Santam launches black broker development initiative

Santam, has announced the launch of a new initiative to support black brokers and to boost the number of black brokers in the industry, as part of its ongoing attempts to influence transformation within the sector.

The initiative will focus on three distinct broker groups: start-up brokers, novice brokers and advanced brokers. Start-up brokers include participants with five or more years experience in the short-term insurance industry who are keen to start their own brokerages. Novice brokers are existing brokers who sell life assurance and/or investment products and who are interested in expanding their business in the short-term market. Advanced brokers are established brokers who already sell short-term insurance but who are keen to expand their book.

Quinten Matthew (pictured right), Head of Broker Services at Santam, explains that the nature of assistance to be provided by Santam will vary from group to group. “We will provide development facilities, training and guidance, as well as effective coaching and mentoring to ensure that black brokers are able to develop at their own speed. Ultimately, our intention is to ensure that they become fully-fledged independent brokers who are capable of participating effectively in the short-term insurance industry,” he says.

Acknowledging that the industry has historically been dominated by white individuals, Matthews notes that an increase in the number of black brokers, including female black brokers, is not only essential in terms of moral and legal requirements, including the provisions of the Financial Service Charter, but an important means of growing the emerging market for short-term insurance products.

He says that the project is only one of Santam’s enterprise development initiatives and that the company will actively seek the support of government and industry, including existing brokers, in order to ensure its success.

“To ensure the sustainability of this initiative, the project will have a long-term focus. It will be implemented over the next five years, with a pilot phase commencing in March. Upon completion of the pilot in June 2008, a comprehensive roll-out plan will be determined,” says Matthew.

“The plan is to have provided assistance and support to approximately 500 black brokers by the year 2012. Santam is fully committed to the successful implementation of this project as part of its transformation efforts and will continue to seek growth opportunities for black participants in the industry. We are hopeful that the project will gather sufficient momentum in order to encourage many more black brokers into the industry,” he concludes.