SA insurance sector needs to support 2012 budget in tackling job creation and unemployed youth challenges

27 February 2012: In order to tackle South Africa’s key job creation and youth unemployment challenges, as outlined in the 2012 Budget Speech, more needs to be done by prominent insurance providers to assist with skills development in the country’s fast-g

This is according to Lion of Africa Insurance CEO, Adam Samie, who is calling on all insurance industry leaders to assist in meeting one of the key National Development Plan objectives: improving the functioning of the labour market, particularly to help young people gain access to work.

“In his budget address, Finance Minister Gordhan outlined one of the key objectives of South Africa’s economic growth plan to 2030 as ‘improvements in further education and skills development’ and the insurance sector can definitely play a key role in the latter.

“I was also heartened by Finance Minister Gordhan’s mention that the infrastructure skills development grant supported 150 graduate interns in engineering in 2011/12 and that this would be extended to a further 43 municipalities in the period ahead.

“The insurance sector is in a position not to rely on grants and urgently needs to review its approach to creating accessible in-house training programmes, not only to meet key transformation goals, but also to address the massive skills shortage that exists in the short-term insurance space,” says Samie.

He says that many insurers currently bemoan the standard of education and graduates entering the workplace, but do very little to improve skills internally. “Companies should take a lot more responsibility by developing and running in-house training and education programmes in conjunction with Sector Education and Training Authorities, at both matriculant and graduate levels.”

Lion of Africa Insurance currently runs in-house programmes that provide learners with structured, workplace-based learnings, consisting of a theoretical component with The Workers Academy of Insurance (an accredited INSETA provider), as well as providing practical training in underwriting, finance and claims. “In 2011 approximately 15% of our workforce was made up of programme learners and graduates and we aim to build on this figure in 2012.”

Samie says that the Insurance Institute of South Africa can also play a more activist role in educating and informing insurance industry players about key transformation targets and available programmes.

“Skills development goes hand in hand with transformation, which is crucial for the evolution of South Africa’s financial services sector. As a Level 1 B-BBEE operator we are at the centre of the transformation debate and understand the importance of skills development programmes in creating economic opportunities for a greater number of South Africans.”

He adds that true empowerment, fostered by skills development, will also aid South Africa’s market share in Africa, particularly in the short-term insurance sector, which while small in global terms, is the largest segment by far on the continent.

“Transformation in the short-term insurance sector is not about mere compliance, but about contributing to the development of the previously disadvantaged people in our society to ensure South Africa can ultimately achieve its economic goals on a sustainable basis to the benefit of all,” concludes Samie.