South African Insurance Association

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

It is unbelievable that in six weeks most companies will begin to break for the December holidays! This year has brought us new challenges that we, as an association, and as well as the industry bravely faced and collaboratively navigated with our various stakeholders.

Mid-Term Budget Policy Statement
SAIA would like to welcome the new Minister of Finance, Mr Tito Mboweni who the president announced at the beginning of October 2019. On 24 October he delivered his Mid Term Budget Policy Statement (MTBPS) which was welcomed by several economists. However, South Africa is faced with several complex challenges that will require so much financial dexterity from the National Treasury Head. We wish him all the best!

Jobs and Investment Summits
Both the Jobs and the Investment Summits took place recently. We fully support the summits’ objectives of growing our economy while also creating jobs for the people of South Africa and believe that the industry has much to contribute to achieve these very important objectives.

Nedlac Financial Sector Summit
The Nedlac constituencies (Business, Labour, Government and Community) are preparing for the 2nd Nedlac Financial Sector Summit. The process is edging closer to an end with the constituencies currently considering Agreements and a Declaration to be adopted for sign-off in March 2019, the expected time during which the Summit will take place.

Transport Month
October is widely recognised as Transport Month and SAIA collaborated with several stakeholders in the Business for Road Safety (BRS) forum, an initiative formed by SAIA and other business associations in 2015 whose purpose was to collaborate and develop unified solutions to reduce road crashes and road fatalities in South Africa. As we approach the December holiday period, SAIA will continue with road safety campaigns on its digital platforms to influence driver behaviour on our roads.

The Premium Collection Future Landscape
The FSCA has expressed concern at the recent SAIA/FSCA/PA/SARB/National Treasury (NT) Quarterly Liaison meeting at the non-life industry’s lack of change in culture and approach to governance and outsourcing, including premium outsourcing. The FSCA and PA will be looking more closely at outsourcing, particularly the outsourcing of material functions which will be looked at by the PA.

The FSCA has requested on Friday, 26 October 2018 in a meeting with SAIA and the FIA that we consider what the future landscape for premium collection should look like especially from a governance and oversight point of view, and to provide a joint proposed way forward to present to the FSCA early in 2019. The FSCA emphasized that a continuance of the status quo will not be acceptable. Whilst we are awaiting the FSCA’s formal guidance on areas to look at, we have gained a good understanding of the issues to be addressed, and a workshop for SAIA members have been arranged for 2 November 2018. It is envisaged that SAIA and the FIA will follow their own processes urgently, followed by a joint process. The aim is to have a first draft joint proposal by mid-December 2018.

IUMI Conference 2018
I would like to thank our members, sponsors, all companies and professional individuals in the marine insurance space for having made the International Union of Marine Insurance (IUMI) 2018 Conference in Cape Town the outstanding success it was. A lot of information was shared with learnings in new areas and a deeper understanding of the new risks in the marine space was enabled during the conference. We thank IUMI for the confidence in SAIA to host this conference for the first time in Africa in 144 years.