Presented by: Peter Atkinson i-fundi – Developments in the South African Insurance Industry 30 October 2015

Discussion Points General industry trends Key industry concerns Challenges facing the intermediary An update on the RE Examinations The future of CPD Various talent development initiatives and lessons learnt The emerging role of the para-planner How to make the new BBBEE codes work for you

General Industry Trends International expansion Mergers and consolidation New distribution models Increasing use of technology

Key Industry Concerns The South African environment, including political instability, unemployment, corruption, etc. The subdued macro-economic environment Regulatory changes including SAM, Twin Peaks, TCF Skills shortages and difficulties in attracting talent (and hence transformation) Backlog of technological development Threats from non-traditional competitors The aging intermediary market The low level of savings Disappointing progress with entry-level products and access

Some Specific Challenges Sustainability of motor insurance Climate change and implications Loss of investment business to asset management platforms Ongoing escalation in medical costs putting medical aids out of reach TCF

Intermediary Challenges Flood of regulatory changes requires extra time, effort and money Continuous product and system changes Mergers and consolidation FAIS Ombuds decisions The threat of the direct market The Retail Distribution Review

General acceptance that the first round was not well-handled Onerous ongoing fit and proper requirements a concern Examining bodies shrinking Rethinking of the “RE 2” rollout R E Exams and Fit and Proper

The Future of CPD Generally thought to be a good thing Currently being debated with key stakeholders Implementation depends on “RE 2” Key role of the two professional body supported by additional controlling bodies Main issues: costs, relevance, controls

Talent Development Initiatives Poor quality of new entrants Considerable effort and money being allocated on training, learnerships, etc. Some successes but limited Intermediary development particularly challenging

“Para-planners” Growing need for back office support Need to relieve front line “salespeople” Mainly in the long term arena but in a different from in short term Assists with the problem of integrating new staff into the business and career planning Helps to prevent staff “defecting”

BBBEE Financial Services Sector Charter being developed A challenge for medium-sized intermediaries Could help to change the landscape Could help to solve some staffing problems

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