/ 31 August 2011

Insurance groups need higher transformation growth

Prominent insurance providers need to review their approach to in-house training programmes, in order to meet key transformation goals and assist with skills development in South Africa’s fast-growing short-term insurance sector.

This is according to Adam Samie, chief executive of Lion of Africa Insurance — the first insurer in the country to achieve Level 1 B-BBEE status — who says that training is a key platform to achieving meaningful transformation in South Africa, as well as long-term skills development.

“Many local businesses currently bemoan the standard of education and graduates entering the workplace, but do very little to improve skills internally. Companies should take a lot more responsibility by developing and running in-house training and education programmes in conjunction with Sector Education and Training Authorities, at both matriculant and graduate levels.

“These programmes are then tailored to ensure that staff members are able to meet and exceed the requirements necessary to function in the modern short-term insurance environment.”

Lion of Africa Insurance currently runs in-house programmes that provide learners with structured, workplace-based learning, consisting of a theoretical component with The Workers Academy of Insurance (an accredited Inesta provider), as well as providing practical training in underwriting, finance and claims.

“Approximately 15% of our workforce is currently made up of programme learners and graduates.”

Stepping up
Samie says that locally, the Insurance Institute of South Africa can also play a more activist role in educating and informing insurance industry players about key transformation targets and available programmes.

“Currently, training programmes are also too rigidly in line with South African Qualifications Authority standards and the result has been too few candidates with the required knowledge to perform to internationally-accepted service standards.”

He points to the United Kingdom example as a potential solution whereby the country’s Chartered Insurance Institute proactively formed a professional standards authority to ensure that all employees meet the required standard to function effectively in the insurance sector.

“This approach is an effective way to set and maintain insurance industry standards amongst employees and can be mirrored in our country. We need to urgently step up procedures to upgrade our insurance force.”

According to Samie, transformation in the short-term insurance sector was not about mere compliance, but about contributing to the development of the previously disadvantaged people in South Africa’s multi-cultural society, ensuring that the country could ultimately achieve its economic goals on a sustainable basis to the benefit of all.

“True empowerment will also aid South Africa’s market share on the continent, specifically in the short-term insurance sector, which, while small in global terms, is the largest segment by far on the continent. This market represents one of the biggest opportunities for new products and growth in our country and I believe local companies can play a key role in servicing other African markets, as well as other emerging economies globally,” concludes Samie. — I-Net Bridge