FIA responds to concerns raised re proposed LUASA merger

In response to recent concerns raised regarding the proposed merger between the FIA and LUASA, I would like to re-iterate the collective and positive effects of the proposed LUASA and FIA merger, and clarify certain issues that have come to our attention.

The first issue regards individual life brokers themselves, and the FIA’s understanding and knowledge of the life industry. I would like to reiterate that the majority of FIA members are individuals (independents) operating in the short-term, employee benefits, healthcare and life markets. Our corporate members are also actively involved in all of these disciplines. As such the life industry has been one of our core focus areas since inception, with the FIA having national standing committees effectively looking after interests of intermediaries in all disciplines in the insurance industry. We therefore do already support the needs of numerous life brokers – something that was already a priority even before this merger proposal was officially tabled – and will continue to do so in the future.

As to the question regarding the benefits of being a FIA member, LUASA members are already seeing some of these in terms of collective representation and having their views and opinions heard. The FIA is already working with very closely with LUASA – successfully representing LUASA in the recent PCoF debates on Section 14 transfers, the Insurance Draft Amendment Bill and represented Luasa on the fit and proper Industry Committees and Forums. We are also currently representing LUASA in discussions with National Treasury and the FSB in terms of finalising sub-regulation in long-, short term and Health care environment. There can therefore be no question as to the value of pooling our collective expertise and membership to create one voice that actively represents our industry.

Regarding the issue of privileges and benefits of belonging to the FIA, our current pool of 15 000 members will attest to these. Should the proposed merger go ahead, LUASA members can look forward to joining an association that exists to serve its members and promote their interests. Not only will they benefit from active representation within the financial services industry, the financial services regulator and other organs of government, but will also be provided with information and guidance regarding issues they face in their industry, as well as the requisite support needed in delivering the very best products and services to their clients.

I would like to assure all concerned members that the proposal has come as a result of extensive consultation between the FIA and LUASA – the earliest of these discussions dating as far back as 2006. Already then there were clear similarities and synergies evident between our organisations. The merger is thus seen as the ideal opportunity to harness these and use them to further the interests of our members.

We appeal to all members to set aside all emotions and vote for the future of the intermediary in the insurance industry. Personal differences should not override the logic in our attempt to unify the intermediaries and create one voice and respected structure that meets all intermediaries’ – whether they be short-term or life brokers – needs.

In conclusion, I would like to thank all members who have raised these legitimate concerns, giving me the opportunity to address them and invite parties who require further information to contact myself so that they can be dealt with.

I would also like to thank those many members of both associations who have seen the overwhelming potential and value of this merger – and expressed their support for it. The FIA will remain committed to serving and furthering the interests of all intermediaries both before and after the 9 July 2008.

Justus van Pletzen
CEO

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