Great news for the short term insurance industry
We have noticed a definite shift in focus among product providers, financial intermediaries and representative organisations as they gear up for the arrival of the Treating Customers Fairly (TCF) regime. South Africa’s leading short-term insurers deserve
Against this backdrop it is fitting that among the last short term insurance ‘newsflashes’ for 2012 is the announcement by the Insurance Institute of South Africa (IISA) that the South African Qualifications Authority (SAQA) has awarded it Professional Body status for the short term insurance industry. “Our recognition as a Professional Body enhances our individual professional members who now benefit from our ‘officially’ recognised designations of Licentiate (LIISA), Associate (AIISA) and Fellow (FIISA),” observes David Harpur, CEO of the IISA.
A long walk to professional status
What this means is that the IISA steps into the Professional Body ‘gap’ in the short term insurance space in much the same way as the Financial Planners Institute (FPI) serves the life and investments space. The recognition was a long time coming. SAQA was set up in terms of the National Qualifications Framework (NQF) Act 67 of 2008 and was charged with setting up a formal recognition process for Professional Bodies. The IISA was among 100-odd professional bodies that assisted SAQA with this task by participating in forums where formal recognition processes and criteria for professional bodies were thrashed out.
“Once the criteria were finally agreed upon any organisation that wanted to call itself a professional body had to apply and go through the process,” says Harpur. The IISA put in its application some months ago and has since been subjected to a strict audit of its business practices, professional standards and procedures and governance to ensure it meets the criteria. “We received a phone call on 28 November to say that we had been approved and are among the first 40 bodies in South Africa to be officially recognised as a professional body,” he says. “This recognition holds for the short-term insurance industry principally.
The qualifications that the IISA embraces for its designations are already registered on the national qualifications framework. If you study the IISA insurance programs at UNISA (for example) – and pass the qualification – you would qualify through UNISA and then apply to the IISA for a designation as either a licentiate, associate or fellow. These designations can now only be awarded by the IISA, a recognised professional body in the short term industry. “Whilst we have always awarded these designations in terms of our constitution, we now have an official government sanction and recognition that we have met all the criteria of a professional body – which elevates our standing in the eye of the industry and of students,” adds Harpur.
An enhancement to individual professional members
This news is a great note on which to conclude a successful 2012… It is another step in the IISA’s journey to achieving the long term goal of building World Class Education for a World Class Industry. “The award is confirmation of our status built over many years of serving the industry as a Professional Body,” says Harpur. “We will continue working in close contact with other Insurance Institutes throughout South Africa as well as with important industry bodies like SAIA, FIA, FPI, IRMSA, POA, SAUMA, FSB, INSETA and ILA”. The IISA will also continue to provide services to its professional members.
A shared understanding of professionalism
Harpur believes that this achievement underpins the joint action by the IISA, South African Insurance Association and the Financial Intermediaries Association through the Human Capital Development Project. “We have joined forces to put together a strategy for the short term industry that focuses on professionalism, qualifications and designations,” he concludes. “This will build up to the Hyde Park Accord, which will culminate in all CEOs of brokers, insurers and reinsurers signing a commitment to professionalism in the industry. The goal is for an overarching definition of a professional linked to a qualification and designation and endorsed by the CEOs of all the businesses operating in the market”.
It is hoped that SAQA’s registration of the designations of LIISA, AIISA and FIISA will assist in eventually having them endorsed by industry CEOs as a requirement for employment and career progression in the insurance industry.
Editor’s thoughts: The Financial Planners Institute (FPI) has been successful in furthering its Certified Financial Planner CFP® qualification as the ‘must have’ designation in the life and investments space. It seems logical that the short term industry would reap maximum benefit by throwing its collective weight behind a single professional body and designation set too. Would you welcome the adoption of a single Professional Body to handle designations in the short term industry? Please add your comment below, or send it to [email protected]
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