Our regulatory impact over the past 15 years

See how far we’ve come:

When the new Binder Regulations were negotiated, we played a part in securing binder holder admin income streams for insurance brokers.

We negotiated with SASRIA to increase broker remuneration from 7.5% to 11%.

With the assistance of SAIA, we enabled the supply of mandated client information from direct writers to our short term members.

Our intervention saw the Minister of Health increase fees for medical scheme brokers, and we continue to fight for inflation-linked increases.

Medical scheme brokers and consumers benefited from our input on the demarcation debate, which to ensure the continuation of gap covers, top-up insurance and other alternative covers.

Our continuous pressure resulted in the Ombudsman for Short Term Insurance publishing complaints statistics for the first time in the 2012/13 Annual Report.

We achieved concessions for our members in the Regulatory Examination process. Intermediaries were able to write in Afrikaans.

The suitability of RE questions and the pass mark were reviewed, and more reasonable time frames were given for RE Level 2.

Our input also saw the implementation of Continuous Professional Development being revised in content and implementation.

Based on the FIA's discussions with the FSCA, the FSCA recognised that the inability to pay premiums as a result of the COVID-19 pandemic, would have a negative impact on the income of intermediaries. As a result of this intervention, insurers may still pay brokers their full commission where premium relief is offered.

We have over the last financial year provided 105 FREE face-to-face CPD hours to 2115 members across the country.

We developed content on the importance of Financial Advice and provided it to the ASISA Foundation to incorporate into their existing programmes.

INSETA Project – the FIA secured funding from INSETA for R3.6mil for CPD, COB, RE Training and exams, Skills Programs, Learnerships and Bursaries.

The FIA have actively engaged with the FSCA in respect of Premium Collection, and as a result of our submissions and facilitation of engagement with our members, the Regulator has a greater understanding of the complexity and variety of business models, to inform their future position.

The Employment Equity Amendment Bill 2020 - introduces enabling provisions for the setting of sector-specific employment equity targets. The FIA has made a detailed submission on behalf of members to highlight the challenges and risks as a result of the proposed targets as well as proposed solutions on how we can address the challenges.

Following extensive engagement by the FIA, National Treasury made proposals to reduce the levies that intermediaries will pay to the FSCA in terms of the Financial Sector and Deposit Insurance Levies Bill. Estimated savings are between R8m – R10m per annum for the intermediary market in general.

Council for Medical Schemes (CMS) / LCBO Commission: In January 2022, the CMS announced that the demarcation exemption period has been extended for a further two years – from April 2022 to end of March 2024. This saved members approximately R110m per annum. The FIA continues to engage on the working committees at the CMS dealing with the proposals relating to these products.

Industry Associations successfully lobby for the Non-Life insurers and intermediaries NOT to be included as accountable institutions under the FIC Act, saving the industry R100m plus in compliance costs. The FIA and other industry associations are now working with the FIC to increase awareness of current FIC obligations.

The FIA has engaged in the COFI Bill Task Team meetings through Business Unity South Africa (BUSA). We are pleased to report that most of the concerns and proposals raised by the FIA were taken into consideration in the final version of the COFI Bill.

Conduct of Business Returns - Omni-CBRs; The FIA is making a detailed submission to the FSCA in this regard. Our Legal and Compliance team have spent more than 40 hours on this submission alone. The cost and volume of work required by members to complete these returns cannot be under-estimated and members will be required to report QUARTERLY to the FSCA.

Employment Equity Amendment Bill (EEAB) Following meetings with the Department of Employment and Labour, the FIA engaged the services of Adv. Khumalo to prepare and represent the FIA in the parliamentary hearing process on the EEAB. The FIA alongside other associations have also provided input to the FSCA on our concerns with regards to the impact of non-compliance. Engagements remain ongoing.

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