1. PARLIAMENT BRIEFING 15 SEPTEMBER 2009

2. Achievements towards DoL targets /Transformation Training Layoffs
OBJECTIVES
Background to Inseta
Achievements towards DoL targets /Transformation
Training Layoffs
Closure

3. Background: Inseta Vision
INSETA - what it stands for
“Working today for a skilled tomorrow”
Our Vision:
“Inseta promotes and enables quality skills development through funding education and training in South Africa to meet national skills agenda and contributes to transformation in the sector”

4. Size and scope of the insurance sector
The insurance sector forms part of a large and rapidly growing financial business services sector in SA
The insurance sector covers the following sub sectors. WSP data
Subsector
organisations
employees N %
Unit trusts 5
1.3% 54
0.04%
Risk management 6
1.6%
878
0.64%
Insurance and pension fund 36
9.7%
29567
21.57%
Life Insurance 47
12.6%
28636
20.89%
Pension Funds 10
2.7%
3139
2.29%
Healthcare Benefits Administration
14368
10.48%
Short term insurance
131
35.1%
47313
34.50%
Funeral Insurance 13
3.5%
7000
5.11%
Reinsurance 11
2.9%
992
0.72%
Activities auxiliary to insurance 67
18%
5156
3.76%
Total
373
100
137103

5. Educational Profile of the Insurance Sector

6. EMPLOYMENT GROWTH WITHIN THE INSURANCE SECTOR
Employment growth over a five year period has revealed a steady growth in black employment
There has been a higher employment growth of black females as opposed to white females
Employment of disable people

7. EMPLOYMENT GROWTH WITHIN THE INSURANCE SECTOR
Fin Year
Black
White
Disabled
Total M F
2001/2002
22.95%
26.01%
19.64%
31.40%
0.00%
49%
51.04%
2002/2003
21.20%
25.81%
21.79%
31.20%
0.51%
47%
52.99%
2003/2004
22.74%
28.04%
19.58%
29.64%
0.45%
51%
49.22%
2004/2005
23.38%
28.14%
19.91%
28.56%
0.24%
52%
48.47%
2005/2006
25.33%
30.09%
18.10%
26.47%
0.32%
55%
44.58%
2006/2007
26.06%
31.51%
18.19%
24.24%
58%
42.43%
2007/2008
26.10%
37.21%
13.92%
22.77%
0.31%
63%
36.69%

8. EMPLOYMENT GROWTH WITHIN THE INSURANCE SECTOR
More than half of the workers in the Sector lived in Gauteng
Other provinces accommodated only small components of the Sector – mostly brokerages
More than half of the employees in the Sector are women

9. Insurance Sector Equity Profile 2004 - 2008

10. Equity Profile of the Sector

11. NUMBER OF BEE PROVIDERS THAT ENCOMPASS VARIOUS TRADE
COMMODITIES
IT remains one of our challenge areas in terms of operational requirements
HR and administrative commodities are well dispersed amongst BEE Providers
Inseta use of BEE Providers within the marketing industry is well maintained

12. ABET
The number of workers that enrolled for ABET levels has been the highest between Year 7 and 8 depicting the increased awareness of ABET training within the working environment.
Year 10 – Programme to train 800 ABET
Total no. of workers for the sector to enter ABET Levels 1-4

13. PROMOTION OF TRANSFORMATION AND CONFIDENCE IN THE FINANCIAL
SECTOR THROUGH INSETA INTERVENTIONS AND PROJECTS
INSETA has promoted transformation through some of the following interventions and projects:
FAIS Interventions – In 2004 over brokers received their initial credits 30/60 credits
WIN Project – Approximately 77 women have graduated between 2004 and 2006
Black Brokers Empowerment – Approximately 50 brokers have been empowered to become
training providers
Training of Black Lecturers – Approximately 20 lecturers from UWC have been trained
Bursaries and Vouchers

14. THE QUANTIFIABLE CONTRIBUTION THAT INSETA HAS MADE TO THE POOL OF
INTELLECTUAL CAPITAL IN THE INSURANCE SECTOR
ISOE
Year 6
University of the Western Cape – R500,000.00
University of Cape Town – R500,000.00
Year 7
Umfolozi College – R500,000.00
Nelson Mandela Metropolitan University – R500,000.00
Year 8
Year 9
Durban University of Technology, AUSD and Intec

15. TOTAL FINANCIAL OUTLAY BY INSETA IN RELATION TO LEARNERSHIPS,
BURSARIES AND VOUCHERS OVER THE PAST FIVE YEARS
Total Mandatory Grants paid since 2001
Scheme Year
GRANT A
GRANT B
GRANT C
GRANT D
Grand Total
2000
6,611,141.02
4,388,804.71
8,502,715.53
1,904,400.32
21,407,061.58
2001
13,546,265.20
42,858,800.69
56,405,065.89
2002
14,703,904.47
43,116,780.56
57,820,685.03
2003
16,735,091.88
49,321,645.02
66,056,736.90
2004
18,867,302.49
56,506,317.14
75,373,619.63
2005
73,455,508.45
2006
81,967,125.75
2007
48,886,752.44
274,773,091.70
196,192,348.12
481,372,555.67

16. Learnership funding to the value R 19 ,5 mil approved
LEARNERSHIPS
Learnership funding to the value R 19 ,5 mil approved
Learnerships targets were exceeded – well received by the sector
Inseta exceeded its disability targets by 299% through learnerships
77% of disabled learners were offered permanent employment after completion
Sector geared up to accommodate disabled learners
CHALLENGE – Intellectually disabled learners
Special project for Year 10

17. Total Bursaries Paid Learnerships 2006/2007 2007/2008 2008/9 Total
Bursary Project
6,029,756.10
8,476,488.11
R 5, 091, 000
19,597,244.21
Bursaries (Top up I&II)
255,700.00
19,852,944.21

18. 468 levy payers received mandatory grants Payout percentage 88%
MANDATORY GRANTS YEAR 9
468 levy payers received mandatory grants
Payout percentage 88%
792 SDFs are registered with Inseta across 9 provinces

19. Inseta was reaccredited as a ETQA with SAQA. Minimum required to be
ETQA Year 9
Inseta was reaccredited as a ETQA with SAQA. Minimum required to be
reaccredited is 100%
1962 learners achieved full qualifications after verification
2,240 unit standards through short skills programmes after verification
175 assessors and 54 moderators approved
Systems support training to assist providers
Challenges backlogs - eradicated

20. 9 years of unqualified audits
Corporate Governance
9 years of unqualified audits
Governance issues were rapidly dealt with
Best Practices in policy environment
Risk Assessment Framework regularly reviewed enterprise wide management of risk
Investments – short term fixed deposits with the big 4 SA banks – not more than 40% in 1 institution

21. Levy income resilient for Year 9 despite global conditions
Financial Management
Levy income resilient for Year 9 despite global conditions
14% increase in levies
Through close management of spending ended the year with an admin surplus of R2.5mil
R million was allocated to Discretionary Projects
Challenges – process improvements to increase spend

22. Research report commissioned to provide intelligence on the sector
Training Layoffs
Research report commissioned to provide intelligence on the sector
Employment equity slow down
No layoffs planned for the short term
Bursary Funding proposed to fund layoffs which may arise
Working closely with CCMA and other role players
Emphasis on speed time is of essence
Quality training for employability
Increased spend on projects for employability
Accelerated delivery

23. THANK YOU