What's Happening?

Facebook Twitter Youtube Linkedin

NEED HELP? QUESTIONS@FIA.ORG.ZA

become A FIA member TODAY
member login

South Africa’s intermediaries are not unique or alone in the world

ARTICLE BY

  • FIA

SHARE THIS POST

FIA president, Peter Olyott, and CEO, Lizelle van der Merwe, recently returned from the World Federation of Insurance Intermediaries (WFII) World Council Meeting in Lisbon with a positive outlook for the global intermediated insurance market.

The meeting was attended by intermediaries and intermediary bodies from around the world, as well as key stakeholders such as the International Association of Insurance Supervisors (IAIS), European Supervisory Authority (EIOPA) and the Organisation for Economic Co-operation and Development (OECD).

The drive for regulatory convergence by key stakeholders such as the IAIS requires industry bodies, including WFII and the FIA, to work together towards building sustainability, trust and confidence within the intermediated insurance sector.

“Overall there is a strong sense of optimism for the future of the insurance intermediary,” says Van der Merwe. “Delegates agreed that intermediaries add value to the global insurance economy and that the intermediated market is stable.”

However, there is also a strong sense that the environment is changing and that the role of the intermediary should evolve to keep pace.

“The feeling at the conference was that the intermediary sector has to take ownership of its own future,” says Van der Merwe. “We need to consider both the anticipated regulatory landscape – driven primarily through the protection of the interests of individual consumers and small businesses – and the technological, socio-economic and environmental changes influencing the consumers of insurance products and services.

“These are not unfamiliar imperatives to us. Brokers across the world face the same challenges that we do here at home – and so getting together to talk about our common issues and share ideas was hugely beneficial for us.”

Issues covered included:  

  • Digitalisation
  • Development of intermediated businesses across all sectors of the economy
  • Understanding the economic impact of risks and providing guidance to consumers in respect of risk prevention and mitigation   
  • Regulation (there is consensus that our industry is over-regulated and under-enforced)
  • Compliance (the overwhelming majority of participants believe compliance promotes trust and confidence in business)
  • Recruiting and retaining key staff

Liberalisation, governance and catastrophic risks were considered the least important issues facing intermediaries around the world, while healthcare was mooted as a growing market for intermediaries.

One issue that we have on our radar in South Africa that doesn’t appear on the international agenda is that of remuneration.

“Most participants said there was no discussion or proposed regulation regarding intermediary remuneration levels,” says Van der Merwe. “Given that this is a current discussion point being mooted by our regulators, it is not inconceivable that this aspect could be raised at an international level. It is in our interests to monitor whether this occurs.”

There was also a general discussion on the importance of industry bodies like the FIA, as well as the common issues facing such bodies, including membership value and member apathy.

“We realised at the conference that we in South Africa are not unique or alone in the world,” says Van der Merwe. “There are many lessons we can learn and experiences we can share to promote the intermediated market, both at home and abroad. Our participation in Lisbon confirmed the importance of our association with the WFII and continued engagement with international regulators on behalf of our members.

“We will continue to keep members informed of the latest global trends through our regular email communications, as well as on our blog and via the FIA Insight magazine.”

 

Subscriber Terms and Conditions

  1. APPLICATION OF TERMS
    • These terms and conditions (“Subscriber Terms”) apply to the subscription by any qualifying member of the South African Underwriting Managers Association NPC (“SAUMA”) to the services and benefits offered by FIA Services (Pty) Ltd (“FIA Services”) under the SAUMA affiliation arrangement (“Subscription”).

  2. NATURE OF SUBSCRIPTION
    • A Subscription under this arrangement:
      • does not constitute membership of FIA NPC;
      • does not confer any voting rights or governance participation in FIA NPC; and
      • is governed solely by the contractual relationship between the Subscriber and FIA Services.

  1. ELIGIBILITY
    • To qualify for the Subscription, the applicant must, at the time of application, be a current paid-up member of SAUMA.
    • FIA Services will verify the applicant’s SAUMA membership status with SAUMA prior to activation, and may re-verify such status periodically.
    • If a Subscriber ceases to be a paid-up member of SAUMA, the Subscription will correspondingly be terminated.
    • Applicants are required to authorise FIA Services to confirm their SAUMA membership status with SAUMA as part of the application process.

  1. SERVICES
    • The Subscription entitles the Subscriber to the following benefits:
      • Complimentary access to the FIA CPD Platform;
      • Complimentary access to the FIA Insight Magazine (digital edition);
      • Advertising opportunities on FIA platforms at a discounted rate of 15% (fifteen percent) off the prevailing published rates; and
      • Invitations to attend FIA Technical Webinars annually.
    • FIA Services reserves the right to update, vary or substitute the Services from time to time, provided that the overall value and nature of the benefits remain materially the same.

  1. FEES AND PAYMENT
    • The monthly subscription fee is R260.00 (two hundred and sixty rand) for up to seven registered individuals (Key Individuals and Representatives), and R36.00 (thirty-six rand) per additional registered individual thereafter, excluding VAT.
    • The Subscriber shall provide FIA Services with the required details of each individual to be registered under the Subscription for the purposes of activation and billing.
    • All fees are exclusive of VAT, which shall be charged at the prevailing statutory rate.
    • Subscription fees are reviewed annually in March and may be adjusted with effect from 1 April.
    • Any changes to the Subscription, including but not limited to the number of Representatives and Key Individuals registered under the Subscription, may only be effected once annually during the annual review period in March of each year, with such changes taking effect from 1 April.
    • Subscription fees shall be billed monthly in arrears, unless the Subscriber elects an annual billing cycle at the time of application.
    • The Subscriber shall ensure that all billing information (including contact details, authorised signatories and bank account details) is kept accurate and up to date.
    • Non-payment of subscription fees may result in suspension of access to the Services until such fees are brought up to date.
    • The Subscriber acknowledges and agrees that all subscription fees payable under these Subscriber Terms may be collected by way of debit order, which shall be processed by the holding company, FIA NPC (The Financial Intermediary Association of South Africa), on behalf of FIA Services. Payment to FIA NPC shall be deemed to constitute valid and sufficient discharge of the Subscriber’s payment obligations to FIA Services under these Subscriber Terms.

  1. ONBOARDING
    • Onboarding will be conducted as a Subscription with FIA Services under the SAUMA affiliation arrangement.
    • Onboarding will not confer FIA NPC membership status or any associated rights.
    • Onboarding is conditional on confirmation of the Subscriber’s current SAUMA membership at the time of application

  1. DATA PROTECTION
    • FIA Services will process all personal information in accordance with the Protection of Personal Information Act 4 of 2013 (POPIA) as set out in our POPIA policies.
    • By subscribing, the Subscriber authorises FIA Services to confirm their SAUMA membership status with SAUMA and to process personal information for the purposes of fulfilling the Subscription.

  1. TERMINATION
    • The Subscriber may terminate the Subscription by giving FIA Services one calendar month’s written notice.
    • FIA Services may terminate the Subscription on one calendar month’s written notice, or immediately if the Subscriber breaches these Subscriber Terms and fails to remedy such breach within 14 (fourteen) days of receiving written notice.
    • Termination of the SAUMA–FIA Services affiliation agreement shall not automatically terminate these Subscriber Terms.
    • Termination by the Subscriber shall not relieve the Subscriber of liability for any subscription fees accrued up to the effective date of termination.
    • FIA Services may suspend or terminate the Subscription with immediate effect in the event of non-payment of fees by the Subscriber.

  1. GENERAL
    • These Subscriber Terms are governed by the laws of the Republic of South Africa.
    • Any disputes arising under these Subscriber Terms shall be dealt with in accordance with the dispute resolution provisions contained in the FIA NPC membership terms and conditions, as modified to reflect that the contractual relationship is with FIA Services.
    • Any notices required under these Subscriber Terms may be validly delivered by email to the addresses provided in the Subscriber’s application form, and such notices shall be deemed received on the day of transmission if sent during business hours.
    • The Subscriber may not assign, cede or transfer any of its rights or obligations under these Subscriber Terms without the prior written consent of FIA Services.
    • No variation of these Subscriber Terms shall be of any force or effect unless reduced to writing and signed by both FIA Services and the Subscriber.