A collective voice shouts the loudest
Over the past few years it is becoming increasingly apparent that the transformation issue is an issue that the financial services industry is definitely addressing.
While traditionally a male dominated industry, strong female leaders are now taking over the helms of major insurers and industry bodies in the hope that under their guidance, the companies would grow from strength to strength.
FAnews spoke with Thokozile Mahlangu, recently appointed CEO Designate of the Insurance Institute of South Africa (IISA), to find out her vision for the Institute.
Encouraging skills development
Apart from the transformation issue, the severe skills shortage that the industry is facing is a matter of grave concern. The broker force is getting older and there are very few young brokers coming into the industry.
“My vision is to elevate the insurance profession and revive the role of the IISA to be the central organisation for the promotion and development of insurance skills as well as facilitating transformation,” says Mahlangu.
She adds that this will be achieved through providing platforms for insurance skills development, improving the awareness of insurance as a profession, promoting stakeholder inclusivity, creating tangible impact and transformation for the industry and our country, and ensuring good corporate governance.
More attention needed
While the industry has undoubtedly made significant strides in addressing the transformation issue, Mahlangu feel that more attention needs to be paid to addressing this.
She points out that transformation is the operation of changing something from one form into another, it is beyond race and gender; it is creating opportunities for inclusivity within the insurance value chain and ultimately the economy.
“Transformation requires leaders that empowers employees and brokers, it entails transforming the products we provide to clients to meet their individual needs; and of particular concern are those who are currently excluded from the insurance and financial services industry as a whole. It also entails doing business with a purpose and ensuring there is shared value. Furthermore it entails stakeholder inclusivity,” says Mahlangu.
Moving forward
Innovation is often described as the establishment of a set of systems and processes that allows an organisation to move forward and remain relevant within a changing environment.
With this in mind, we need to decide whether the insurance industry is innovative enough to address the current challenges it faces.
“I do not believe the industry is innovative enough, the low penetration into lower income earning markets is a clear indication of this. Innovation requires nurturing innovative skills and allowing free thinking and adjusting the traditional ways of doing business; we need to work on this,” says Mahlangu.
Actions going forward
As pointed out, the challenges that the industry faces is significant in nature. However, they are not insurmountable. With certain interventions, we can overcome them.
The IISA, as an industry body, faces similar challenges to the industry. So how does Mahlangu plan to address these challenges?
“There are a number of ways in which these challenges can be addressed. Firstly, there needs to be an increase in professional members, there needs to be an elevation of insurance as a profession, and there needs to be enabling platforms for insurance education. Within ten years, I would like to have re-established the College of Insurance as well as grow the professional members of the institute to be a true representation of the number of people in the industry,” says Mahlangu.
Editor’s Thoughts:
In order for opportunities for inclusivity within the insurance value chain, and ultimately the economy, there needs to be a collective voice and drive towards addressing an issue which is beyond race and gender. Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts [email protected].
Comments
Exactly the problem when one think of a new market. Looking around in traffic it amazes me where the money come from, for all the fancy cars and the faces and reg. plates represent the demographics of our SA. Someone earns the money, get the finance and have to insure these assets. Who but the direct writers pick them up? Not the traditional old timers? Report Abuse
The bottom end of the market is where lapses abound because people don't have the disposable income. Consequently brokers like myself avoid it - period. Report Abuse