South African Insurance Association

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From the Desk of the Chief Executive - SAIA Bulletin June 2018

We are facing the second half of the year and it is exciting to see how much has been achieved thus far. There has been a lot of work put in by SAIA and the Board in the last six months to ensure the sustainability of our industry. We have continued to collaborate extensively with external bodies in business and in government to achieve industry objectives as determined by the Board.

The Nedlac Financial Sector Transformation Workshop was held at the CSIR on 5 and 6 April 2018 and there was an agreement to further engage within this Nedlac framework to reach a consensus in preparation for the Financial Sector Summit. This is being done through our four Working Groups, made up of SAIA and its Board members as well as other senior member representatives, each meeting weekly from 09h00 to 16h00.

All teams have made remarkable progress within their respective Working Groups in terms of reaching agreements on some of the proposals made in the Standing Committee on Finance (SCOF) and the Portfolio Committee on Trade and Industry 1st Report on the Transformation of the Financial Sector. However, some areas still need to be ironed out and agreed upon.

At a meeting held on 7 June 2018, where the proposed inclusion of short-term insurers as Accountable Institutions in the FIC Act was discussed, both the Financial Intelligence Centre (FIC) and the Prudential Authority (PA) agreed that together with SAIA and the FIA, we will follow an agreed process to assess the risks in terms of money laundering and terrorism financing activities related to the short-term insurance business before making the final decision to include our sub-sector in the ambit of FICA.

The FIC and PA confirmed that the short-term insurance industry, including insurers, intermediaries and underwriting managers will therefore be exempted as Accountable Institutions as an interim arrangement pending the outcome of the risk assessment to determine the vulnerabilities in the short-term insurance industry to be undertaken by a joint Task Team, consisting of SAIA, the FIA, PA and FIC.

The SAIA Board has approved a proposal by the SAIA Nomination Committee to add an additional membership group, to the current four groups A, B, C and D in the SAIA Board Structure, called state owned companies or Group E that will have three positions on the Board, and an additional Board position in the small companies’ group, Group C. This is in line with SAIA’s transformational aspirations of including more small and state owned entities in the SAIA Board with a view to advance both the transformation and diversity needs of the Board.

In a bid to improve communication with our members, we requested all member companies to identify a SAIA Champion within its ranks. This must be someone with a level of seniority who will effectively channel information between SAIA and our member company. The SAIA Champion will not only act as a contact point, but also act as a dual ambassador for both the industry and SAIA. We have received some responses from some members but are yet to receive responses from the rest.

Please do take this as a reminder to contact our Corporate Affairs Department or send your SAIA Champion nomination to  as a matter of urgency.