Brokers lose confidence in SA economy

Insurance brokers are losing confidence in the South African economy, according to a survey released on Tuesday.

“… the results for the first quarter of 2011 shows that brokers’ confidence in the outlook for the economy has dropped to 61%, down from 66% recorded during the last quarter of 2010,” CIB Insurance said in a statement on its Broker Confidence Index Survey.

The survey found brokers were continuing to lose confidence in business conditions for the local insurance industry over the next 12 months.

Confidence levels dropped to 62% during the first quarter in 2011, from 67% in the previous quarter.

Jonjon Smit, sales director of CIB Insurance Solutions, said this might indicate the South African economy was not recovering as well as people thought.

Brokers’ confidence in attracting new business over the next 12 months dropped significantly to 71%, from 76% in the previous quarter.

“Insurance brokers tend to obtain new customers at the same time as consumers are purchasing items and are therefore looking to insure them.

“The drop in confidence levels in prospects for the industry and new business suggests that brokers are not expecting a significant pickup in consumer spending,” said Smit.

Brokers were more confident about maintaining their current customer book in 2011, with 79% expressing confidence in their ability to retain existing clients, an increase of 1% since the last quarter.

Brokers said their biggest problem in the next 12 months would be complying with new legislation and regulations. Their main concern was probably the financial services board regulatory exams, Smit said.

“All key individuals and representatives need to complete the first level of the exam, which will cover general compliance, by December 2011. This looming deadline is causing some uncertainty amongst brokers.” — Sapa

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever. But it comes at a cost. Advertisers are cancelling campaigns, and our live events have come to an abrupt halt. Our income has been slashed.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years. We’ve survived thanks to the support of our readers, we will need you to help us get through this.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.


Zuma turns on judiciary as trial nears

Former president says pre-trial correspondence is part of another plot

High court declares Dudu Myeni delinquent

Disgraced former SAA chairperson Dudu Myeni has been declared a delinquent director by the...

SANDF inquiry clears soldiers of the death of Collins Khosa

The board of inquiry also found that it was Khosa and his brother-in-law Thabiso Muvhango who caused the altercation with the defence force members

Lockdown relief scheme payouts to employees tops R14-billion

Now employers and employees can apply to the Unemployment Insurance Fund for relief scheme payments

Press Releases

Obituary: Mohammed Tikly

His legacy will live on in the vision he shared for a brighter more socially just future, in which racism and discrimination are things of the past

Openview, now powered by two million homes

The future of free-to-air satellite TV is celebrating having two million viewers by giving away two homes worth R2-million

Road to recovery for the tourism sector: The South African perspective

The best-case scenario is that South Africa's tourism sector’s recovery will only begin in earnest towards the end of this year

What Africa can learn from Cuba in combating the Covid-19 pandemic

Africa should abandon the neoliberal path to be able to deal with Covid-19 and other health system challenges likely to emerge in future

Coexisting with Covid-19: Saving lives and the economy in India

A staggered exit from the lockdown accompanied by stepped-up testing to cover every district is necessary for India right now

Covid-19: Eased lockdown and rule of law Webinar

If you are arrested and fined in lockdown, you do get a criminal record if you pay the admission of guilt fine

Covid-19 and Frontline Workers

Who is caring for the healthcare workers? 'Working together is how we are going to get through this. It’s not just a marathon, it’s a relay'.

PPS webinar Part 2: Small business, big risk

The risks that businesses face and how they can be dealt with are something all business owners should be well acquainted with

The best local and international journalism

handpicked and in your inbox every weekday