South African Insurance Association

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From the Desk of the Chief Executive- May 2018 Bulletin

The Nedlac Financial Sector Transformation Workshop took place on the 5th and 6th of April, 2018. It was well-attended by our senior executives including CEOs from our member companies. The SAIA delegation agreed that despite the fact that agreements were not yet reached and cemented, the two days spent at the workshop were time well spent. Listening to the issues and perceptions other constituencies have with regards to the Financial Sector first hand was indeed valuable.

The four initial commissions were turned into the following task teams through agreement reached by The Nedlac Financial Sector Summit Task Team following the Nedlac Transformation Workshop:

  • Market concentration and monopoly in relation to ownership and licensing
  • Support for emerging enterprises and black businesses through procurement and enterprise and supplier development
  • The role of DFIs and state owned financial institutions in the transformation of the financial sector
  • The role of the Financial Sector Charter Council and financial sector regulatory bodies

The Task Teams to take the negotiations and discussions forward in the build up to the Financial Sector Summit, the number of delegates, and other relevant arrangements in terms of the process to be followed, were agreed to by the Nedlac Financial Sector Summit Task Team. The build-up process is set to start during the week of 14 May 2018 and it is envisaged that the process will be completed by around 15 June. The initial proposed date for the Financial Sector Summit was 6 July 2018.

The SAIA, in collaboration with the Insurance Institute of South Africa (IISA), Insurance Institute of Gauteng (IIG) co-hosted a high level event where Ms Keiko Honda, Executive Vice President and Chief Executive Officer of the Multilateral Investment Guarantee Agency (MIGA), a member of The World Bank Group, delivered a keynote address focusing on MIGA’ strategy which includes their commitment to increase support for investment in most economies in Sub-Saharan Africa.

She presented her keynote address alongside the Director-General of the National Treasury, Mr. Dondo Mogajane, looking at the role of the insurance sector in unlocking growth and boosting shared prosperity in South Africa and Sub-Saharan Africa at the Gordons Institute of Business Studies (GIBS) auditorium on Friday the 4th of May, 2018.

The Financial Sector Conduct Authority (FSCA), aimed at replacing the Financial Services Board (FSB) and the Prudential Authority were both launched on 1 April, 2018. Finance Minister Nhlanhla Nene has set in motion processes to disband the FSB as well as unbundle the banking supervision department from the Reserve Bank. This marked the official launch of the ‘Twin Peaks regulatory system’, a model that was approved by Cabinet in 2011, whose objectives are “to create a safer financial sector that works effectively in the interests of all South Africans, by reducing potential threats to the financial system and providing better protection to financial customers”.

We realise that our members receive a lot of communication from the SAIA, especially in the form of circulars. For your convenience, and to ensure that you may not have missed a circular that could be of relevance to you, we will in future upload a SAIA Circular Digest on the SAIA website listing all the circulars sent to members during the past period.