legitimate!) industries in the world.

Good luck with your career.

Nicky Mark | Editorial assistant

Nick Krige

Writers Hanna Barry, Neesa Moodley-Isaacs, Sarah Bassett Copy editor Margy Beves-Gibson | Design Advertising & sales Blake Dyason

Michael Kaufmann

blake@comms.co.za

Herman Dorfling

michaelk@comms.co.za

| Riccardo Raciti

riccardo@comms.co.za

MEDIA

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PO Box 60320, Tableview, 7439 Tel +27 (0)21 555 3577 | Fax +27 (0)86 618 3906 E-mail: info@comms.co.za | Website: www.comms.co.za

Copyright cosa communications 2013. 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 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 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.

CONTENTS

8

Personality meets possibility – what do your unique traits best equip you for

16

The biggest claims in history

10 18

Whose career is it anyway?

Eden’s end? – A loss adjuster’s experience of the Christchurch earthquakes

INSURANCE COMPANIES

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12

28 ................................. 30 ................................. 32 ................................. 36 ................................. 44 .................................

2013

Insuring the weird and the wonderful

21

The funny side of insurance

p72 Old Mutual

p80 Sasria

14 22

The glitz and glamour of the high net worth insurance world

How to get a job in the Insurance industry

p88 Standard Bank

p96 Glossary

p98 Contacts

insuring YOUR FUTURE

The insurance industry in South Africa is going through a period of rapid professionalisation, which makes it an ideal sector to begin a long and successful career. INSETA is the perfect place to begin that career.

The insurance sector forms a vital part of South Africa’s rapidly expanding and world-class financial services sector and, as such, has come under a bit of scrutiny of late. The main issue is the lack of any professional qualifications required to operate in the insurance space. This led to careers in insurance being seen as a fall-back option, somewhere people land up after their initial plans have not quite worked out. Of course, for many people this is far from the truth.

However, the industry has gone through a significant revamp in the last few years. It is now a prerequisite for everyone operating in the industry to have a qualification certifying that they are able to do the job they are employed to do. Many professions in the insurance industry additionally require personnel to acquire continuous professional development (CPD) points through various means to stay on top of their vocations.

What’s on offer?

The career opportunities in the insurance industry are varied. There are very few objects, professions or events that are not, in some way, covered by insurance.

An insurance company that specialises in providing cover for exotic pets will require staff members who are passionate about these pets, and will pay them for that knowledge. In the insurance industry, it is possible to make a career out of your passion; whether that includes music or marsupials. These diverse career paths are integrated into the global economy with a wide scope for growth. It can also offer big earning potential. The insurance sector contributes one-fifth of South Africa’s gross domestic product (GDP) and between 2 500 and 3 000 new employees need to be trained annually to sustain the industry at its current level. Over the years, the insurance industry has evolved and become incredibly exciting. It offers almost limitless career potential across a wide spectrum of related fields.

INMAG aims to help you make an informed decision about your future, and show that the financial services industry is stimulating and vibrant. INMAG will supply you with all the information you need to enter this dynamic industry and give you a head start in a career perfectly suited to you.

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INmag | 2013

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Insurance Learning Academy

Personality meets

possibility what do your unique traits best equip you for?

By Sarah Bassett

What do your unique traits best equip you for?

Once you start a career, you will end up spending a vast amount of your daylight hours at work, so you might as well find something you enjoy doing. Working in a career that engages your interests will inevitably lead to increased satisfaction and productivity.

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INmag | 2013

W

ith this in mind, Dr John Holland has come up with the following quiz, which groups occupational interests according to personality traits and values, to help you figure out what sort of career path to choose. Read through the options below and answer as honestly as possible; in the end the only person you will be cheating is yourself. This will help identify the natural traits you display most strongly. Tick the letter next to each statement and add up.

Integrating these categories in finding a career is important. You might be a creative free thinker who enjoys analysing problems and finding practical solutions. Being able to identify these traits will help you to weed out jobs you would potentially not enjoy and can lead to a more fulfilling career.

1. You like: a) Working with tools, machinery or your hands b) Activities that involve scientific concepts and ideas c) Free, unstructured environments d) Guiding and teaching others e) Taking control of people and situations

2. You dislike: a) Things being too theoretical or intellectual b) Jumping straight into a solution to a problem c) Structure and rules d) Conflict e) Listening to others’ opinions

3. You like: a) Figuring out how to fix something manually b) Analysing situations c) The space to be yourself d) Gaining an understanding of other people e) Building relationships with a wide variety of people

Your score to find your work personality Mostly a) The practical problem solver

The big boss

You enjoy physical engagement with your work and like being able to solve practical problems by doing more than thinking. The financial services industry may feel too abstract for your natural inclination, though your wealth of practical knowledge might be of great value in a niche field. You might get great satisfaction by identifying practical support services required within the industry, such as specialist maintenance and repair of insured items.

Your ambition, decisive nature and natural ability to lead mean you could go far within the insurance industry. Your ability to build diverse relationships with a variety of people could make you invaluable.

If status and power are too high on your priority list, however, and listening to others is too low, you could be opening yourself to danger, given the responsibility for others wellbeing that the industry carries.

Mostly b)

The power of combination

The analyst

a) Thinking about solutions to a problem instead of doing something about it b) Acting before thinking c) Over-analysing problems d) Big groups of people e) Having to be too creative

Your love of careful analysis and conceptual problem solving could make you a prized asset with the insurance industry and you could find great satisfaction in this field. If you are comfortable with numbers, actuarial work might be an excellent fit (explain what they do). Your detail-oriented analysis approach may also make you an excellent asset as an underwriter, reviewing the level of risk and appropriate premiums required for any asset and insurance cover required.

5. You like:

Mostly c)

4. You dislike:

a) Concrete approaches to problem solving b) Considering all possibilities when problem solving c) Expressing yourself through languages, music, art or drama d) Close, personal relationships e) The idea of status and power

6. You dislike: a) Abstract thinking b) Working with big groups of people c) Being confined to one space d) Predominantly physical activities e) Taking a backseat in terms of leadership

7. You like: a) Scientific or mechanical work b) Working alone c) The aesthetics of your surroundings d) Being thought of as helpful and friendly e) Talking

Mostly e)

The artist Your free-thinking, expressive, creative and visually oriented nature may mean that the structure, precision and controls required within the financial services industry are frustrating for you. A career in a creative and individualistic industry such as acting, performing, advertising or design may bring you greater satisfaction.

Mostly d) The helper Your innate desire to help, support and educate others would make you excellent as a broker within the insurance industry. Your ability to form relationships easily, and desire to understand others would make you skilled at understanding clients’ needs and how best to ensure that they are free to achieve their goals without interruption or risk.

If, like many people, your score indicates that you are a combination of two or more of these profiles, consider how the combination of traits might give you the extra edge. The combination of the big boss and analyst profiles, for instance, offers you a powerful combination; you are naturally capable of careful and meticulous analysis and planning and can also easily build relationships and influence and persuade others.

This could make you particularly effective and successful in a leadership position. If you are a helper and artist combination, you might be a powerful innovator, able to thoroughly grasp the challenges and needs of others and offer innovative and novel ideas for solutions.

Understanding your personality and unique traits is an excellent first step in identifying the career paths worth further exploration and those you should disregard entirely. This alone can make the decision process seem far less daunting and open-ended.

Career counsellor, Michelle Duraan, recommends seeing a registered counsellor for further help in matching your profile with possible career choices.

If you are interested in taking further personality tests, or would like to try an aptitude test, free online samples can be found on a number of websites: http://www.businessballs.com/personalitystylesmodels.htm http://personality-testing.info/tests/JUNG.php http://www.aptitude-test.com http://www.competencesa.co.za/services/ psychometric-assessment

INmag | 2013

9

Whose careery?

a w y n a t is i

med into our heads from um dr n tio no a is er re ca Choosing the right use we were good ca be er re ca a t es gg su rs an early age. Our teache t a career that will make es gg su s nt re pa r ou t; ec at a particular subj er that will offer re ca a se oo ch to us ll te lots of money; our friends so much impact on the ve ha ll wi at th n io cis de a fulfilment. Making the pressure can seem g; tin un da is es liv r ou of rest ralysing. overwhelming and even pa

By Sarah Bassett

W

hile others’ advice is valuable, ultimately, this is your life and choosing a career is a deeply personal decision. It may be comforting to know that the key to the answers lies within you. “By examining your unique personality traits, personal interests and values, and matching them to a course of study, potential jobs and an overall career direction, you can create genuine career satisfaction,” says registered career counsellor, Michelle Duraan. “It is absolutely vital that you carefully examine each of these in relation to the course you’re studying, the job you’re applying for and the general career direction you’ve chosen to follow.”

Personality Personality refers to your unique characteristics that influence the motivation behind all your behaviours and thoughts. Personality determines the extent of your behaviour, actions and thoughts in particular situations and in interpersonal situations and interactions. Our personalities are relatively concrete; and while certain life experiences may influence our outlook on matters, the person we are determines how we react in response to these experiences. Do you tend to be outgoing

10

INmag | 2013

and sociable? Do you value time alone? Are you analytical or creative? Understanding your characteristics will help you identify what roles and environments you will thrive in. If you are a creative person, an admin-rich job is probably not going to satisfy you forever. If you love being active, sitting behind a desk all day at work will keep you happy only for a short while.

Personal interests Interest is part of the total make up of a human being and concerns values, needs, abilities and your self-concept (the image you have of yourself).

Interest is directly related to, and ultimately determines, work satisfaction and persistence. Your occupational interests influence your disposition (whether positive or negative) towards job-related activities. Finding something in your job that really piques your interest will therefore not only improve your overall motivation, but your attitude towards your job as well.

Values It is important to distinguish between values and interests, as these are concepts which are easily confused with one another. Interests are related to specific activities, while values usually have bearing on preferences for ideals and lifestyles. Being aware of your values is vital in making a career decision,

but it must be noted that certain values can be achieved through alternate roles other than your career. If you value social interaction, but your job requires you to predominantly work alone, you can meet this need by joining clubs or groups on a more social or personal level, outside of your job.

“So, your personality, personal interests and values, in addition to your natural skills and abilities, can light the way for the right career choice,” explains Duraan. “Once you understand yourself better, you need to understand the external opportunities and possibilities, in order to match yourself with the right ones.” Get active and do some thorough research. What is out there? How can you match your personality, personal interests and values to the working world and create a meaningful and rewarding career? It’s important to not limit yourself too much in the initial research stages; think out of the box.

For instance, have you ever considered that your passion for the environment, aviation or art could all be channelled into a rewarding career in the world’s largest industry: insurance? No? Your passion for extreme sport and specialist sports equipment need not mean you should be a salesperson or SCUBA instructor. You might apply your wealth of knowledge to the sports insurance and specialist sporting equipment insurance niche. Imagine

spending your days talking to sport fanatics just like you and testing out and understanding everything about the latest specialist equipment in the market.

That’s what specialist sport companies do to ensure they have the expertise to offer the right protection at the right prices.

Do you love sailing and all things nautical? You might specialise in insurance for luxury sailing yachts, or you might expand your love of things marine and work in the sphere of industrial shipping and marine risk, filling your days with discussions about marine vessels of every kind; assessing their values and associated risks.

Insurance positions involve everything from oneor two-person offices to company headquarters employing thousands of people. Actuaries, adjusters, agents, attorneys, underwriters, human resource professionals, and careers in computers and marketing are just a few of the many opportunities available in the insurance industry.

Whatever job skill you may be suited to, the insurance industry can probably offer you means to merge your work with what interests you most.

Once you’ve broadened your horizons, you need to narrow things down again. What excites you the most? A crucial step is to go out and get yourself some real-world experience in the fields you’ve identified as interesting. Work shadowing, interning or simply just chatting to someone within the industry can be effective ways to determine the best fit for you.

The final step is to get to grips with the practical steps required to equip you with the right skills and qualifications for your dream career. Think about what kind of training you will need. Find out which institutions offer courses that will help you on your way and which have the best reputations in the industry you want to work in. Find out what costs will be involved, what payment options exist, and what opportunities are available for scholarships and bursaries.

Once you’ve completed this process and identified the practical steps, you’re on your way. Remember, if there seem to be practical obstacles, there are often multiple paths to the same outcome; you can chalk it up to experience and find a different way to your dream job.

INmag | 2013

11

Insuring the

weird and the

wonderful

By Sarah Bassett

Whether it be the existence of the Loch Ness monster, death at the hands of a werewolf or an artwork engraved on a grain of rice, insurance is the answer to mitigating the risk.

Jennifer Lopez’s bottom is insured for an incredible $1 billion (R8.9 billion).

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INmag | 2013

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 brainchild of visionary Cuthbert Heath, which promoted vaccines in a very dangerous time.

unusual: it has insured the transportation of 10 elephants in an aeroplane on a 36-hour transatlantic flight, 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 (R89 million). 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 (R179 000). Fearing a typically poor performance by his beloved England at the 2002 soccer World Cup, Paul Hucker insured himself for the sum of £1 million (R13.9 million) in the event of resultant psychological trauma.

your living expenses have significantly increased.

This insurance will help stem the initial costs of such an improbable occurrence.

In the early part of the 20th century, Lloyd’s underwriters insured cinema-goers against death from excessive laughter while at the cinema. Today, you can obtain coverage against the odds of your wife, or significant other, giving birth to more than the expected number of children. After all, if you are expecting twins and are presented with quintuplets,

If the recent swathe of vampire-themed entertainment has you hooked, you might be convinced that such creatures actually exist. And where there is belief, there is insurance. Lloyd’s offers cover against death at the hands of a ghost, vampire or werewolf and, similarly, against alien abduction.

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. Employers can gain cover against two or more employees winning the lottery and deciding there’s no reason to keep working. Lloyd’s even wrote a policy against the possibility of the capture of the Loch Ness monster for the whiskey-producing company, Cutty Sark, which was running a promotion for the capture of the creature.

A touch too far 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.

• The back teeth of an acrobat who hangs by her teeth as part of her act.

Hugh Hefner’s ex-girlfriend, and Peepshow star, Holly Madison, has insured her breasts for $1 million (R8.9 million) “I think they’re getting the credit they deserve.

They’re my primary money makers right now,” she reasons.

Ordinary people looking for insurance usually seek cover for fairly standard things like cars, houses or perhaps even a boat. Celebrities, on the other hand, insure legs, voices, and some things claims adjusters may not even want to examine. And then there are those, celebrity or not, who seek cover for all manner of bizarre and unlikely events and occurrences.

Lloyd’s of London pioneered insurance as we know it today and became famous, or perhaps more correctly infamous, for taking on peculiar risks. We take a look at the Lloyd’s market and some of the stranger things it has insured. This will 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.

They’ve done it all (almost) 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 first woman and the youngest person ever to row solo across the Indian Ocean. This epic journey was unique and required something beyond the average travel policy. Lloyd’s underwriters had the unusual task of valuing a person enduring a physical and mental battle over an exceptional length of time.

Ugly Betty’s leading lady America Ferrera has her smile insured for $10 million (R89 million).

Body parts

We’ve all heard the stories of celebrities insuring their body parts for seemingly ridiculous sums, but for many this is a legitimate form of income protection. While it turned out that a policy insuring Tom Jones’s chest hair for $7 million (R62 million) was merely rumour, we look at how far and to what value celebrities have pushed the limits on the Lloyd’s insurance market.

• Legs seem to be almost standard for insurance cover. Supermodel Heidi Klum’s legs are insured for $2.2 million (R19.75 million); Michael Flatley, star of Riverdance and Lord of the Dance, insured his for $45 million (R404 million). Real Madrid insured Cristiano Ronaldo’s legs for $144 million (R1.2 billion). Seemingly, the most valuable gams around belong to Mariah Carey, insured at $1 billion (R8.9 billion).

• Costa Coffee’s coffee taster, Gennaro Pelliccia, has his tongue insured for $14 million (R125.6 million) dollars. A leading European winemaker’s nose is insured for $8 million (R71.7 million) • In 1968, Lionel Laframboise insured his moustache with $1 million (R8.9 million).

He was a candidate for the Liberal Party leadership, and was concerned his moustache might come to damage from those wishing to tarnish his image.

• In 1957, world-famous food critic Egon Ronay insured his taste buds for $400 000 (R3.6 million).

• In 1932, representing the Cheerio Yo-Yo Company of Canada, 13-year-old Harvey Lowe won the 1932 World Yo-Yo championships in London and toured Europe from 1932 to 1935. Lowe was so valuable to Cheerio that the company insured his hands for $150 000 (R1.3 million).

• In the 1940s, actress Bette Davis bought a $28 000 (R250 000) policy buffering herself against losses due to gains, her own weight gain, that is.

But Lloyd’s certainly has experience with the

INmag | 2013

13

glitz& glamour The

of the high net worth insurance world

By Neesa Moodley-Isaacs

e gin’ bad, buy all of th ig fr so re ai on lli bi a “I wanna be the cover of Forbes on be na an w I d. ha things I never d the Queen.” an ah pr O to xt ne ng magazine, smili

T

ravis McCoy and Bruno Mars hit pay dirt with the song Billionaire because everyone can identify with the desire to be rich. But even the super-wealthy need to protect their assets and that means taking out the appropriate insurance cover. Working in the high net worth insurance space means dealing with the super rich on a daily basis, assessing their risk and making sure they have the cover they need. An insurance assessor in this field of insurance would have to know their Gucci from their Armani and the difference between Louis Vuitton and Hermes. We look at what a high net worth client might have on their person on any given day and what it would cost to insure those essentials under their all risk insurance.

A high net worth woman can be the woman every man wants on his arm, and every other woman loves to hate. She’s also typically high maintenance; a woman who loves to live in the lap of luxury, lives life to the fullest and enjoys being pampered. But luxury items need to be insured so that they can be replaced at short notice.

To assess the daily risk associated with a high net worth woman, Inmag created a subject profile − Mrs Dollars, who loves luxury brands and the best of

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INmag | 2013

the best. Most women carry a handbag with them at all times and there is no better high-end handbag than a classic Louis Vuitton. The Neverfull MM in the iconic Louis Vuitton print, measures 32 x 29 x 17 cm and would cost R8 650. However, the Elysée wallet in the same iconic print would set Mrs Dollars back R12 200. The wallet is more expensive than the handbag because the wallet is from a new line and is entirely made from leather. The handbag, on the other hand, is made of canvas because it is a more durable material than leather. Only the handbag trimmings are leather. This is a hallmark of Louis Vuitton goods as one of the things he initially became famous for was using canvas instead of hide for his bags. One of the main reasons for this was that the hide frequently impregnated the bag contents with its smell.

Must-have items A Rolex Oyster Perpetual Datejust Lady 31 bracelet watch is priced at R85 400. The Oyster was the first waterproof watch invented in 1926. In 1935, Rolex perfected the perpetual movement, where the watch relies on an internal motor that winds the watch by driving energy from your wrist movements, keeping the watch perpetually wound.

The must-have phone this season is the iPhone 5, which retails at R10 799 for the 64G model.

Mrs Dollars also has a 128GB iPad valued at R8 999, so she can read her favourite fashion magazines online.

A man should set aside the equivalent of three months’ salary to buy an engagement ring; so say the diamond jewellers. Mrs Dollars is wearing a Shimansky Millennium engagement ring with a 1.01 carat diamond, colour G and clarity VS2 set in platinum, valued at R168 500. She has two matching Millennium platinum wedding bands with 15 micro-set diamonds, valued at R14 950 per band. And, of course, the Millennium earrings to match with a 0.5 carat, colour D, clarity SI1 diamond set in platinum on each ear and valued at R89 780 for the pair.

Asset all risks Willem Coetzee, an executive business consultant at Zenith Insure, says the items on Mrs Dollar’s person all fall within the definition of household goods in terms of the Zenith policy. “As such, items one to seven would be covered under the asset all risks extension without any need to specify it under the all risks section,” he says.

However, Zenith will insure her iPhone and iPad under an all risks item, unspecified cellphones and portable computer equipment, with a sum insured of R30 000 per event and a monthly premium of R135. “This item will also provide cover for any other items of this description without the client having to specify any of it,” Coetzee adds. The Zenith policy automatically includes cover for up to R10 000 for keys and locks of vehicles at no additional premium or the need to specify the same under the all risks section of the policy.

Individual risk cover Darrel Dawson, director at Echelon Private Client Solutions, says Echelon’s strategy is to provide risk

cover on an individual basis. “We would assess the individual’s risk rather than provide risk cover for each item on its own. Very often a person’s age and occupation will reveal their appetite for risk and this is apparent in the items they purchase.

For example, a high-flying 30-year-old hedge fund manager is more likely to buy a sporty BMW M3 than a 50-year-old bank manager,” he says.

Dawson says an Echelon policy would give the client a sum insured under unspecified all risks. “They are highly unlikely to lose all those items at the same time unless the loss takes place on holiday or while on an airplane,” he says.

Christelle Fourie, the managing director of MUA Insurance Acceptances, says there is no need to specify items on the MUA policy as the general all risks section provides cover for all the items carried

by Mrs Dollars. “We would normally advise our clients to choose a sum insured with the highest value for which they are exposed and then use this as a guideline to determine their all risks sum insured. In this example, we would use the ring at R168 000 as a guideline and perhaps suggest R200 000 as the all risks sum insured,” she says.

No item limits Fourie points out another important consideration is that the MUA policy does not have any item limits so if Mrs Dollars has a sum insured of R200 000, she will be able to claim up to R200 000 for any one item. “R200 000 of all risks cover will cost her in the region of R4 000 per year or about R350 per month with no need to specify all those items. If she did specify each item, it would add up to a substantial monthly premium. As a broker, you should remember

that the client may also run the risk of forgetting to include new items purchased in their list of specified items,” she cautions. Fourie says another important consideration is to remember that all insurers require updated valuation certificates. “The onus is on the client to lock expensive jewellery items away in a safe when not worn – usually when the value is in excess of R50 000,” she warns.

Costly keys In her handbag are the keys for her 2010 Audi TT. The cost of replacing the keys, if her handbag were stolen, would be approximately R2 400. However, if she were driving a different car, the cost of replacing her car keys could increase dramatically due to the fact that most modern cars have keys that are individually coded to the car. The car manufacturer uses the vehicle identification number (VIN) to custom make a new key for the car. For example, an Echelon client who lost the keys to her Mini found that it took two weeks for her keys to be replaced as they had to be specially ordered using the VIN and were cut and coded in Germany. The eventual cost of replacing the keys was about R15 000.

My Jimmys Mrs Dollars would be wearing nothing less than a sexy pair of Jimmy Choo shoes. These handmade designer shoes are the ultimate in luxury retail.

Often referred to as “my Jimmys”, they worked their way into pop culture after repeated references in the popular Sex and the City television show. Fans include Gwen Stefani, Natalie Portman and Julia Roberts. The rather stylish Jimmy Choo Damek shimmer suede sandal with hotfix crystals is priced at R14 828 a pair.

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The

bigge$t claim$

By Neesa Moodley-Isaacs

in history From highperformance supercars to a mangy cat, some of the world’s most expensive insurance claims have included the unbelievable and the unusual.

But whether it’s funny, bizarre or serious, insurance exists to provide cover for anything you can think of around the world.

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The shocking effect of power surges

According to the Insurance Information Institute, lightning surges in America cost nearly $1 billion (R8.9 billion) in insurance claims in 2011. Loretta Worters, the vice president of the Insurance Information Institute, says plasma and high-definition television sets, home entertainment centres, multiple computer households, smartphones, gaming systems and other expensive devices, which can all be destroyed by power surges, continue to have a significant impact on claims losses. Another reason behind the increased claim costs may be due to a spike in consumer electronics prices.

Darrel Dawson, a director at Echelon Private Clients, says usually accidental damage is limited on insurance policies to R10 000 or R15 000. “However, the cost of goods affected by a lightning surge is far more than that. A plasma television set alone could cost the client R10 000 to replace,” he points out. Dawson says Echelon has previously had a R250 000 insurance claim for damage due to a lightning or power surge.

Dawson has the following advice: • Select a surge protector that has an indicating light and/or audible alarm to show when it needs a replacement.

• Look for a surge protector with a manufacturer’s warranty. Some warranties cover only the device while others also cover any damaged equipment connected to the device.

• The best surge protection is to unplug equipment from the wall during an electrical storm.

The cost of art Some of the largest insurance policies in the world exist to cover art, particularly rare paintings and sculptures that would be a loss to the entire world if they were to disappear.

Gordon Massie, the managing director of Artinsure, says global art theft has reached very high numbers.

“The largest art theft in 2012 was from a museum in Rotterdam and involved artwork valued at $250 million (R2.2 billion). There were several other museum heists in excess of $50 million (R448 million) in 2012. The largest recorded theft (aside from wartime looting) is valued at $500 million (R4.4 billion) from a museum in Boston,” he says.

Massie points out that art theft frequency is on the rise with Paris galleries and museums being prime targets. Additional occurrences of art theft have been during government changes throughout the Arab spring.

His advice to brokers with clients who have art collections is to: • Catalogue the collection well.

• Value it frequently.

• Make sure you are updated when the client revalues or adds to their collection.

Crash, boom, bang With a collective total damage to the elite sports cars adding up to more than $4 million (R35.8 million), it was said to be the world’s most expensive car accident: eight Ferraris and a single Lamborghini were involved in a chain-reaction pileup on Japan’s Chugoku Expressway in Yamaguchi Prefecture in December 2011.

The convoy of expensive sports car owners and enthusiasts were travelling on the rain-soaked section of highway in the city of Shimonoseki.

The driver of the lead Ferrari lost control when changing lanes and the following vehicles, slammed into each other, one by one. All the drivers were between the ages of 37 and 60, and six were injured, with two in serious condition. Police say it took them over six hours to clear all the debris off the highway, as it was spread out over a stretch of road roughly 400 metres. According to a witness, the Ferraris, which included a F430 Scuderia and

F360, valued from $190 000 (R1.74 million), were driving at speeds between 140 and 160 kilometers per hour in an 80-kilometre zone. The driver of the lead car was a 60-year-old self-employed man; he and the nine others were later charged with “accidental infliction of injury while driving”. The incident involved 14 cars in total. In addition to the nine exotic cars, there were two Toyotas and three Mercedes-Benzes.

English actor and comedian, Rowan Atkinson, takes the prize for the most expensive single car insurance claim. In 2011, he crashed his McLaren F1 for the second time, leading to a repair bill of £910 000 (R12.6 million) for more than a year’s worth of repair work.

When it comes to classic and luxury cars, clients need to be sure that they are getting the best insurance cover at the best premium. American Collectors Insurance offers the following advice: • Drop unnecessary cover. If the car is stored in the garage all year, the client could save money by insuring only for theft or third party damage.

• If the client drives the car only on the weekends or to classic car shows, they could take advantage of insurance policies based on limited mileage.

• Remove other drivers from the policy. Luxury cars are unlikely to be driven regularly, if at all, by anyone other than the primary driver. The client could reduce their premium by ensuring that no other drivers are listed on the policy.

Up in flames The Waldo Canyon Fire was a forest fire in Colorado in June 2012, which resulted in the evacuation of more than 32 000 residents of Colorado Springs and the destruction of about 346 homes. The insurance claims related to the Waldo Canyon Fire totalled more than $352.6 million (R3.1 billion).

The top three most expensive local claims at MUA Insurance Acceptances all involved fire damage.

Managing director of MUA, Christelle Fourie, says the company’s largest loss on record was for R6.7 million in a fire damage claim. “This is not so bad though, when you consider that we insure buildings valued at more than R100 million,” she points out.

both buildings and contents cannot be understated.

• If the client goes to the trouble of having a valuation done, the adviser should encourage them to accept the valuation that comes back.

“Often, clients think the value on their building is overstated. They think they can get a builder for less per square metre than the estimate. As a result, they insure on this lower value but at claims stage, this means they get paid out far less than is adequate to properly replace the house.”

• A homeowner’s policy should be reviewed and updated at least every three years.

High-priced kitty Pet insurance is not something you would expect to rank as one of the biggest insurance pay outs of all time, but a $22 000 (R197 120) claim for a cat’s renal surgery was paid in 2010. Not only is this the largest single pet insurance claim ever filed, the cat in question was an ordinary mixed breed with no special traits or characteristics.

Pet insurance claims can range from expensive to just downright odd. In 2011, Harlem, a pug from America won the Veterinary Pet Insurance Hambone Award for the weirdest claim. Harlem’s owner had been away on holiday and noticed on her return that he was passing a lot of stones. She could also feel more stones in his stomach. An emergency animal hospital was able to give the dog medication and he passed more than 100 stones.

Clients who want pet insurance should look out for the following: • Exclusion period – some policies will accept a claim only from a certain date after the policy is taken out.

• Maximum age – a new pet insurance policy may specify that it can be taken out only for a pet under a certain age.

• Co-insurance excess – this means the client will have to pay the policy excess plus a percentage of the claim.

The fire at St Francis Bay in November last year was estimated to have cost more than R500 million in claims, having destroyed at least 75 homes.

Fourie has the following advice: • The importance of having valuations done on

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Eden’s e

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end?

A loss adjuster’s experience of the Christchurch earthquakes

There is no better way to illustrate the excitement and opportunity offered by a career in the insurance industry than a first-hand account of a South African loss adjuster who was flown in to New Zealand after a series of devastating earthquakes decimated Christchurch.

Hidden fault line On the morning of Saturday, 4 September 2010, at around 04:36 New Zealand standard time, an earthquake struck in Darfield, 40 kilometres west of Christchurch. It ruptured a fault line for 29 kilometres directly towards Christchurch; a fault that no one knew was there. Within 30 seconds, Christchurch and its surrounds suffered the most structural damage the country had seen in 70 years.

Within two weeks, insurers were inundated with at least 61 805 claims from Christchurch and surrounds. It was already an insurer’s nightmare.

One of the country’s largest claims management firms, Cunningham Lindsey, was tasked with managing claims for several prominent insurers.

Despite its extensive presence and manpower across New Zealand, it had to call in reinforcements from around the world; among them was a veteran South African loss adjuster from Cape Town, Andrew Stewart.

10 000

homes were classified as uninhabitable.

440 000 claims received by the Earthquake Commission

510 000 tonnes of silt arising from liquefaction has been removed.

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Impact on the insurance industry • The Insurance Council of New Zealand estimates that its members (insurers) paid over $NZ10 billion (R63 billion).

• This figure does not include non-members and directly written London business.

• EQC losses were an additional NZ$7 billion (R44 billion).

• The total cost of damage was estimated at around NZ$30 billion (R190 billion) – not all of which was insured.

aftershock of the original, but the EQC and insurers immediately considered this a separate event and needed assistance once again.

A whole new ballgame This time, the loss adjusters were pressured to differentiate between new damage, resultant damage and that which had not been repaired after the first quake. “If there was a crack on the wall, we had to find out if it was there before, which meant finding the original claims document and comparing photographs. If it was an existing crack, we had to be able to show whether the crack was larger and work out the difference,” Andrew explained.

This time Andrew processed more than 70 claims in 268 hours before returning to South Africa.

Return to Eden

Next level claims management It was the loss adjusters’ sole job to assess the extent of damage on each claim and determine a cost to repair. There would be no rule of average, but payments would be made on a first loss basis, although there would be some extent of leniency, as insurers, the municipality and Earthquake Commission (EQC) all wanted to see the city rebuilt.

“In fact, the words ‘we will rebuild this city, brick by brick’ became something of a motto during our time there. Where buildings were sometimes a little underinsured, the insurer or EQC would agree to make up the shortfall,” Andrew remarked.

“It was like working in a war zone,” Andrew explained of his experience in Christchurch. “We were up at dawn and ready for a briefing at 07:30 in the Ops Room. Then we’d be given several claims from hordes of files stacked in milk crates and asked to finalise at least three for the day. We’d head out, interview the owners and take pictures, estimate costs and come back to the ops room long after dark to finalise the reports.”

Andrew and the team averaged three claims a day each for about a month, resting only on Sundays. He ascribes his ability to work under these conditions to his experience in working on floods in South Africa. “I quickly learned how to get the job done in a disaster scenario. Usually, loss adjusters spend a significant amount of time on each claim, but you don’t have that luxury in these situations.

You are given a specific function to fulfil and you need to stay focused regardless of what happens.”

Andrew returned to South Africa in November 2010, having handled record numbers of claims in just weeks. His break would be short-lived though.

On 26 December 2010 at 10:30 in the morning, a small hidden fault – again previously undetected – ruptured directly underneath Christchurch. It was not technically a separate earthquake, but rather an

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Stewart returned to Christchurch on 9 March 2011, after a third major earthquake and more than 10 000 aftershocks, but this time they could work only along the outskirts of the city. “It was impossible to do as many claims each day as the claims were complicated and the damage severe. We also didn’t have access to our files and computers. It was rumoured that someone from the office had managed to sneak past police to the old ops room, to make copies of some of the files, but it didn’t help much.”

The military moved in and cordoned off the city. This time, demolitions of unsafe buildings commenced with or without the owner’s consent. A third of Christchurch was earmarked for demolition. “I shudder to consider what all the interruption of business and depopulation must have cost – and still costs – the city and economy. The three quakes were considered separate events and the damages had to be accessed and compared each time,” Stewart said.

“I think this shows South African loss adjusters that we can do what we do anywhere in the world. All you need is your computer, software and camera.

Oh, and a lot of discipline,” Stewart concluded.

He left for South Africa on 1 April 2011; for good this time.

Damage to commercial buildings • Over 1 030 commercial buildings were demolished in the CBD area.

• This is about one-third of the CBD. • Unreinforced masonry buildings were severely damaged.

• Many modern buildings were damaged and needed to be demolished. Severe shaking caused collapse of stairwells, other structural failure and loss of level.

e d i s y n The fun

of insurance

likely place for The insurance world might seem the most un humour. But wait till you read some of the statements from real claims around the world.

By Neesa Moodley-Isaacs “Going to work at 07:00 this morning I drove out of my drive straight into a bus. The bus was five minutes early.”

“I told the police that I was not injured, but on removing my hat found that I had a fractured skull.”

“The pedestrian had no idea which way to run as I ran over him.”

“To avoid hitting the bumper of the car in front I struck a pedestrian.”

“I was on my way to the doctor with rear end trouble when my universal joint gave way causing me to have an accident.”

“The guy was all over the road. I had to swerve a number of times before I hit him.”

“I thought the side window was down but it was up, as I found when I put my head through it.”

“The telephone pole was approaching. I was attempting to swerve out of its way when it struck my front end.”

“The accident happened because I had one eye on the lorry in front, one eye on the pedestrian and the other on the car behind.”

“I had been driving for 40 years when I fell asleep at the wheel and had an accident.”

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How to get a job

in the insurance industry The insurance industry offers exciting and rewarding career opportunities. Whether your passion is working with people, computers, money, figures – almost anything that you can imagine – it is all encompassed in this industry.

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I

nsurers cover anything from people, cars, building projects, aeroplanes, ships, liabilities, commercial and corporate companies, to special projects like the Gautrain, so no matter what your field of expertise is, it is possible to live your passion through insurance.

We also never thought that we would grow up and work in insurance one day, but life has ways of getting you where you need to be, and the fact that you are reading this article might just be the sign that you were waiting for to help you decide about your future.

Insurance companies are fun to work for, and they support charity projects and help to make South Africa a better country for all that live in it. If you are looking for a job where you are able to make a difference in people’s lives and give back to others, you will be able to do it at one of the many awesome insurers in our country. The only problem is: how do you get into the industry? Due to the FAIS Act, it is necessary for all financial services representatives to have a full insurance qualification on NQF Level 4 or 5, pass the Regulatory Exams and have the relevant experience. After that, you need to embark on continuous professional development every year. Some insurers will appoint

new persons (matriculants) and place them under supervision until these criteria are met. Other insurers prefer to appoint competent persons – what is referred to as ‘fit and proper’ in our industry. This might sound daunting, but you can be assured that it really is not difficult to obtain. The requirements are to ensure that quality, honest and hardworking persons enter this industry, as it is a huge responsibility to insure people and their belongings.

At the Insurance Learning Academy, we are passionate about training hard-working and honest persons with a fantastic attitude. We also assist with placing our learners into permanent positions at various insurers.

How can I obtain the necessary qualifications and certificates to enter the insurance industry?

There are many avenues that you can explore which will enable you to work in the industry: INSETA learnerships – INSETA funds hundreds of learnerships each year. You need to have a matric in order to qualify for this opportunity. You will be employed by one of South Africa’s insurers for a

year, and in that period you will receive training in order to be found competent against one of the relevant insurance qualifications. You will also work at the insurer, gaining practical experience. Most insurers employ the most successful candidates at the end of the year. If you do not gain employment through the insurer you have done your learnership with, you will have gained invaluable qualifications and experience that will allow you to apply for permanent employment with another insurer, or be placed into an internship.

INSETA internships – INSETA also funds many internships every year. You need to have a degree, diploma or have completed a learnership successfully in order to qualify for this opportunity.

Again, you will be employed with one of the insurers for a year. Throughout the 12 months you will be given the opportunity to work at the insurer, gaining the experience you require. Insurers tend to employ the most successful interns permanently at the end of the term, providing another opportunity for you to get a permanent job in the insurance industry.

Some also offer additional training during the year, which could include insurance qualifications, work readiness programmes and Regulatory Examination preparation, which will benefit you in the long run.

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• We offer recruitment services to the insurance industry, by training competent people and attempting to find them employment, or find them an internship or learnership opportunity.

Our passion is to upskill the previously disadvantaged and alleviate unemployment Undoubtedly, the reason why we are involved in training and recruitment is because we are passionate about skills development. Too many skilled learners sit at home, not able to use their skills and support themselves or their families. For this reason, the ILA does everything in its power to get competent learners employed in the industry.

Studying towards an insurance qualification It is possible to enter the industry on your own without using a learnership or internship opportunity. Some insurers are willing to appoint matriculants or graduates into permanent positions, and allow them to gain the necessary qualifications and certificates while they are employed – many insurers offer the required training themselves. You may also use an INSETAaccredited training provider and study towards the required qualifications and certificates on your own.

What are the benefits of making use of the Insurance Learning Academy?

Nouveau Consulting, trading as the Insurance Learning Academy, offers all of the training and assistance to ensure that you are in the best

position to be appointed in the insurance industry.

These are the benefits of making use of the services that we offer: • We provide training for most of the short-term insurance companies in South Africa, and a few long-term insurance companies.

• We have been running successful learnerships for the past seven years, and 98 per cent of our learners have been appointed permanently at the end of the learnership.

• We offer advanced certificates, which enables our learners to improve their knowledge and gain more qualifications and will increase their chances of success.

• We provide Regulatory Examination preparation workshops. These are included into all of the learnership and internship programmes that we run on behalf of the employers.

• The high quality of our programmes and additional training that we offer ensures that our learners are highly competent and employable.

Our sister company, License to Skill, is an authorised financial services provider and allows unemployed learners to act as representatives and sell short-term insurance to friends, families and other contacts. This ensures that they gain enough experience to start their own brokerage or to be in a better position to get permanent employment due to the practical experience gained.

In 2012, the ILA trained 16 previously disadvantaged persons free of charge; giving them a full insurance qualification, preparation to write the Regulatory Exams and paid for them to write the exams.

This year, the ILA will train 150 persons free of charge and then place them into internships or available job vacancies in the insurance industry. We aim to double that figure every year.

We want to ensure that our industry is supplied with the best talent to ensure that it continues to grow and remains a strong contributor to South Africa’s economy, thereby contributing to each citizen in our country.

Our clients We have been running learnerships, internships and other insurance-related training for the following insurance companies: • AON • Alexander Forbes • Lion of Africa • Brolink • Outsurance • Momentum Short-Term Insurance • MiWay

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• Regent • Auto & General (the Telesure Group) • Chartis • IEMAS • Hollard • Indwe • Zurich Insurance

Feedback from two of our previous learners Godnus Makamu

Being born into a previously disadvantaged family, I completed matric in 2003 and studied engineering for two years, but could not continue any further due to financial constraints. Having lost hope in engineering I developed an interest for information technology (IT), which I was set to make something out of, but that was also to be choked on my first year by financial limitations. Years passed with no particular direction or clue as to how I would realise my dreams and all hope was fading. Living in a country where unemployment is one of the biggest problems, I had long accepted the possible destination of my career, which was nowhere.

That was until late 2010, when I was blessed with the opportunity to learn insurance the following year.

It did trouble me that IT was almost in the opposite direction of where I was going, but I had to excel in what I was doing. I had to make something out of it and through hard work, commitment and dedicated facilitators I did. My only goal was to get that qualification and get a job; little did I know that behind this was a whole new world of endless possibilities. It didn’t take long before I earned my qualification in short-term insurance and started working in a call centre. In eight months, I had gone from unemployed and unskilled to employed, skilled and qualified and employed.

However, things had changed; my goals and hopes had become even greater as my view of the insurance industry was very different and much

more informed. So much so that my job was only the beginning and I was determined to go as high as I possibly could. This is because throughout the year in the learnership, I began to believe in opportunities and dreams that I thought had long since faded away. Ten months into the job, I was appointed as a developer (computer programmer) in the IT department in a well-known insurance company; offering knowledge and experience in the industry. This couldn’t have come at a better time. I have achieved a dream that once seemed to have died and the future has never looked brighter.

Now six months down the line, my studies have resumed and, no, I will not have any more financial limitations on my studies. I will soon move into my own home and who knows what’s next.

With insurance becoming increasingly popular, the industry will continue to grow, making it one of the industries that has a lot to offer, but remains largely unexplored by the South African job-seeking youth.

Not only does learning insurance and working hard open doors to IT, but a whole range of other opportunities, depending on your dreams and goals within the industry. Once in the industry, possibilities are endless. Would I advise anyone to study insurance? Not only would I advise, but urge them to consider it and make the most out of it.

As for me, I will climb to the top of the ladder.

Unfortunately, my mom became ill and due to a lack of finances I had to end my studies and take over her work as a cleaner and look after my siblings, as they were still in school. While working, one of my aunts told me about the learnership programme that was about to start and I decided to apply. Luckily, I was given the opportunity to learn in the insurance industry for a year. When that year was over, I had completed all the courses and received my qualification certificate.

Due to my hard work and passion, I was appointed to the roll of client care adviser, and after six months was offered the opportunity to go on a trip overseas.

I could not believe that everyone was so pleased with me, but I was proud that my hard work was paying off. It was actually a dream come true for me and my family considering where I came from.

I have recently bought my mom a new house and I will be buying myself a new car in the next three months. I am very proud of myself today. As a young girl, I’ve achieved a lot, I’ve been blessed and I can’t wait to see where my career takes me.

Onicca Moeng

I was raised by my mom, a single parent, who worked as a cleaner to put food on the table for my siblings and myself, and put us through school.

In 2004, I matriculated and the following year I enrolled in a business management course at Rosebank College.

Contact details Contact persons: Dessri Breedt: 076 428 7734, Lethabo Neluheni: 071 489 2787 Office number: 012 665 3465 / 086 10 45 272 Fax number: 086 230 3208 e-mail: info@learninsurance.co.za CVs to: learnerships@learninsurance.co.za internships@learninsurance.co.za

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A

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.

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Your

best insurance is an FIA

adviser

The direct insurers’ decade-long “cut out the middle man” advertising campaigns resulted in a sea of negativity around the financial intermediary. There is a perception among the consuming public that brokers and advisers are bad news.

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his could not be further from the truth. Insurance brokers and financial intermediaries provide an invaluable service to thousands of South African consumers. A career as a financial intermediary is an opportunity to promote the value of good financial advice through daily faceto-face interactions with your clients.

“There are opportunities for dedicated professional intermediaries in all sectors of the financial services industry,” says Justus van Pletzen, CEO of the Financial Intermediaries Association of Southern Africa (FIA). “Our members specialise in diverse fields including employee benefits, healthcare, life insurance and short-term insurance.”

If you decide to become an intermediary, you

360 degree protection To appreciate the value of intermediated short-term insurance, you need only consider what happens when the broker is bypassed. John (not his real name), age 29, was driving his mother’s car when a delivery truck skipped a red light and smashed into him, leaving the vehicle stranded with approximately R30 000 in damages.

will benefit from joining a member representative body such as the FIA. The FIA represents, protects, promotes and furthers the common interests of its members and is a recognised professional organisation with a code of conduct governing its behaviour. “We exist to serve our members and promote our image through industry representation and the provision of services including the development of the intermediary market,” says Van Pletzen.

Intermediaries work closely with their clients, so the profession suits individuals with good people skills. As an intermediary, you will assist your clients to holistically plan for their future financial needs as well as to protect both their loved ones and personal possessions from unexpected events. The intermediary plays an important role in representing customer concerns to the product provider. The following story illustrates how an FIA broker secures a fair deal for a short-term insurance client.

Calm after the storm Joe (not his real name) suffered storm damage to his farm house, outbuildings, electric gate and perimeter fence. Upon receipt of Joe’s claim, the insurer sent out an assessor, who relied on a farm worker to point out the extent of the damage.

Following his investigation, he authorised repairs to the farm house and electric gate only.

The insurer – on the assessor’s recommendation – refused to repair the outbuildings on the basis that lack of maintenance and gradual deterioration of the structures were evident. It also refused to pay for repairs to the perimeter fence.

At this point the FIA broker intervened. He visited the farm and took photographs of the roof of the outbuilding, the fence and the devastation evident in the surrounding areas. When he contacted the assessor telephonically, he was referred to the contractor, who advised him that the rafters and beams were rotting.

When asked by the broker whether Joe could reasonably be expected to pull out the ceiling to inspect the underlying supports, the contractor replied that such maintenance should be done when signs of leakage occur. No such signs were evident.

The broker engaged the assessor again only to be admonished for always asking assessors for favours.

The broker responded that he was merely asking that the principle of proximate cause be applied in settling the claim.

The assessor remained unmoved and the chief assessor was called in. Her position was that the insured would not be compensated for the damage to the outbuilding, whether or not proximate cause was brought into play. The broker then drew the national claims manager into the matter with the request that the principle of proximate cause was applied to ensure fair treatment of his client.

The claim was revisited, the fence repaired and an agreement reached with the insured regarding settlement of the damage to the outbuilding.

Being an insurance broker is about representing your clients’ best interests at all times. As such, a career as a financial intermediary should be viewed as one through which you provide an essential service to your community. It is one of a few careers where your personal integrity and hard work really pay off.

Making a career out of good financial advice One of the toughest decisions facing South Africa’s school leavers is what career to embark upon. Those who achieve top marks in matric end up studying accountancy, engineering, law and medicine; where, if successful, they are on the fast track to post-graduation employment.

The outlook for thousands of learners who enter university to sit three and four-year general degree programmes is less certain. These learners have bought some extra time to decide what career they are best suited to, but the decision still awaits them.

The FIA believes that these graduates can find a home in the financial services industry. “There are massive opportunities for graduates with entrepreneurial flair to join our member companies as financial intermediaries,” says Van Pletzen.

Financial intermediaries play an important role in the domestic economy by assisting the consuming public to put financial plans and insurance covers in place. From a financial planning perspective, an intermediary’s advice is often only appreciated years down the line. Insurance intermediaries and their clients, meanwhile, experience the value of good advice within days of signing a contract for insurance.

The client (John’s father) telephoned his direct insurer who had the car towed to a panel beater’s storage facility. He soon received the following message: “Your policy covers only the designated driver and spouse – you will have to pay the tow costs and storage – totalling some R8 500 – to get your unrepaired vehicle back.”

John’s father turned to a broker friend for help. A review of the repudiating insurer’s policy schedule confirmed the designated driver and spouse clause.

What now? Should the client borrow money to get his car back? If yes, how does he move the vehicle, and where does he store it?

The broker called in a few favours and the car was moved. Since there were witnesses to the accident and the truck driver admitted guilt, he set about putting pressure on the truck’s insurer to compensate for the loss.

Eight months later John’s dad is still dodging the curve balls thrown at him by the guilty party’s insurer. He is stuck with a range of fees including having to settle the outstanding finance on a damaged vehicle that he cannot use.

The moral of the story is that consumers who enter into contracts of insurance without the good financial advice offered by a professional intermediary risk suffering untold financial hardship.

While short-term intermediaries are on hand to represent their clients when claims become difficult, life insurance brokers also support the insured’s family in the event a death, critical illness or disability event takes place.

A desire to serve both your clients and the broader community is essential for anyone considering a role as an intermediary. Career opportunities in the life and short-term insurance industries extend way beyond the existing prospects offered in the world of intermediated insurance distribution.

There are numerous opportunities for university graduates to join FIA member companies, regardless of their qualifications.

Insurers need skilled individuals to deal with the myriad challenges of matching premium to risk, assessing claims and implementing regulatory changes to name a few. Thus professional careers in insurance include anything from specialists in the transport industry to mining specialists; from actuaries to medical doctors; and from attorneys to accountants.

“Many students decide on a career only once their studies are behind them,” says Van Pletzen. “What they should be doing is considering their options while studying. Students who are interested in becoming professional financial intermediaries can contact the FIA to find out more about opportunities in this exciting field.”

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A career in financial planning t is a profession, just like medicine, law, accounting or engineering. As a career, it enables those people with entrepreneurial skills to eventually set up their own businesses. We advise school leavers to achieve their suitable bachelor’s degree, gain their experience at an FPI-approved mentorship centre and continue with the pathway to CERTIFIED FINANCIAL PLANNER® / CFP® professional certification.

The CFP® professional designation is the pinnacle in the industry and should be the ultimate goal in terms of job progress and promotion.

Mentorship programme The FPI recently launched a mentorship programme in the first half of 2012, which provides a mechanism for CFP professionals to mentor aspiring financial planners. The goal is to assist them in meeting the experience requirement of the institute to be certified as a CFP professional member of the FPI. The aim of the FPI mentorship programme is to enable candidate members to gain the relevant and sufficient experience in a formal services-under-supervision (SuS) programme.

It is designed to be a proactive development process for helping candidate financial planners develop and enhance their financial planning skills over a minimum period of one year.

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About the FPI

The financial services industry

The Financial Planning Institute of Southern Africa (FPI), the SAQA approved professional body financial planners, which serves the public by ensuring that people who carry the CFP designation are qualified, experienced and professional. The FPI is recognised internationally and is a founding and a current affiliate member of the international Financial Planning Standards Board Ltd (FPSB) based in the USA, along with 23 other affiliate member countries who offer CFP certification, the highest recognised professional designation worldwide for a financial planning professional.

The financial planning industry can be divided into three main categories, namely representatives, advisors and planners. This is also the typical pathway for people in the industry to develop and promote themselves. This pathway can be illustrated as follows:

How to become a professional financial planner

CFP professional (4300)

STEP 1

Obtain a relevant qualification from one of the FPI accredited education institutions.

STEP 2

ADVISORS (40 000)

Obtain the necessary financial planning experience

STEP 3

Complete the professional board examination

STEP 4

Apply for an FPI professional designation

REPRESENTATIVES (100 000)

*Approximated 2012 figures

I

Financial planning is the process of developing strategies to assist clients in effectively managing their financial affairs.

The following table elaborates on the different types of courses and jobs available in each category, but it is a generalisation and the information could also be applicable to other categories depending on individual circumstances.

Type of job

Minimum qualification Ongoing education

Representative

Advisor

Planner

The role of this job is to help sell investment products to the institution’s clients. This job consists of financial planning advice and the sale of financial products. Responsibilities will vary depending on which company you work for.

A financial advisor addresses the financial needs of clients by proposing specific products to address those needs. Financial advisors focus on single needs analysis and do not necessarily give holistic and comprehensive financial advice.

A financial planner is a practising professional who identifies client’s needs through a comprehensive needs-analysis process, with an holistic view, develop a plan that will assist the client to achieve his/her life goals. The financial planner will then implement the plan as the life events occur during the life of a client.

Progress is monitored and reviewed on a regular basis to ensure that any changes to goals and objectives are addressed and that any external changes that might affect the plan are considered. Financial planners often specialise in one or more component, such as asset management, risk management or estate planning.

An NQF Level 5 or 6 qualification in financial planning or wealth management.

An NQF Level 7 qualification as listed in the FPI list of approved qualifications.

NQF Level 8 qualification in financial planning.

Financial representatives need to ensure that they are abreast of everchanging legislation and regulations.

Financial advisors need to ensure that they are abreast of changing legislation and regulations. Changes to the different financial products result in ongoing learning.

Financial planners need to ensure that they are abreast of changing legislation and regulations. Changes to the external environment that might affect their clients’ financial plans are major aspects in continuous professional development.

An NQF Level 7 qualification may be required to get promoted to adviser.

An NQF Level 8 qualification and a professional competency exam are required to become a financial planner.

Changes to the different traditional and nontraditional financial products result in ongoing learning.

An advanced postgraduate diploma, masters or doctorate degree are options for further studies. A qualification specialising in one of the financial planning components is also an option.

Other attributes

Approved qualifications and providers

Articulation options

Designations offered by FPI

Self-driven Excellent customer service and sales skills Goal-orientated Work under pressure

Self-driven Excellent customer service Good listener Analytical skills Communication skills Goal-orientated Work under pressure

Self-driven Excellent people skills Good listener Analytical skills Communication skills Ability to synthesise Goal-orientated Work under pressure

National Certificate: Wealth Management (Milpark Business School, NQF Level 5) Higher Certificate: Wealth Management (PSG Konsult Academy, NQF Level 5) National Certificate: Financial planning (Milpark Business School, NQF Level 6) Advanced Certificate: Financial Planning (PSG Konsult Academy, NQF Level 6).

BIuris: Financial Planning Law (University of the Free State, NQF Level 7[new]) BCom Financial Planning (Nelson Mandela Metropolitan University, NQF Level 7[new]) BCom Finance (University of Johannesburg, NQF 7[new]) BCom Management Sciences (University of Stellenbosch, NQF Level 7[new]).

Postgraduate Diploma in Financial planning (Milpark Business School, NQF Level 8[new]) Postgraduate Diploma in Financial Planning (University of Stellenbosch, NQF Level 8[new]) Postgraduate Diploma in Financial Planning (University of the Free State , NQF Level 8[new]) Postgraduate Diploma in Financial Planning (Nelson Mandela Metropolitan University, NQF Level 8 [new]) BCom Honours Financial Planning (University of Johannesburg, NQF Level 8[new])

A learner with a NQF Level 5 qualification can gain entry into NQF Level 6 at any registered provider A learner with a NQF Level 6 qualification may gain entry into NQF Level 7 at any registered provider A learner who does not meet the minimum requirement can apply for recognition of prior learning at a registered provider.

A learner with a NQF Level 7 qualification may gain entry into NQF Level 8 at any registered provider A learner who does not meet the minimum requirement can apply for recognition of prior learning at a registered provider.

A learner with a NQF Level 8 qualification can gain entry into NQF Level 9 at any registered provider A learner who does not meet the minimum requirement can apply for recognition of prior learning at a registered provider.

FINANCIAL SERVICES ADVISER™ or FSA™professional

CERTIFIED FINANCIAL PLANNER® or CFP® professional

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Short-term insurance long-term

can be a

career

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T

he possible pathways of growth in the insurance industry are exponential, especially after a year or two in a certain field.

Career advancement and growth are dependant only on the interests and ambitions of the individual.

In an ideal world, you would want to start in the claims environment of insurance as this is where you really get to see the policy in action. Advancing a career with fundamental grounding and secured growth would be much easier as a member of a professional body such as the IISA. Members have the backing of the professional body to ensure that their qualifications and professional requirements not only meet, but exceed the regulatory requirements. More importantly, the professional body ensures that their chosen profession is recognised with integrity and sets them apart.

In 2009, the IISA set out to develop a diagrammatic representation of the job functions and possible careers in the short-term insurance industry. The pictorial outcome of our research has been published far and wide and used in many instances for different purposes.

The IISA offer three professional membership categories:

1 2

One could start in any of these areas with a basic knowledge and background of the industry.

It is necessary to consider that there are regulatory requirements for certain positions which would require a person to complete a qualification and Regulatory Exams within a maximum of six years from when the person is appointed in such a position.

Programme in Risk Management 108 credits @NQF Level 7

IISA Associate IISA introductory Programme in Advanced Insurance Practice 60 Credits @ NQF Level 7

PLUS

IISA Programme in Advance Insurance Practice

It has largely been agreed that these functions not only exist in short-term insurance, but in long-term, medical and other areas of insurance as well.

The key main areas of insurance are: • Sales • Administration • Risk management • Underwriting • Claims

IISA Fellow

60 credits @ NQF Level 7

3

IISA Licenciate Higher Certificate in Short Term Insurance 120 Credits @ NQF Level 5

OR

National Certificate in Short Term Insurance 120 Credits @ NQF level 5

It is important to note that professional members must not only show qualification competence, but also be operational in the short-term insurance industry in either South Africa or SADC region.

As of June 2012, all professional members are required to complete a 30-hour CPD programme each year, to retain their designations and satisfy the regulatory requirements.

For any additional information, please consult our website www.iisa.co.za or contact us on 086 100 4472.

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g n i n i a Tr s ’ w o r r tomo

s r e r insu

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he goal of the Insurance Sector Education and Training Authority (INSETA) is 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.

INSETA, established in 2000, embarks on skills development programmes, learnerships and skills programmes. To ensure that the sector is well transformed and skilled, INSETA works together with government, organised labour, business, and civilians. We are committed to professionalising the sector by supporting it in its educational and skills development requirements.

INSETA employer companies

10

sub sectors

EMPLOYER COMPANIES Levy paying

Non-levy paying

24

104

37

109

204

2 060

Life insurance

217

1 427

Pension funding

30

352

Healthcare benefits administration

55

142

Short-term insurance

425

2 269

Funeral insurance

23

118

21

49

Unit trusts (or collective investments) Risk management

Insurance and pension funding, except compulsory social security

Reinsurance

Activities auxiliary to insurance and pension funding (including 491 brokers/intermediaries

4 045

Totals

10 675*

1 527

• A levy paying employer is a company that pays skills development levies due to its annual payroll being R500 000 or more.

• A non-levy paying employer is a company that does not pay skills development levies due to its annual payroll being less than R500 000.

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

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What the insurance industry has to offer • The insurance sector provides a wide range of career opportunities for managerial, professional, clerical and administrative and sales staff.

• Contributes more than one-fifth of the GDP. • The sector is in a process of professionalisation, and higher skills levels are required in all categories.

• The sector tends to employ people with relatively high qualifications.

• The sector competes with the rest of the economy for high-level financial skills.

• 2 500 to 3 000 new employees must be trained in the sector on a year-on-year basis.

The insurance industry INSETA operates within the insurance and related services sector, which is a highly regulated industry.

It forms part of the financial services sector and is a risk-based industry that clusters around short-term insurance, long-term insurance, health insurance, retirement investments and collective investments.

These risk areas, although each is different, all overlap and form a coherent industry.

The table below is a representation of the sector and its sub-sectors.

Long term

Short term

Risk

Personal lines

Retirement

Commercial lines

Collective investment schemes

Corporate

Employee benefits Health benefits Reinsurance is a means of risk management and occurs when multiple insurance companies share the risk by purchasing insurance policies from other insurers to limit their exposure in the case of disaster. This practice occurs in both long and short-term insurance.

Employment in the sector The sector is made up of large, medium and small enterprises with small enterprises being by far the largest grouping, however, employing just under 10 per cent of the approximately 112 000 employees in the sector. Representing less than one per cent of enterprises within the sector, the large companies account for approximately 84 per cent of employment. Medium-size enterprises account for remaining six per cent.

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It is worth noting that the employment distribution per province is skewed with 53 per cent working in Gauteng, while just 21 and 11 per cent work in the Western and Eastern Cape respectively. That is why INSETA is working in partnership with further education and training (FET) colleges and associations, such as the burial societies and brokers, to reach South Africans in every province.

INSETA represents a range of organisations from highly sophisticated globally competitive firms to emerging businesses, such as small insurance brokers, and those targeting the needs of the poor, such as burial societies.

This makes strategic planning and ensuring that the scarce and critical skills needs of the whole sector are addressed for complexity in for INSETA, as well as addressing national skills development strategic imperatives of transformation.

The performance environment As part of the sophisticated financial and business services sector, the insurance industry is important to our economy. The industry accounts for 71 per cent of Africa’s total insurance premiums and has the third-highest market penetration in the world at 15.3 per cent. South Africa continues to be ranked in the world’s top 20 markets for both life and nonlife premiums.

Also the South African insurance industry has shown a remarkable resilience to the economic turmoil that negatively impacted most other industries across the world. According to the 2012 budget review, “the finance, insurance, real estate and business services sector grew by 3.5 per cent in the first nine months of 2011, compared with two per cent during 2010”.

One of the factors of success is that the industry is well regulated. The sector is governed by a range of legislation particularly in recent times with the advent of Financial Advisory and Intermediary Services (FAIS) and Financial Intelligence Centre (FICA) Acts. New waves of regulations including Solvency Assessment and Management (SAM) and Treating Customers Fairly (TCF) as well as the outsourcing agreement regulations are impacting the sector currently. Whereas the regulations provide stability, they also pose a number of challenges and opportunities to the sector.

Demand for services The INSETA Sector Skills Plan (SSP) indicates that skills in demand are within the clerk, administrator, sales worker, manager and professional occupational categories, notably at an intermediate and high level. The scarce and critical skills in the insurance and related services sector represented by the SSP are as follows:

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Benefits of a learnership University/college qualification

Learnership

• Theoretical (classroom) learning takes place

• Theoretical learning (classroom) takes place

• No workplace exposure

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

• Learner would have to pay the costs of tuition • No stipend is paid to learner while studying • The learner obtains a qualification

• Learner tuition costs are paid for as part of the programme

• • No opportunity for graduate to be exposed to employers’ • workplaces unlike a learnership • • Sometimes the qualifications offered by tertiary institutions do not prepare the learner for the workplace •

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The learner receives a stipend payment every month The learner obtains a qualification.

Top learners have a good chance of finding employment in the workplace where they completed their learnership The qualification done by the learners is selected by the employer based on demand and as a result the learner is more prepared to enter the workplace

Cluster 1 – Advice and sales (insurance sales representatives and financial investment advisers).

Cluster 2 – Information systems (developer programmer and business and systems analyst).

Cluster 3 – Claims assessing

(claims investigators, loss adjustors and claims assessors).

Cluster 4 – Specialist areas (insurance underwriters and actuaries).

Other sub-sectors such as the burial and funeral insurance sub-sector, have expressed a need for support of the small organisations to be registered and build capacity as co-operatives within a context of greater regulatory controls.

The insurance and related services sector is well organised through professional bodies and associations. INSETA has built good relations and partnerships with the various organisations to understand and contribute to the sub-sector needs.

It is through these partnerships that INSETA is able to remain relevant and meet the demands of the sector. Not only are we committed to meeting the skills needs of the sector, but to also remaining true to the national skills strategic imperatives of transformation.

This means the transformation of the existing workforce by race and gender, through building the supply of black skills to the sector as well as supporting the progression and professionalism of existing employees.

This is partly through partnerships with FETs to increase the supply of relevant qualified and skilled youth, and by supporting the professional, vocational, technical and academic learning (PIVOTAL) programmes in partnership with the relevant industry organisations to offer sector-related and occupation-specific qualifications.

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

Financial professionals As the insurance sector forms part of the broader financial services sector, there are many opportunities for financial professionals in the insurance sector and their skills are in demand in most sectors.

• • • • • • • • •

Accountants and chartered accountants Business analysts and consultants Financial economists and analysts Internal auditors Forensic auditors Management accountants Statisticians Financial market dealers Economists.

How to get into insurance • At subject level, maths has become an important choice for those who are considering employment in the insurance sector. Most of the highlevel financial skills require candidates with a sound maths background.

There are two options to gain entry into the insurance sector through learning programmes:

1 2

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).

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 4 or 5.

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.

• Various new sector specific qualifications have been registered. BCom degrees now include specialisations specifically for the insurance industry.

How do I enrol for a learnership?

• Employs a large number of graduates from tertiary institutions.

What are the enrolment requirements?

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

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.

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

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 learnerships categories that have been developed and registered in the insurance sector. The two most popular learnerships are: • Financial services administrator – NQF Level 3, 120 points

• Insurance administrator – NQF Level 3, 120 points

What is an internship?

An internship is a learning programme which provides on-the-job training usually for graduates who want to develop hands-on experience in a certain occupational field.

An internship is a great way to test drive a particular career by getting exposure to t he field

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in the workplace environment. The employer also benefits as they can see if a graduate is suitable for the company. The intern will receive mostly practical product knowledge training. The intern is paid a stipend by INSETA if on an INSETA-registered internship.

Work-based experience programmes Some qualifications (mostly FET colleges and universities of technology) require the learner to have practical workplace experience before the qualification requirements are met. A work-based experience (WBE) programme is conducted in order to assist the learner to gain necessary workplace exposure in order to fulfill the requirements of his qualifications.

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

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

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

The job came out on top out of 200 careers measured against each other in terms of stress, working environment, physical demands, income and hiring outlook parameters. That said, it is a career that many people, let alone grade ones, don’t know much about.

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 small 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 the INSETA and the South African Actuaries Development Programme (SAADP). The deal will see high-potential 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 has been inspired by an urgent and critical lack of actuaries in the economy which could potentially undermine the insurance sector.

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“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, and in many industries, everything that affects the insurance industry also impacts the wider economy. The shortage of actuaries in insurance impacts the sector’s ability to function optimally, which inevitably affects the industries which depend on it,” commented Ramaphosa.

Ramaphosa believes 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.

According to INSETA COO, Sharon Snell, 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. Which is where the SAADP comes in. It offers the exact support these students need. The organisation identifies needs, monitors and provides assistance, ensures support to, and the success of the learner,” says Snell.

The SAADP intervenes in three different areas in order to achieve their objective, 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 selected students cover four years of study.

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, according to Ramaphosa.

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 a real-world working environment, as well as workshops aimed at developing professional skills for SAADP staff.

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Setting the standard

The South African Insurance Association (SAIA) exists to ensure a sustainable and dynamic shortterm insurance industry for the benefit of all South Africans.

T

he association, chaired by Ronnie Napier, represents most of the short-term insurance companies in South Africa and is authorised to negotiate on behalf of its members. The association is currently made up of 58 members and managed by Barry Scott, in the capacity of chief executive.

Members of the SAIA abide by the Code of Conduct and participate in the Office of the Ombudsman for Short-term Insurance. The SAIA also participates, and is represented, in various organisations within and outside the insurance industry.

The core functions of the SAIA include the representation of its members’ interests to the public, the government and media at all levels in a proactive manner, and the provision of a forum for discussion of common interests in the industry.

It facilitates the flow of information among its members and sets appropriate technical standards for the industry.

Getting involved The SAIA is involved in several initiatives, both in the general financial industry and specific to short-term

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insurance. These initiatives were chosen by the industry as consumer and community-orientated projects that serve to illustrate concerns about a specific area.

Obviously, the industry is very concerned about insurance crime and fraud. In a bid to stem these issues, the association was instrumental in the establishing the South African Insurance Crime Bureau (SAICB) at the end of 2008. The SAICB remains an independent organisation with its own members and close links to the SAIA. We support the South African Police Services in combating crime, through participation in various Business Against Crime South Africa (BACSA) initiatives. The SAIA donates a significant amount of money to Business Against Crime on an annual basis to further specific and relevant initiatives undertaken by the organisation.

The association has been running a robust consumer education initiative with a national footprint that it has implemented annually for the past 19 years. We support projects that improve financial literacy among low-income consumers, and help them become better decision-makers when it comes to financial matters.

The SAIA consider consumer education as a very important and strategic initiative and the board has

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approved a new consumer education strategy. This strategy affects all association members, irrespective of whether the industry is governed by the Financial Sector Charter or the generic BBBEE Codes.

The association has continued to make remarkable inroads within the sustainability arena under Debbie Donaldson, SAIA general manager: strategy and planning. The association has partnered with many external organisations and agencies to ensure sustainability within the short-term insurance industry.

Some of the notable initiatives within this area include climate risk, the green geyser replacement project (GGRP), human capital development and the financier and insurer vehicle system (FIVS).

Looking to the future In 2012, the association saw a spiral in the number of its employees as it embarked on a new journey to benefit the industry in the long term. The goal is to plug the dire skills gap hounding the industry and the SAIA board decided to embark on an internship programme. It will see the association taking in graduates and training them in industry specific areas over a period of a year.

The 2012 intake was the first and the interns graduate during the first half of this year, after which they will carry their experience into the future. 2012 saw the SAIA taking in six graduate interns and this number is set to increase to eight in the year 2013.

INMAG caught up with the class of 2012 to find out more about them, and chat about their experiences.

Pule Letebele Participating in the project management graduate programme has been a great opportunity for me.

I have experienced real corporate life regarding punctuality, adapting to the professional culture and, most importantly, communicating in the work environment.

Through the opportunity that SAIA offered me, I have gained practical experience of project management methodology and the dynamics around the subject have been revealed. In the world today, it is a big challenge for a graduate to gain entry into the corporate world, where on-the-job experience is vital. The gap between the working class and the non-working class is increasing, and the graduate programme is a way to help correct that trend.

Mahlokileng Esther Nchabeleng When I arrived at the SAIA graduate development programme, I was keen to broaden my horizon in the financial services sector, to close the gap between university and work life and to learn more about the short-term insurance industry with a hope to further my career in risk management, strategy and planning.

Through the SAIA, I have gained

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a firm background on risk management and the importance of strategic planning around the environmental, governance and social (ESG) risk and disaster management, conducting thorough research for project support.

I am a graduate with a bachelor’s degree in economics from the University of Pretoria, majoring in economics, statistics and strategic management.

Additionally, I have attended a banking training programme covering introduction to banking, regulating institutions, as well as life skills.

My hobbies include wildlife photography, anthropology and reading. I am currently a graduate in the strategy and planning division at the SAIA and studying towards a postgraduate degree in risk management and risk financing.

Mantwa Mosifane The South African Insurance Association (SAIA) gave me an opportunity to learn in the insurance industry. I was awarded the chance to grow both personally and professionally in the hope of becoming a huge success in my career. Having a focus on the motoring industry has exposed me to various interesting aspects about vehicles and what factors impact the industry as a whole. This has been an enlightening experience and has unleashed my curiosity about cars.

I hope to gather thorough knowledge of the short-term insurance industry as well as appropriate experience to become a valuable asset to the industry in the long run. My time at SAIA thus far has been a steep but interesting learning curve. I have learned to take pride in my work and show a level of excellence the industry would find exemplary.

It’s been a pleasant experience and I anticipate a remarkable future.

I grew up in Meadowlands, Soweto, and completed my BCom in insurance risk and management at the University of Witwatersrand in 2010. I believe life is what you make of it. With the right attitude and passion to learn, each person has the ability to reach their dream.

Thembinkosi Rachel Mokoena I’m originally from a small town in Mpumalanga. I attended my primary school at Robert Carruthers School and high school at Hoërskool Generaal Hertzog. It was a major change switching from an English to an Afrikaans school, but it really helped polish my language skills.

After matriculating in 2008, I moved north to pursue my studies at the University of Pretoria. I studied a BCom in financial management sciences and

majored in financial accounting, management accounting and financial management. It was the most difficult time of my life having to adjust to the city life and so much extra work.

I was in a relationship with my books and no matter how much I’d try to run away from them, I knew I’d have to come back to them every night. I had many memorable moments during my stay in a Tuks residence and I took part in so many activities such as Serrie – a group dance competition – and singing competitions.

The three years flew by and it really hit me when I realised I was about to enter the big wide world. I was so fortunate to have joined the SAIA graduate programme. I’m in the finance and accounts department and work with the most wonderful team.

During the start of my graduate programme, I hoped to excel in my responsibilities and duties. I want to climb the ladder of success as high as I can, learning from my superiors to be able to be in their position someday. I learned that success comes with hard work and perseverance.

Prisca Masuku I was born and raised in Diepkloof, Soweto, where I completed both my primary and high school education. I attended and completed my LLB (law) degree with the University of South Africa (UNISA), specialising in competition law and tax law.

During my time at UNISA, I gained a variety of invaluable skills like being able to work independently, take direction and paying attention to detail.

I have a strong passion for learning and creative problem solving. The sum of my past experiences has made me the self-disciplined, virtuous and inquisitive person I am today.

Through the South African Insurance Association (SAIA), I have gained an understanding of the short-term insurance industry. Additionally, I learned about the regulation of financial services as a whole both locally and globally, which is far more than I had initially anticipated when I started the graduate programme.

Through its graduate training programme, the SAIA has given me my first practical exposure to the financial service industry. It has afforded me the opportunity to interact with experts in the insurance industry both locally and abroad.

The SAIA has opened my eyes to an industry I had little previous knowledge about, but now find fascinating and exciting.

Nosiphiwo Mandoyi I work on the sustainability portfolio, which embraces the industry’s response to the environmental, social and governance risks facing the insurance industry. I have learned how best environmental practices and strategic actions influence our risk management profile across the short-term insurance industry and society as a whole.

Through this opportunity I learned professional conduct, which will be valuable throughout my career. I intend to succeed in this programme and gain meaningful career development from this experience.

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A TO Z INTRO In this section, we provide you with an introduction to 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.

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Emerald Risk Transfer Underwriters of corporate property and affiliated engineering business throughout Africa.

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Unique solutions

that shine

Who are we?

Our people

After 14 years in the business, despite a significant change of shareholding and a minor change in name, Emerald Risk Transfer (Emerald) is still fundamentally dealing with the same product in the same manner. Emerald underwrites corporate property and affiliated engineering business throughout the African continent on behalf of Santam.

With 44 people in our office in Fourways, we believe we offer the best technical support structure and the most innovative opportunities to any intermediary looking for corporate property and affiliated engineering insurance solutions within our continent.

Originally established in 1999 in a small office in Sandton, Emerald currently offers solutions to over 600 clients on the African continent, all through intermediaries, including many of South Africa’s top 100 companies.

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Our senior team has considerable experience, and we would like to think that between us we have seen most risks in South Africa in one form or another. Certainly the rest of continental Africa presents other challenges, in terms of regulations, access to information and exchange controls. We are motivated to become the insurer and reinsurer of choice in other countries in Africa.

Our security With assets in excess of R17 billion, 91 years in the industry, a thriving intermediary network and more than 650 000 policyholders, Santam is one of South Africa’s leading short-term insurers. It also holds business interests in Zimbabwe, Malawi, Uganda, Tanzania and Zambia, and strategic investments in various companies within the insurance industry, including the subsidiary Santam Namibia Ltd. Emerald writes business into the insurance licence of Santam Limited, the largest non-life insurer in South Africa. Santam has a Standard & Poor’s rating of A- with a stable outlook.

Operational ethos Every Emerald employee must be motivated, enthusiastic, professional and effective. They must understand their goals, be empowered and be encouraged to utilise their initiative and intellect.

Underwriting ethos Correct understanding and measurement of risk, appropriate reinsurance placement and accounting and effective claims management are all key to our underwriting approach.

Our purpose To create sustainable corporate property and engineering insurance solutions throughout Africa for our preferred business partners.

Our mission statement To be the insurer of choice in our chosen areas of business by offering innovative solutions and quality capacity, while maximising returns to all stakeholders, and providing an enriching and rewarding environment for all employees.

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Our people & planet We are continuously looking at ways to contribute to the dynamic socioeconomic transformation of South Africa by focusing on youth development and education as well as supporting initiatives that can benefit from not only financial aid, but from donations, time and attention.

We endeavour to create environmental awareness, education and conservation; with a view to preserve our country’s rich natural heritage.

By supporting a number of different charitable organisations, dependent on the charity involved and their specific needs, we aim to make a difference by giving a combination of time and effort, physical items or financial aid. We also try to have good old-fashioned fun while we are at it.

For the third consecutive year, we celebrated the festive season somewhat differently, not by giving gifts to our clients, but instead by reflecting over the past year and the difference we have made to the lives of those less fortunate than ourselves.

“Let us not be satisfied with just giving money. Money is not enough, money can be got, but they need your hearts to love them. So, spread your love everywhere you go.” – Mother Teresa

Annual Discovery Walk the Talk

Corporate property and affiliated engineering business defined • Multinational companies • Petrochemical risk • Mining risk

Recycling is just one of the many ways in which our committee is striving “to inspire change in the actions and ways of our family, friends and colleagues to constantly strive for a greener, cleaner and healthier planet”.

And their mission is to constantly “seek to assist and enable communities and individuals to uplift themselves and others”.

• Municipalities with power generation plants • Metro councils • Risk with a combined MD/BI TSI above R1 billion or MPL above R250 million in South Africa and TSI above $100 million (R907 million) or MPL above $20 million in continental Africa.

We have tried to give a snapshot of the niche within which we operate. Ours is not the kind of model where we cold call intermediaries to see who controls what, but rather to facilitate intermediaries’ clients that fall within our product definition. If you feel you could add value to Emerald now or in the future, contact us via our website to set up an introductory meeting.

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Aids Bannerthon

Do you have every facet of your business covereD? Emerald is currently the largest Corporate Property and affiliated Engineering Underwriter in South Africa, and underwrites business throughout the African Continent.

The solution orientated approach of the Emerald team to create sustainable, quality products is part of their culture.

This flexible approach, coupled with the support of their excellent Reinsurer panel, allows Emerald to be truly innovative.

For more information on how Emerald can assist your corporate clients: t +27 11 658 8200 W www.emeraldsa.co.za e info@emeraldsa.co.za FSP FSB No: 13893

Find us on Facebook www.facebook.com/ emeraldrisktransfer Or follow us on Twitter www.twitter.com/ emeraldrisk

The aim of the company is not to be the cheapest by cutting corners, but rather to be the best by offering expertise and skill.

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E

Earn while you learn Awesome support for exceptional people!

Award-winning Etana Insurance is S o u t h A f r i c a ’s l a r g e s t i n s u r e r d e d i c a t e d to business protection through brokers.

FOR

FREE

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Career variety s itie possibil

AGRICULTURE

CONSTRUCTION AND ENGINEERING

FILM GUARANTEES

Forget what you think you know

about working in insurance!

Etana is different and unique in ways that are important to building a career and a life with high altitude. One of our key goals is helping our people to be their best.

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HOSPITALITY AND TOURISM

Free tinuous and concations qualifi h our throug Etana ed c a creditdemy Aca

COMMERCIAL AND INDUSTRIAL

MARINE AND TRUCKING

of using outside specialists • Instead which is the industry norm, we have our own Centres of Excellence focused on specific categories of business and industry. Result: a great veriety of career opportunities.

• Etana is the largest insurer in South Fuelled by passion for innovation,

With 19 “Local is Lekker” branches situated across the country, we’re always easily accessible to the brokers we do business with. Find the Etana branch closest to you…

Tel: 011 351 2500 Fax: 011 351 8060/3

www.etana.co.za

Africa dedicated to business. We create firsts that lead because creativity

Thousands of daREDevils have fun while raising funds and awareness of testicular and prostate cancer at the run created by Etana. Most at risk of death from testicular cancer are men between 16 and 36 years of age and regular self exams save lives.

is in our DNA. Etana culture is also designed • The to make fun happen … parallel to excellence and gaining stratospheric altitude.

s Etana warer u first ins free to offer risk infrared ent assesm

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LO 60

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O A INNOVATIVE AND UNIQUE

L i o n o f A f r i c a I n s u r a n c e i s o n e o f S o u t h A f r i c a ’s leading short-term insurers, operating in the commercial and personal lines market segments with a range of specialist insurance products.

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A

spring

board INTO THE INSURANCE INDUSTRY At Lion of Africa Insurance, there are always opportunities regardless of whether you are a school leaver looking for a chance to earn while you learn, or a business graduate looking to kick-start a career in an industry where opportunities abound.

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Lebohang Mehalane

Lion of Africa Insurance graduate programme

Sibusiso Tshuma

A key vision for Lion of Africa Insurance is to attract ambitious, young talent to the industry. To achieve this, the company has initiated a graduate development programme.

This programme is a stand-alone course offered only to qualified graduates from universities, FET colleges, as well as technicians, who come from previously disadvantaged backgrounds and who want to pursue a career in the insurance industry.

The programme offers graduates exposure to the working environment, ensuring that they encompass all the traits that make up a fully fledged insurance sector employee. From a soft skills point of view, candidates learn computer skills, telephone etiquette, code of conduct, communication and time management skills to handle a work load and life skills. Graduates are also required to sit for the Regulatory Exams to learn how to become compliant and to know the code of conduct, as required by the Financial Services Board (FSB).

As a fully fledged business analyst, Sibusiso is now responsible for supporting the claims business unit in respect of all system support.

His focus areas are business continuity, continuous improvement and enhancement of processes, systems and general efficiencies. He also focuses on projects emanating from and involving the claims business unit.

As part of his structured career development plan at Lion of Africa Insurance, Sibusiso’s next milestone is to move to a senior business analyst role within the next three to five years. “I’d also like to join the list of certified professional International Institute of Business Analysts (IIBA) in South Africa. With the help of management, I would like to undergo training to become a member of the IIBA, in order to be exposed to the international insurance environment.”

Candidates are placed in various business units in the company, in line with their tertiary qualifications. In 2011, the company took on eight graduates, and last year, when the programme came to an end, six of the eight graduates were placed permanently in different Lion of Africa Insurance is South divisions including the IT, finance, HR, Africa’s first Level 1 triple BBBEE governance and actuarial divisions.

Who are we?

Sibusiso Tshuma, who has a BCom degree in IT management, successfully completed the graduate programme in 2011 at the company and has now been hired as a junior business analyst as a result of the promise he showed in the programme. Lion of Africa Insurance then assisted Sibusiso to complete a six-month diploma in business analysis, in order to further upskill him.

According to Lebohang Mehalane, manager of training at Lion of Africa Insurance, while the company does value academic success, graduates are not simply chosen on their tertiary achievements. “We check for competence and also their fit with the organisation, as we want them to fit with the Lion of Africa Insurance DNA in terms of values, potential and ambition.” She says the company has a core set of values that everybody lives by including integrity and professionalism, leadership skills and a winning attitude. “We work as a pride of lions to make things happen and are always on the lookout for talented individuals who are hungry to learn and challenge the norm to arrive at solutions.

short-term insurer and is a 100 per cent black-owned corporate and commercial insurer, with a yearly revenue of more than R750 million.

It is also the largest insurer to local authorities, a specialist underwriter for engineering business and one of the top commercial underwriters in the country.

“The Lion of Africa Insurance graduate programme, being my first experience in a professional working environment, was very challenging but enlightening. The transition from student to that of a working professional was difficult at first, however it didn’t take me long to adjust to my work environment, especially as my team was very supportive. They involved me in all areas of work, allowing me to gain practical experience, and therefore increasing my knowledge of the industry and developing many skills,” says Sibusiso.

“We think of Lion of Africa Insurance as a family where everyone is known by their name. We pride ourselves on the fact that everybody has the opportunity to learn and grow and to make the most of their skills,” adds Lebohang.

Your future work experience Lebohang explains that the insurance industry is all about hard work and commitment. “The key to career growth in the insurance industry is experience and those learners who show the most promise, commitment and ambition are given positions within the company to further their careers. It therefore goes without saying that people who are willing to spend time moving through various departments and learning about what makes the industry tick will always have prospects to develop specialist skills and grow their careers,” says Lebohang.

“Training and specialisation within the industry and accreditation through studies are essential to personal growth. The difference is that you can explore options and decide on your career path while you are employed.”

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The LOA insurance internship programme The internship programme applies to candidates who have completed the learnership programme and are looking to gain work-based experience. The programme is recognised and accredited by the insurance industry and provides candidates with the opportunity to complete the National Qualification Framework Levels 4 and 5 shortterm insurance certificates. The programme also pays for individuals to write the Regulatory Exams. These exams are a requirement if the candidate wishes to become an insurance adviser. To pass these exams, individuals are expected to carry specialised industry knowledge and capabilities.

Level 4 includes specialist learning and involves detailed analysis of a high level of information and knowledge of the insurance industry. Level 5 increases individuals’ depth of knowledge and understanding of the insurance industry, to enable the formulation of solutions and responses to complex problems and situations.

Laying the right foundation for a career in insurance Laying the right foundation for a career in insurance is essential to achieving career success. However, many eager school leavers do not have the opportunity to pursue their dream careers, as they do not have the funds to further their education. For this reason, Lion of Africa Insurance has specially designed in-house education and training programmes for school leavers who possess a National Senior Certificate (matric), giving them the opportunity to acquire the necessary skills to enter into the work environment. These programmes are open to individuals from previously disadvantaged backgrounds who cannot afford to fund their own studies.

As strong advocates for transformation in the country, and specifically the insurance sector, the company has also crafted a graduate programme to give graduates, who are from previously disadvantaged backgrounds, the chance to gain enough experience for an entry level job in the industry. “By developing and running in-house training and education programmes in conjunction with the Sector Education and Training Authority (SETA) – at both matriculant and graduate levels – the company is playing an active role in up-skilling candidates for internal and external recruitment,” says Lebohang.

These programmes include the Lion of Africa Insurance learnership programme, the Lion of Africa Insurance internship programme and the Lion of Africa Insurance graduate programme. All are facilitated by the Insurance Learning Academy and supported by the Insurance Sector Education and Training Authority (INSETA).

According to Lebohang, like many other sectors of South African business, the short-term insurance industry is currently experiencing a skills shortage, especially with skilled actuaries, developers, infrastructure and project managers, as well as business analysts within the IT divisions of the sector.

This means that for those entering the industry, especially a young, growing company like Lion of Africa Insurance, there are plenty of opportunities.

“We aim to develop skills within the sector by enrolling young learners into these programmes each year, where they are trained in life skills, underwriting, finance and claims. This provides them with a structured opportunity to grow within a company and play a role in addressing crucial skills shortages and transformation figures within the industry,” adds Lebohang.

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With the National Qualification Framework Level 5, candidates will be compliant with the Financial Advisory and Intermediary Services Act (FAIS); and from a legislative and compliance point of view, will have the industry required qualifications and the minimum industry requirements. Moreover, interns will acquire necessary skills including time management, communication skills, understanding processes and procedures, and managing the work environment. Interns will receive invaluable experience that would not be learned anywhere else until entering a working environment. In other words, this qualification will provide them with the foundational credits to build onto other higher level qualifications within the industry.

The LOA Insurance learnership programme The company’s learnership programme is applicable to matriculants who do not have the finances to fund their own tertiary education.

This programme provides candidates with the opportunity to complete the National Qualification Framework Level 3 short-term insurance certificate, which equips candidates with competencies at Levels 1 to 3, which is an introduction to short-term insurance and a requirement to work in this industry.

Level 1 will train individuals to have the basic knowledge and skills required to work in insurance, and the ability to apply learning while under the lead of a manager or supervisor. This level of learning exposes learners to activities which relate to everyday situations and job competence.

Level 2 empowers individuals with the ability to use their theoretical knowledge gained in Level 1 in varied situations to comprehend problems and make informed decisions, as well as perform varied tasks with some guidance or supervision. Learning at this level involves building the knowledge and skills needed in the insurance industry.

Level 3 allows individuals to gain and, where relevant, apply a range of knowledge, skills and understanding in the industry. Learning at this level involves obtaining detailed knowledge and skills. Activities involve dealing with multiple challenges that require the ability to make decisions that are informed by multiple frames of reference.

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Marsh incorporating Alexander Forbes Efficiency and professionalism are paramount

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Global insurance

innovation Marsh, the world’s leading provider of risk management solutions, is a truly global enterprise and an ideal company to work for if you want to see the world.

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Operating in over 100 countries across all global continents, some 25 000 Marsh & McLennan Group colleagues engage with all manner of corporate clients and with different national insurance markets, while encountering a variety of insurable risks and major loss events.

The in-house Marsh University platform enables Marsh staff to continuously connect, ask, share, learn, search, publish and view the enormous wealth of knowledge and experience offered by colleagues. The university has become a world of documented and personal knowledge, created and updated daily and exclusively

by Marsh colleagues.

When you contribute to Marsh University, it means sharing your knowledge, experiences and interests with fellow colleagues – through penning, recording blog-posts or participating in conversations – and receiving responses from around the world. You are never isolated and the site is in action 24 hours a day.

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

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

Marsh University reinforces our commitment to an environment where colleagues can 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.

We are committed to ensuring that our 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.

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I decided to join Marsh because the role would give me an opportunity to grow even further and, as Marsh had just gone through a merger with Alexander Forbes, the prospect was very exciting.

I lead the HR team to ensure integration initiatives are executed and I partner with the senior leadership team in the region to make certain that Marsh Africa has the capability and capacity to grow.

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

I got here with hard work and perseverance. You need to understand your own abilities, strengths and areas needing development. Build on your strengths and narrow the gaps in areas that need development.

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

There is no one-size-fits-all solution; each person has unique needs. However, you should remain at a company, or in a role, to develop domain expertise and to be seen as an individual who can see projects through to completion.

How has the insurance industry changed since you entered it?

It has become very competitive. You are able to develop your skills in various sectors due to the vast amount of talent in the field. There have been a number of mergers between the larger brokers.

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

Find out what you love doing and pursue that as a career. Sometimes we have areas that we are good at, but they would not be a viable career choice.

In other instances something makes a good career choice, but we don’t necessarily want to do it for the rest of our lives. The ideal is to find where those three things converge and develop and hone these into a career.

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

Muriel Sokkie

Executive Human Resources Division − Marsh Africa Why did you choose a career in insurance and how did you enter the industry?

I joined Marsh from General Electric (GE) South Africa where I held various HR positions, the latest being HR manager for the Southern and East African regions. I played an important part in establishing a team to strategically source talent, capitalise on growth opportunities and lead the formation of a sub-Saharan Africa strategy on acquiring, developing and retaining female and key talent.

It is a prosperous career where you are encouraged to develop yourself. There is a wide variety of fields to select and is competitive.

How is the insurance industry important to South African economy?

It is very important to the growth of the economy.

Industries must be adequately protected to guarantee business continuity.

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

A good education is the foundation for your future.

Be sure to arm yourself for your future by investing in your learning and development.

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RISK RULE#6 RISK RULE#6

CHOOSE YOUR BUSINESS PARTNERS CAREFULLY CHOOSE YOUR BUSINESS PARTNERS CAREFULLY

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Leading clients choose leading insurance brokers and risk advisors. And leading insurance brokers and clients choose insurance brokers and risk advisors.

AndRisk leading insurance and riskLeading advisors choose eachleading other. Marsh’s acquisition of Alexander Forbes Services bringsbrokers together risk advisors choose each other.

Marsh’s acquisition of Alexander Forbes Risk Services brings together two leaders in the insurance broking and risk advisory field. Both companies recognised the potential two leaders in the insurance broking risk advisory field. companies recognised the potential to serve their clients better through theand combined offering of Both Marsh’s global capability and expertise to serve their clients better through the combined offering of Marsh’s global capability and expertise with the market leading position of Alexander Forbes Risk Services in Africa for over 75 years. with the market leading position of Alexander Forbes Risk Services in Africa for over 75 years.

Leading clients, leading insurance brokers and risk advisors - leading risk solutions.

Leading clients, leading insurance brokers and risk advisors - leading risk solutions.

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A NEW PAN-AFRICAN LEADER A NEW PAN-AFRICAN LEADER broker and risk advisor has acquired Marsh, the world’s leading insurance Marsh, Forbes the world’s insurance and riskinsurance advisor has acquired Alexander Riskleading Services, Africa’sbroker pre-eminent broker.

Alexander Forbes Risk Services, Africa’s pre-eminent insurance broker.

MARSH AFRICA MARSH AFRICA www.marsh-africa.com | +27 11 060 7100 www.marsh-africa.com | +27provider 11 060 7100 An authorised financial services | FSB/FSP: 8414 An authorised financial services provider | FSB/FSP: 8414

Marsh Risk Rule #6_InMag_May2013

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Old Mutual Passionate about helping our clients achieve lifetime financial goals

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Investing in the future

As South Africa’s leading financial services and insurance brand, we understand the value and power of investing in people in order to enable brighter futures for all across our nation. products and services, ranging from investment, life assurance, asset management, banking, healthcare and general insurance, we’re a market leader that provides effective and professional savings and insurance solutions to our valued clients.

And, in order to continue offering our forwardthinking financial solutions while evolving and growing as a company, we know just how important it is to recognise and nurture the brightest young minds across our country. That’s why we’re totally focused on creating and maintaining a progressive and stimulating work environment that’s designed to bring out the very best in the smart, motivated and switched-on individuals who join our dynamic, winning team.

At Old Mutual, we value both individual skill and teamwork that’s inspired and supported by integrity, transparency and performance excellence. With limitless initiatives and room to grow and excel within Old Mutual, we encourage our people to improve their talents and make sure that we reward, recognise and nurture the brightest minds in the industry. We strive for excellence as an employer and company, offering our people, and the greater community, innovative and flexible opportunities and benefits, along with a strong commitment to customer-centricity, community investment, environmental initiatives and a relevant, comprehensive product offering.

As part of the global financial services group, Old Mutual plc, Old Mutual South Africa is the largest financial services provider in Southern Africa.

Currently employing more than 14 250 South Africans, our collective future focus is to expand our reach and expertise to the emerging markets across Africa, Asia and South America.

With a comprehensive variety of innovative financial

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Investing in tomorrow’s business leaders Our core philosophy revolves around investment and development opportunities as a platform for our employees to improve their skills and broaden their knowledge with training and development delivered through our flagship Old Mutual Business School (OMBUS).

OMBUS offers classroom training, online

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e owe our heritage and success to the legacy of those who have helped to shape and build our brand over the past 168 years – and we remain passionately committed to investing in the people who will take our company forward into the future.

We believe in winning as one team, and as we shift our focus from local to global, our priority is to create a strong committed team that’s able to deliver exceptional results and do great things.

A S A C ual t ry u a M s r d l u O B g n i t n Accou gramme Pro

Accounting bursaries

Kick-start yo u career with Sou r th Africa’s leading financial servic es brand!

Would you like a chance to join our team?

How to apply

Old Mutual is South Africa’s leading financial services

Download the application form from http://www.oldmutual.

provider. Our proud heritage and prominent position in the industry is reflected in our operational strength and performance (across all of our business interests), our robust balance sheet, powerful financial flexibility (with access to international capital markets) and our diversity of business.

co.za/about-us/careers-centre/bursaries-and-scholarships/ accounting-bursaries.aspx. The application must be completed in your own writing. You can also contact the Bursary co-ordinator at 021 509 2656 and we will gladly send you the application form.

Well-trained, qualified accountants contribute significantly to the success of Old Mutual and South Africa. That’s why we offer bursaries to the best young financial minds, to people who are passionate about pursuing a career in Chartered Accounting and making a real difference!

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Read through the requirements carefully.

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Send certified copies of your identity document and your results, not originals.

What does the bursary offer?

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Application deadline is 15th July of every year.

Old Mutual Accountancy Bursaries cover:

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If your results are not available please submit your

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The full costs of tuition at University of Cape Town (UCT)

application form in the meantime and indicate that your

or Stellenbosch University.

results will follow as soon as they are available.

Residence fees and one annual return flight home for

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Provide valid contact details.

students who are not studying in their hometown.

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Sections H & I of the application form need to be com-

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Vacation work.

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The better the quality of your degree the more incentives you will be offered.

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Don’t forget to attach the required handwritten biography and essay to your application form.

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We will not accept application forms sent via fax or email.

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Only South African citizens can apply.

You need a matric with at least 70% or Level 6 for all subjects including Mathematics (not Maths Literacy) and

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pleted by your school principal.

Book and general allowance.

How to qualify for the bursary?

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Useful information

■■

Please note that this oppor-

English.

tunity is intended for EE/AA

You also need to commit to our CA Training Programme

candidates only.

after which you will work for Old Mutual for a specified period of time. Please apply timeously for admission to

Contact number

the university.

Telephone: 021 509 2656

Submiss

The Coo ions rdin Accountin ator g Bursa ry FinRisC Human Re sources Old Mutu (4C) al Po Box 6 6

Cape To

wn 8000

_06.jpg

We’ve also created a number of programmes Mmathebe Logega_02.jpg and initiatives for high school and university students, which include the Old Mutual CA (SA) Training Programme and accountancy bursaries, actuarial bursaries and our Graduate Accelerated Programme (GAP).

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Mmathebe Log

The Old Mutual CA (SA) Training Programme offers accounting bursaries at UCT and Stellenbosch University to successful applicants with a NSC grade 12. The applicants need at least a B symbol for maths and English and want to select training outside of public practice (TOPP) internships at Old Mutual – which includes a comprehensive curriculum across all specific competencies.

Successful TOPP candidates must have obtained a certificate in the theory of accounting (CTA) or a portgraduate diploma in accounting (PGDAP) before they can apply for Old Mutual’s TOPP programme. The Actuarial Bursary Programme offers actuarial bursaries at UCT and Stellenbosch University to successful applicants with a NSC grade 12, with an A symbol for maths and English who want to follow a career in actuarial science.

Our Graduate Accelerated Programme (GAP) is available to university final years and postgraduates studying commerce, finance, business science, computer science/information technology, marketing, human resources/industrial psychology, accounting, investments, law, engineering, BSc maths and stats, auditing and tax.

It offers students the chance to fast track their Mmathebe Logega_07.jpg careers by joining GAP once they have completed their final year.

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Old Mutual – a great place to work Over and above our steadfast commitment to continue growing our brand, improving our product offering and putting our customers at the centre of all that we do, we remain passionate about cultivating our employees’ talents. We’re focused on making Old Mutual a great place to work, and we’re constantly developing new approaches to doing business in order to ensure success well into the future.

To us, thanking our employees for their hard work, dedication and talent is so much more than just paying them a salary. It is about showing them how valuable they are to us and rewarding them by recognising their innovations and efforts. Ours is a high-performance culture that thrives on excellence and personal development – the more you achieve, the more you receive – and we’ve made sure that everyone gets a comprehensive, guaranteed package tailored to their unique needs and accomplishments.

Because we value our people so much and believe in a balance between work and life, we ensure that our employees have access to flexible working hours, medical aid, life assurance, retirement

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Chartered for success

funding, maternity benefits, counselling and health programmes. Our working environment also reflects this work/life balance with on-site facilities which include a crèche, gym, canteen, shopping mall, sports facilities and access to financial services advice.

In addition, we’ve also set up various recognition and reward initiatives, such as the prestigious Workplace Heroes awards, showcasing exceptional individuals within our company who are valuable role models. It’s great to realise that our efforts and commitment to our people are being recognised as well. We were recently voted best employer by the Corporate Research Foundation and ranked number three by Deliotte in the large-sized company category as best company to work for.

So, if you’re passionate about a career in the financial services industry and are looking for a secure, dynamic future, room for growth and access to a world of opportunities with one of South Africa’s leading brands – look no further!

INMAG interviews Old Mutual chartered Mmathebe Logega_09.jpg accountant bursary holder Mmathebe Lobega about the diversity of being a CA and what it takes to get ahead.

Mmathebe Log

D

When did you know you wanted to become a CA?

G

I knew I wanted to become a CA when I was 15 years old. I was attending a career session in which the speaker was a CA. I remember how the prospect of being exposed to many businesses in very different markets attracted me.

At the time, the thought of investing, auditing or consulting to diverse businesses, from Pick n Pay to Anglo Platinum, was very exciting for me.

A T w

W r

What advice would you give to a budding CA about to start their studies?

O

The CA qualification is a long journey. Embrace every moment – even those moments that don’t seem to excite you at all. Every moment helps to shape your purpose; enjoy the journey and don’t forget to work hard.

C R a

Tell us what you do in an average day.

S

None of my days ever look the same. I find myself solving problems that differ both in magnitude and in complexity. What I do enjoy the most is analysing companies either for investment or for decision-making regarding strategy or operations.

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performance support and e-learning modules that support our business strategy and personal development requirements across a wide range of relevant topics and specialised subjects.

T

GENERATION GAP DISCOVER A WORLD OF OPPORTUNITY Graduate Accelerated Programme As South Africa’s leading financial services brand we understand the value of investing in people!

That’s why we’re always on the lookout for smart, motivated and switched-on individuals to join our dynamic, winning team.

With limitless room to grow and improve your talents, we ensure that the brightest minds in the industry are rewarded, recognised and nurtured!

Old Mutual’s Graduate Accelerated Programme is aimed at final and/or post graduate students studying:

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Commerce, Finance, Business Science, Computer Science/Information Technology, Marketing, Human Resources/Industrial Psychology, Accounting, Investments, Law, Engineering, BSc Maths and Stats, Auditing and Tax. So give your career the boost it needs and join South Africa’s best employer today!

To find out more about our GAP check out www.oldmutual.co.za/gap

Fill in the missing words. Chartered accountants are…

Business leaders.

What misconceptions do people have about chartered accountants?

Many people seem to think that auditing and accounting are all CAs ever do. That is incorrect on many levels.

What is the most enjoyable thing about being a CA? It is solving business problems creatively while having the technical financial knowledge to do so.

Sinenhlanhla Nzama_02.jpg

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

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

While at school, you must think about your career goals as early as possible. This allows you time to find out more about the career and to really think it through.

We are not number machines, and no, we don’t wear grey suits. Maybe actuaries were like that a few decades ago. We are changing and becoming more business professionals with a unique understanding of numbers, risk and commerce.

Once you are settled on a certain career, you tend to be more motivated and enjoy the subjects that lead you there. Good marks are likely to follow.

Straight after school, you need to be ready to learn (rather than earn).

A career to count on INMAG interviews Old Mutual actuary Sinenhlanhla Nzama about what it takes to get a bursary from Old Mutual and he reveals some handy study tips for young learners.

Why do you think you got a bursary from Old Sinenhlanhla Nzama_06.jpg Mutual?

Old Mutual chooses its bursars from so many applicants from across the country, from all types of schools and communities. My grade 11 marks were very good. However, I believe I was able to demonstrate the ambition and curiosity in my essay and the answers to the scenarios they gave me.

So I did a bit of research on actuarial science and I probably asked the interviewers more questions than they did.

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Sinenhlanhla Nzama_03.jpg

Tell yourself you are going to learn as much as possible in the early years of your career. If you have choices, do not rush for the employer or positions that will pay you more money, but go for those that will empower you as a young professional.

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

Nothing in life is easy, and studying is not easy. I would tell him that challenges are going to come, Sinenhlanhla Nzama_07.jpg but don’t be shocked, it’s part of the journey to your ultimate goal.

What is your best studying tip?

Plan your study programme before you start. It must be very detailed and realistic, with the exact number of hours and chapters you will do each day.

Then practise your exam techniques as much as possible. But the best tip is that there is no substitute for hard work.

Sinen

What is the best thing about being an actuary?

A generous salary, flexible working hours (sometimes I get to the office at 10h00) and being able to think analytically. But the best is your impact on both your company’s future and the lives of your clients.

Most of the work we do is really a difference maker when planning for savings for education and retirement. It’s a matter of life and death if you think about our work for medical aids and life insurance.

Sinenhlanhla Nzama_08.jpg

To find out more about us, visit oldmutual.co.za today.

Sinen

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How awesome How are you really? are y TheThe Old Mutual opportunity Old Mutual opportunity

You get support from support the day you matriculate, throughout youryou actuarial studies to qualificationthroughout You get from the day matriculate, and beyond.

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Our Chief Executive Officer Long-T a bursary student. We now offer you a bursary study atoffer UCT or Stellenbosch if YOU think you a bursary student.

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Drive, energy and initiative Good networking opportunities

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That special x-factor that proves you’re a cut above the rest!

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The OldThe Mutual Old edge toMutual keep you going edge to keep you going At the end of the journey you will join an elite, talented pool.

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with specia

financial arenas – finance, fund management, investment

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retirement and risk planning – among others.

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Coloured and Indians (ito of EE Act).

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experts in different fields, shaping South Africa’s experts in different fields, shaping South Africa’s omms 02.2013 L5454

retirement

Closing date: 30 July 2013

Working with acknowledged industry-leading

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You will be

with specialised skills in risk management across a range of

Guaranteed employment after university

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financial future. financial future.

At the end

For more information, contact Banele Dondolo at 021 509 2656, email bdondolo@oldmutual.com or 021 509 2656, ema For more information, contact Banele Dondolo at Sibongile Ncube at 011 217 1707, email sncube@oldmutual.com.

I www.oldmutual.co.za/careers Sibongile Ncube at 011 217 1707, email sncube@oldmutual.com.

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S SASRIA

Sasria SOC Ltd Insurers for special risks in South Africa.

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onal risk

Insuring companies against damage and financial losses caused by riots, public disorder, labour disturbances, civil unrest, strikes and lockouts makes Sasria one of the most exciting insurance companies to work for.

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Formed in 1979 to provide insurance cover for politically motivated riots, the cover has now extended to include damage caused by nonpolitical riots, public disorder and terrorism.

In a country as diverse and interesting as South Africa, there will always be a need for a special risks insurer, and working for Sasria puts you at the forefront of the events that define South Africa as a country. The company’s goal is to help create an environment for positive growth and change, by lending stability and offering peace of mind to all South Africans, especially when faced with extraordinary risks.

There always seems to be something going on, from the strikes in the mining industry that resulted in the tragic shooting at Marikana, to the labour unrest in the farming community in the Western Cape, to the violent protests in Sasolburg in the Free State over the merger of two local municipalities.

Since 2004, the number of recorded protests in South Africa is steadily increasing and reached an all-time post-apartheid peak in July 2012, making the work that Sasria and its employees do all the more relevant. The company reported an increase of 135 per cent in its claims frequency in 2012, with more than 70 per cent of these claims labour strike related. There was, however, a decrease seen in the average value of claims. The majority of these claims were settled under the standing charges (fixed expenses, which do not change in proportion to sales) and material damage sections, reports Fick. “Our rating is not based

on industry models. Instead we apply a fixed rate to the asset value of the insured.” Sasria insurance is a non-refusable product and as such, any application or request for cover received via an agent or broker must be accepted. No waiting periods are imposed.

In response to the protests, the local Sasol plant suspended its operations indefinitely and shops and businesses in the area were forced to close their doors. Undoubtedly, there was a substantial economic cost accompanying business interruption of that scale.

Claims received as a result of the recent Western Cape agricultural strikes are estimated at R50 million and rising, while media reports put the economic cost at over R100 million. Part of the work Sasria does is to assess the potential risk of events like this happening and offer cover to clients to protect themselves. “Over the last couple of years, the organisation has been gearing itself up for these changes. Despite the increase in claims frequency and severity, we remain profitable and well capitalised,” says Keith Fick, executive manager of insurance operations at Sasria.

Following the initial farm strike in 2012, Sasria received a large increase in new business from the agri-sector. However, there was no reciprocal increase in claims after the more recent protests, as they were not as violent.

The insurance industry is about more than just covering valuables against theft. It is about providing businesses and people with the freedom and confidence to go about their daily business with confidence and peace of mind.

Sasria comes to the rescue In August 2010, a severe storm in the Mpumalanga region ripped the roof off the Vumazonke Primary School’s library, kitchen and classrooms, leaving much of the school without protection from the elements for two years.

The Vumazonke School pleaded with the Department of Education to lend a helping hand, but it was unable to help and said the school needed to finance its own repair work. The school in the Kosini informal settlement near Weltevrede finally had its roof repaired in 2012, thanks to an article in the Beeld.

Nico Knop, marketing manager at Sasria MSB, a short-term insurer, read the story in the newspaper and realised that the company would be able to make a difference by helping this school. The repair work started on 1 November

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2012. “We’re ecstatic and relieved about the repair work,” says Koos Masombuka, principal of the Vumazonke Primary School.

“Sasria has done excellent repairs to the damaged parts of the school. At the moment we have 150 pupils, but we are hoping that more parents will enrol their children considering that the building is now in a much better condition,” says Masombuka.

Sasria plans to carry out repairs in two phases. The first is complete, while the second will commence once the company has the money to do so. “We have completely replaced the roof, installed new doors and windows, and painted the building inside and out. In the second phase, we will make sure the school receives essential services such as electricity,” Knop says.

people The

of Sasria

to ht in g i s n for ni a d n n i a to ga industry a i r s ung e o c Sa y n f r a o o insur ful tips f r in the yees o e l h t p p e th em work in few hel e a care i w d a to u hatte it is like ll as purs industry. c e o w e t s t n W s wha Sasria, a ers kee rvice e s n l r a ci lea finan

Letlhogonolo Tau Customer relationship officer Why did you choose insurance as a career and how did you join the industry?

I had a passion for financial service, so I started in the banking industry. When I was looking for a new challenge, insurance provided the best and most diverse option. I also chose the industry because of my understanding of the concepts and benefits associated with insurance.

Yes, I am currently studying for a certificate in short-term insurance through Milpark Business School. I will definitely continue studying as I believe in continuous improvement and my thirst for knowledge keeps me motivated to carry on studying.

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

Understand your personality, drive and passion; talk to people in the insurance industry and the IISA. After you have gathered all the relevant information and you believe insurance is for you, go for it.

What do you most enjoy about your work?

I studied risk and operations management.

I thrive on the challenges thrown at me daily and working with and meeting people from different cultures and backgrounds. I also appreciate the role Sasria plays in our economy given the recent rise in incidents related to the special risks that we cover.

Are you still studying; and if so, what are you studying? Will you continue with studies?

Why would you recommend a career in insurance to young South Africans?

What courses did you study to reach this part of your career?

Insurance is a dynamic and opportunity-filled industry. With the right knowledge and attitude, you will thrive and grow. The industry also applies to all sectors of the economy. There are opportunities in marketing, sales, IT, claims, finance and HR. It is important, however, to have passion for what you do.

What misconceptions do people have about insurance?

Some people believe that insurance is not necessary and it is all about collecting premiums. This is not the case; insurance allows people and business to protect themselves against risks and it affords them the security to continue growing.

Tell us what you do in an average day.

My day involves managing and maintaining relationships with all insurance companies that we work with, as well as constantly striving to raise the Sasria profile. This changes daily as the role also involves attending various industry meetings and functions.

What would people be surprised to learn about you?

I can’t sing but at least I can dance.

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I am currently doing a certificate in insurance through Milpark Business School and will continue studying in the insurance industry to further my professional development.

What misconceptions do people have about insurance?

Themba Sibiya

Do what you love and love what you do. I have always believed that those who do things that they are passionate about are much happier in their chosen field, whatever the course may be.

The Kasi phrase that people normally quote is: nithatha imali, bese kunzima ukubhadala meaning ‘insurance companies take money, but it’s difficult to get them to pay at the claims stage’.

Obviously from the experience I have in the industry, I know having insurance of any kind is essential. Not all of us have surplus income to take care of a flooding day (rainy day).

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

What do you most enjoy about your work?

Tell us what you do in an average day.

I didn’t choose insurance as a career; I landed in this field after a short spell in engineering, but some things are just meant to be.

I enjoy the fact that I learn new things every day. I also enjoy the interaction with smart and ambitious people; insurance covers a number of different business sectors, which affords constant opportunities to learn.

My day revolves around making sure that everyone is happy, both internally and externally, and that we are providing the best service to our clients.

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

Claims manager

What courses did you study to reach this part of your career?

I studied internal auditing.

Why would you recommend a career in insurance to young South Africans?

What would people be surprised to learn about you?

Are you still studying; and if so, what are you studying? Will you continue with studies?

The insurance industry is broad and includes a number of fields; IT, legal, engineering, finance, actuarial science and marketing.

For some strange reason I have recently started collecting hunting knifes. I do not know where the passion comes from, in case you were wondering.

Mmakgomo Motalane

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

exist, but also to other types of related careers, which people may not be aware of, such as intermediary services and loss adjusting.

What misconceptions do people have about insurance?

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

Career counselling is the way to go. Career options are narrowed down in terms of personality traits, and they can help students realise what it is they really want to do. Researching the different types of careers is also helpful – information is more readily available on the Internet or at libraries.

Senior claims controller

I did not choose insurance, I was lucky enough to land a job in the industry after finishing school, as I had not channelled myself into a specific field with the courses I majored in. Fortunately, I enjoyed it and decided to stay.

What courses did you study to reach this part of your career?

I studied a BCom degree in management and statistics.

Are you still studying; and if so, what are you studying? Will you continue with studies?

I am currently busy with the higher certificate in insurance. I will continue to study to improve my knowledge and bring myself up to date with changes that are taking place within the industry. I want to further my career and continuous education is important to future success.

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It is important to start researching early as students will need to choose subjects in high school that will earn them a university entrance towards the course they want to study. Flexibility is another thing to keep in mind in terms of their choice of careers.

They must allow themselves the luxury to pursue other careers when the first career choice does not work out.

What do you most enjoy about your work?

I enjoy the challenge of having to come up with solutions for complex claims.

Why would you recommend a career in insurance to young South Africans?

A career in insurance not only exposes you to the different aspects of the insurances industry that

There are many misconceptions, like insurers are just out to cheat people of their money, or the only thing you can do in the industry is sell life cover. People do not take insurance as a necessity until they are in trouble. People do not think one can have a career in this industry, but the financial services industry is the secondlargest employer in South Africa.

Tell us what you do in an average day.

I authorise payments, deal with both internal and external complaints and queries. I do quality assurance on the claims and assist the team with technical matters. I also manage a team in terms of on the job training and personal development.

What would people be surprised to learn about you?

I wanted to be a doctor and when that did not work out, I opted to study commercial subjects.

Lindiwe Magobholi Risk manager

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

From high school, I had always wanted to be a part of the financial services industry and insurance happened to be one pillar within the industry that interested me. I joined the industry as an internal auditor in May 2010.

What courses did you study to reach this part of your career?

I have a BCom in financial accounting and honours in internal auditing both from the Pretoria University.

Are you still studying; and if so, what are you studying? Will you continue with studies?

What misconceptions do people have about insurance?

Yes, I’m currently busy my fourth paper of the CIA (certified internal auditor) exams. I will continue to explore what is in the market that I can study to advance my line of work.

I think the biggest misconceptions are that insurers are not legitimate; they do not pay claims and therefore not being there when you need them.

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

Tell us what you do in an average day.

I would encourage them to look at education not as a choice but as a necessity, as it is vital for the human mind to keep on learning and advancing in life. One has to keep on progressing and education is the best way to that.

What do you most enjoy about your work?

The scenario analysis as part of managing risks and analysing the effectiveness of the controls we implement to minimise our exposure to risks.

Why would you recommend a career in insurance to young South Africans?

In this modern age, it is impractical to finance your potential misfortunes from your pocket. Insurance is the only way to ensure security and the industry offers viable career paths.

I review the risks that Sasria is exposed to internally and externally to ensure that the business objectives are realised. Once the risks have been identified, I review whether our controls are adequate to ensure that the impact the risks might have is minimal.

The industry is also exposed to regulation and I am responsible for ensuring that we meet any new risk requirements.

What would people be surprised to learn about you?

I serve as the secretary general on the board and executive committee of the SEIDET (Siyabuswa Educational Improvement and Development Trust), a non-profit organisation that advances education in Siyabuswa and surrounding areas in Mpumalanga.

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B Standard Bank Enabling a brighter future for all

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B

Thinking

AHEAD

To stay ahead of the competition, we promote economic inclusion and employ a diverse workforce to make a real difference to the communities we work in.

One of the world’s best The Standard Bank Group (SBG) has always taken pride in being a world-class organisation and its inclusion in the Global 100 Most Sustainable Corporations in the World list proves that notion.

SBG was ranked 98 on the list and was the only African company in the top 100. It’s also one of only nine banks listed. The Global 100 are selected after rigorous independent assessment of 4 000 global mid-, large-, and mega-cap companies in all industry sectors that have a market capitalisation in excess of US$2 billion (R18.3 billion).

The annual ranking is the most extensive datadriven corporate sustainability assessment. It is based entirely on publicly disclosed data such as financial filings and sustainability reports. It is conducted by an independent panel facilitated

by Corporate Knights, a specialised media and financial information products company focused on clean capitalism and recognised as a leader in measuring the financial value of sustainability.

Clean capitalism is an economic system in which

prices incorporate social, economic and ecological benefits and costs, and participants know the full impact of their marketplace actions.

The Global 100 ranking acknowledges those companies that are best positioned to thrive in a clean capitalism economy and it is an enormous feather in SBG’s cap to have been included.

“This ranking is recognition of Standard Bank’s systematic approach to building a more sustainable company, one that builds on our 150-year history and positions us for the future.

Sustainability is part of our corporate journey and one that we believe will position us for ongoing success,” says Jacko Maree, SBG chief executive.

Why choose Standard Bank?

SBG is a leading African banking group focused on emerging markets. Our clients all round the world enjoy outstanding market advantages, built upon an intimate understanding of developing markets, a well-established and highly respected corporate and investment banking offering, and strong, distinctive, local networks.

We currently operate from 36 countries and continue to expand our global presence. Our commitment to real collaboration encourages international knowledge sharing and skills transfer across international frontiers.

Our people prosper within a dynamic and supportive culture, and our clients place great value on our innovation, insight and dedication.

At SBG we reward individual and team performance with competitive remuneration and incentive programmes, and we encourage our people to mature and progress with extensive learning and development opportunities.

We encourage our staff to move between different areas of the business, and help us bring together diverse skills and varied expertise to create innovative, highperforming teams.

With SBG you will enjoy a challenging, stimulating and highly rewarding career, in a working environment that is fast-paced, exciting and empowering.

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SB Our values Growing our people

Serving our customers

We encourage and help our people to develop to their full potential, and measure our leaders on how well they grow and challenge the people they lead.

We do everything in our power to ensure that we provide our customers with the products, services and solutions to suit their needs, provided that everything we do for them is based on sound business principles.

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Delivering to our shareholders

We understand that we earn the right to exist by providing appropriate long-term returns to our shareholders. We try extremely hard to meet our various targets and deliver on our commitments.

Being proactive

We strive to stay ahead by anticipating rather than reacting, but our actions are always carefully considered.

B

More than just a bank

Working in insurance

We don’t just put our money where our mouth is; we put our people and their passion where the need is.

It allows you to put your management, finance and economics studies into practice and use your strong interpersonal skills to assist clients finding the best insurance solution to fit their needs. Insurance is a well-paid, rewarding and exciting profession, which gives you the opportunity to sample a variety of areas and develop transferable skills. For an industry that’s been around for centuries, it continues to evolve and is experiencing one of its greatest periods of transformation. It’s an industry which is one of the cornerstones of an economy and you will help businesses proceed within a framework where their risk exposures are well understood and greatly reduced.

At Standard Bank, we take our commitment to the communities we work in very seriously. In fact, one of our core values is to ensure that the work we do is relevant to the societies we work in. Our graduates choose projects to invest in each year so, once you join a graduate programme, you’ll soon get a taste for projects like these.

Our Employee Community Involvement (ECI) programme in South Africa gives our people the chance to work with communities and help to create positive change in the lives of the people they serve.

Our people choose to get involved in a variety of projects, including: Health: HIV/Aids, cancer, epilepsy, orphaned and vulnerable children and those living with disability, the elderly and feeding schemes within communities. Community development: building houses for people in need.

• Building animal shelters.

• Community entrepreneurial programmes: teaching entrepreneurial skills to communities.

• Humanitarian initiatives: the rehabilitation of persons under social stress.

Projects supported by the ECI include the Niall Mellon Housing Initiative, where 850 Standard Bank volunteers helped to build 20 houses in Gauteng and the Western Cape. Other fundraising initiatives, such as Cycle for Kids and the CANSA Shavathon, have become flagship projects.

Standard Bank people around the world also contributed towards aid for Haiti after the massive earthquake there in 2010. The bank matched their contributions bringing the total donation to R1 million.

Our strategy To build a leading emerging market financial services organisation using all our competitive advantages to the full. We focus on delivering superior sustainable shareholder value by serving the needs of our customers and, where appropriate, connecting them globally. The key differentiator in achieving our strategy is our people.

Working in teams We, and all aspects of our work, are interdependent. We appreciate that, as teams, we can achieve much greater things than as individuals. We value teams within and across business units, divisions and countries.

Guarding against arrogance We have confidence in our ability to achieve ambitious goals and we celebrate success, but we must never allow ourselves to become arrogant.

The importance of insurance for business Often insurance is seen as a grudge purchase by consumers, but it can be the difference between a business having to shut down or be able to continue trading when disaster strikes. Many small business owners put all their assets and lives into their businesses and without adequate insurance unforeseen events could stop everything in its tracks.

“Insurance is necessary for all businesses. When you own a small retail business and it has absorbed all you have, insurance is vital,” says Johan van Greuning, head: corporate and business insurance at Standard Bank.

The question most asked by small business owners is whether an insurance broker should be involved in arranging business insurance. “This depends entirely on what suits you,” says Van Greuning.

“Many people running traditional businesses are happy to arrange insurance by phone. If your business is different to others, and if you are concerned about being under- or over-insured, the best thing to do is to contact a broker.”

The benefit of a broker is that they will arrange for any additional resources needed to assist the client, such as organising an assessor to visit your premises and inspect fittings. They will discuss all insurance needs. Insurance can then be arranged by the broker who will also act as an intermediary with the insurance company should a claim become necessary. It’s the broker’s job to make their client’s experience with insurance as easy as possible.

Respecting each other We have the highest regard for the dignity of all people. We respect each other and what Standard Bank stands for. We recognise that there are corresponding obligations associated with our individual rights.

Upholding the highest levels of integrity Our entire business model is based on trust and integrity as perceived by our stakeholders, especially our customers.

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Reaching the unbanked The SBG is committed to transforming South Africa’s racially based social and economic past.

The group was intimately involved in the process of formulating the 2003 financial sector charter, which provided a framework for broad-based black economic empowerment. In April 2003, a consortium, including Standard Bank, formed a new empowerment financial services company, Andisa Capital.

The group’s strategy involves providing easier access to financial services to a wider stakeholder base. In April 2000, Standard Bank and the micro-lender, African Bank, announced a mass market banking joint venture. Standard Bank provided African Bank loans through its AutoBank E and branch network, while African Bank offered Standard Bank E Plan accounts through its outlets.

By 2004, previously unbanked and remote rural markets came within easier reach through the introduction of the easy-to-assemble bank-in-abox; drop-down ATM kiosks, the low-cost Mzansi Blue Account as well as a specialist housing unit which focused on home-ownership for low-income households.

A joint venture in August 2005 with cellphone service provider MTN saw the launch of a bank that works entirely over cellphones. To deliver banking to the broader market, the bank’s community banking unit challenges traditional banking methods and focuses on consumer education.

Stanlib introduced its Shari’ah Equity Fund in 2007, which focuses primarily on capital growth and preservation, respecting the rigorous Islamic strictures, such as the prohibition on interest-driven earnings and the ban on investment in companies engaged in activities offensive to Muslims.

Activities in South Africa Inkululeko Yesizwe Primary School Our CIB graduates supported this school in Vlakfontein, an informal settlement south of Johannesburg. As the only school in this impoverished area, Inkululeko Yesizwe caters for a wide range of pupils. When the graduate team first visited, the school had no permanent structures – just prefab buildings – and 90 per cent of the 680 pupils were on the government feeding scheme. For most, the two pieces of bread and jam they got at school was their only meal of the day.

The CIB graduates really threw themselves into raising funds to support the school and managed to collect over R100 000. With this money, the first permanent structure on the school’s grounds – a kitchen – is being built, which will be well stocked to give the pupils the nutritious meals they need every day.

Winter warmers Another of the CIB graduate fundraising initiatives was a collection of winter clothes and blankets

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throughout our Johannesburg offices. The graduate team put decorated boxes in the staff kitchens in two office buildings to collect items, and organised a marketing campaign to encourage people on all floors to fill them with donations as many times as they could.

Daveyton Education Programme In February 2010, our PBB Leadership Development Programme (LDP) graduates worked with this initiative to provide additional lessons for 90 schoolchildren in the township of Daveyton.

The LDP graduates identified a number of areas where they could add value to the programme, including arts and culture, environmental awareness, reading and writing skills, soccer, cricket and swimming. Over two consecutive weekends during February 2010, they put their plans into practice, running a number of activities that really energised the children. The whole programme not only helped the graduates to develop leadership and teamwork skills, but also gave them a valuable insight into how we go out of our way to give something back to the communities we work in. eThembeni Orphanage PBB LDP graduates raised over R86 000 in 2009 for the eThembeni Orphanage in Doornfontein.

This orphanage cares for HIV infected and affected children, as well as abandoned and abused children. The graduates visited the orphanage on a number of occasions and donated their time to this worthy cause. The relationship between the orphanage and the PBB LDP has grown from strength to strength and has become a regular feature of the training and development programme.

Sports and arts sponsorships We’re a big sponsor of African soccer, including the African Cup of Nations, as well as the South African cricket team and the Pro20 Series in South Africa.

In the arts, the Standard Bank Gallery in downtown Johannesburg is a world-class facility that features shows by leading local and international artists. We also sponsor a number of major jazz events, such as the Johannesburg International Jazz Festival and the Cape Town International Jazz Festival.

Activities outside South Africa UK

Our people in the United Kingdom work with our charity partner Community Links in a number of ways, from empowering children and young people and running skills workshops for teenagers, to inspiring confidence in others.

Ghana

Argentina

Our Art in Schools programme was selected by UNESCO as a leading case in art teaching. This innovative educational experience is aimed at high school students, and 13 educational institutions are currently carrying out this experience, reaching more than 8 000 students and training 1 000 teachers.

Employees from Stanbic Bank Ghana donated drinks, biscuits, household items and a cheque for GH30 million (R16 000) to Street Girls Aid in Katamanto, Accra. They then painted the premises giving it a fresh and bright look. Street Girls Aid is a Ghanaian non-governmental organisation set up in 1994 to help girls who live and work on the streets.

Namibia

Standard Bank Namibia donated R125 000 to the Youth Entrepreneurship Seminars Trust, which aims to empower youth through business literacy to prepare them for employment or entrepreneurship.

Botswana

Standard Bank employees in Botswana participate in the annual Makgadikgadi walk to raise money for the Y Care Foundation for disadvantaged children.

Lesotho

Standard Lesotho Bank employees worked with Habitat for Humanity, an organisation that builds and renovates houses for disadvantaged people.

The Fobane project aimed to build a house for orphans in the Leribe district.

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GLOSSARY 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 company’s or those of its policyholders who are insured by policies permitting or calling for audits.

assessor

See loss adjuster

brokerage

Used interchangeably with broker when referring to a firm rather than an individual. Also called brokerage house or brokerage firm.

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.

direct insurer

A direct insurer transacts directly with the public and not through a broker. Examples of direct insurers include Outsurance, MiWay and Dial Direct.

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

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evidence that could be presented in a court of law.

(Source: http://www.asosai.org/asosai_old/journal2001/ forensic_auditing.htm)

FSB

The Financial Services Board 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.

indemnify

To protect against damage or loss.

indemnity

Protection or security against damage or loss.

independent broker

An insurance agent who sells insurance as an independent contractor while representing one or more insurers of the broker’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 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.

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.

intermediary

See financial adviser/broker/independent broker

insurance broker

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).

insurance claim

A formal request to an insurance company asking for a payment based on the terms of the insurance policy. Insurance claims are reviewed by the company for their validity and then paid out to the insured or requesting party (on behalf of the insured) once approved. Usually only the person(s) listed on the policy are entitled to claims payment.

(Source: http://www.investopedia.com/terms/i/insurance _claim.asp)

insurance fraud

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

Mr Edward Lloyd opened a coffee house that became a popular haunt of ship owners, merchants, and ships’ captains, and thereby a reliable source of the latest shipping news. It became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures.

long-term insurance

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, 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

loss adjuster

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.

mentorship

A formal relationship between a student and a professional adult or organisation to further the student’s knowledge, skills or career.

niche

A distinct and separate part of a market.

pension fund

A fund established by an employer to facilitate and organise the investment of employees’ retirement funds contributed 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.

An official or formal programme to give practical experience for beginners in an occupation or profession.

(Source: http://www.investopedia.com/terms/p/pensionfund. asp#ixzz1oRPEH08D)

liable

Types of insurance written for individuals rather than businesses, for which the term commercial lines applies.

Legally responsible.

liability

The state of being liable.

life insurance

The promise to pay at the death of the insured, or at another determined time if earlier, an amount larger than the total value of the premiums paid by the insurer for the promise.

Lloyd’s of London

Lloyd’s is the world’s specialist insurance market. Unlike other insurance brands, it is not a company, but a market where members (including managing agents) join together as syndicates to insure risks. In the late 1680s,

personal lines

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.)

reinsurance

1. T he 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 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

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.

short-term insurance

An insurance product or discipline involved in providing cover for goods and eventualities, where the cover is not directly linked to a person’s life. Household, home, business and car insurance are examples of shortterm insurance, because 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

underwriting management agency (UMA) A business entity that underwrites risks on behalf of an insurer. UMAs are often specialists in certain classes of insurance, such as marine insurance or engineering insurance, and underwrite these risks on behalf of an insurer.

premium

The amount of money an insurance company charges (monthly) to provide insurance coverage.

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C O N TA C T S

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S t a n d a rd B a n k

Graduates@standardbank. co.za.

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