ANNUAL REPORT – PARLIAMENT BRIEFING 14 OCTOBER 2010 Sandra Dunn - CEO

Contents of Presentation Opening Remarks by INSETA Chairman INSETA Purpose and Values INSETA delegation Report of the Auditor General 2009/2010 Budget Analysis 2009/2010 Financial and Operational viability Efficiency and Effectiveness Highlights 2009/2010 The way forward

PURPOSE AND VALUES INSETA Purpose is to grow the pool and quality of scarce and critical skills in the insurance sector, enhancing the sector and supporting the country’s transformation.

Reliable and Consistent INSETA VALUES Partner to enable others Form strategic partnerships Be an employer of Choice Consult and collaborate with stakeholders Deliver Quality Results for real impact -Value for investment Lead with Vision Develop contemporary solutions to lead the industry Listen, Learn, Influence, Shape Touch Lives Make a difference Leave an enduring legacy Inspire Trust Transparent Reliable and Consistent Accountable

INSETA DELEGATION Rama Govenden – Chairman (Business) Margie Naidoo – Deputy Chairperson (Labour) Jay Mngoma – Council (Business) Berna Botha – Finance Manager Tumi Peele – Learning Division Manager Sandra Dunn – CEO

REPORT OF THE AUDITOR GENERAL 2009/2010 2009/2010 -“Unqualified Audit” WITH Emphasis of Matter finding: Irregular expenditure finding (tender process not followed in the appointment of Regional Advisors) has highlighted the importance of ensuring that INSETA management abides by the Supply Chain Management Policy. INSETA remains committed to the principles of transparency, equal treatment, competitiveness, fairness, ethics and accountability.

REPORT OF THE AUDITOR GENERAL 2009/2010 FINDINGS Predetermined Objectives - Reported indicators not reliable as inadequate supporting information provided Non adherence to legislation No effective internal audit function

BUDGET ANALYSIS 2009/2010 Levy income resilient despite global conditions 8% increase in levies received Through close management of spending INSETA ended the year with an admin surplus of R 3,4 million. R107 million was allocated to Discretionary Projects in year 10 Mandatory grant payout – 91%

FINANCIAL AND OPERATIONAL VIABILITY Committed and involved Council with a Strong Focus on Governance Fully Resourced Organisation that will deliver to both National and Sector Strategies. The Financial Projections for the next three years are positive and sustainable. (Levy income resilient despite global conditions) Proven Track Record in delivering on Core Mandate

EFFICIENCY AND EFFECTIVENESS Operational delivery within 10% administration budget Successfully implemented the NSDS with NSDS I and II targets substantively met or exceeded Unqualified audit reports Strong Focus on Governance Projects support NSDS and sector skills needs Industry stakeholders support the strategies that the INSETA is pursuing to enhance skills development in the sector An agile and responsive Seta that is supported by the Insurance Sector

HIGHLIGHTS FROM ANNUAL REPORT 2009/10 INSETA initiated the first pilot articulation project between Further Education and Training Colleges (FETs) and universities (HETs) in association with the University of Western Cape. The purpose of the project is to enable employees who complete a Diploma in Wealth Creation to advance to a second year BCom diploma – this type of offering a first for our sector INSETA partnered with the South African Actuaries Development Programme in a bid to address challenges faced by the acute shortage of black actuarial skills in South Africa Introduction of a pilot disability programme aimed at raising the profile of workers who are making remarkable differences in the insurance sector as well as organisations supporting the advancement of people with disabilities INSETA is meeting most of its targets in terms of delivery against the National Skills Development Strategy From year 6 to 10 54 121 learners have successfully achieved learnerships, internships, bursary programmes and skills programmes 11

CHALLENGES Sustainability of New Venture Creations Adult Basic Education and Training (ABET) Employment of unemployed youth

INSETA FOCUS GOING FORWARD Accelerating and enabling regulation compliance Management and leadership development Specialist skills (actuarial and underwriting) - shortage of black actuarial skills continued focus Partnership and joint ventures where appropriate Capacity Building of providers with specific focus on Further Education and Training Colleges to enable the Wealth Management Project expansion (FET/HET articulation) Continuation of current projects that support NSDS and sector skills strategies Greater emphasis on operational efficiency and effectiveness Delivery in all nine provinces and in rural and remote areas

THE WAY FORWARD Proposed SETA Landscape: Announcement by the Minister is awaited Focus on 5 Strategic Pillars – Youth Development, Small and Micro Enterprise Development, Research & Benchmarking, Scarce & Critical Skills and Social Development Programmes & project proposals submitted to Council for approval will ensure that the needs of the sector and the NSDS III imperatives are met For the next three years INSETA will have four broad deliverables: Delivering on our core mandate Making INSETA a great place to work Enabling transformation in the sector Becoming the sector’s partner of choice for training, development & research

THANK YOU