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Charting the Course: state of the industry

01 August 2008 Gareth Stokes, FAnews

The IISA 2008 Annual Conference in June 2008 was titled "Charting the Course". The themes that emerged during the two days are all too familiar; the need for skills development and innovative leadership.

Some 400 representatives from 150 organisations were treated to a diverse selection of professional speakers who shared their views on what is required for the continued success of the insurance industry over the next decade.

The skills aspect was comprehensively addressed by several speakers, including INSETA chief executive, Mike Abel. He warned insurance companies against the knee-jerk response of cutting marketing and training during tough economic times. Talent, training and retention remain the 'holy grail' for success in the insurance industry. Abel said the industry would have to create 3 840 managers, 9 670 professionals, 11 600 clerical and admin and 3 010 sales workers over the next five years.

INSETA is already busy with the groundwork; "We need to go to the matriculation candidates and those in grade 10," said Abel. He told the audience that INSETA had sent insurance brochures to more than 500 000 students and that a number of internship and mentorship programmes have been implemented to increase the number of black graduates entering the industry.

The challenge to the country's insurers is to appoint innovative leaders to navigate turbulent market conditions. The best laid plans are easily wrecked by difficult trading conditions. Recent news that Mutual & Federal will have to make sizeable cuts in their total staffing complement is a case in point. A company needs a vibrant and skilled work force to ensure a competitive edge. A small staff complement might weather the tough times; but it will limit the company's ability to benefit from growth opportunities going forward. Other short-term companies might recognise the opportunity to use this tragedy to 'hire' some of the skilled insurance workers who will soon be without employment. Otherwise these people might be lost to the industry forever.

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