Insurance Companies in South Africa meet licensing requirements

Insurance companies in South Africa and brokers alike are mandated to take the Financial Services Board’s regulatory exams at the end of the year. The FSB requires all financial service providers to take the exam to meet the competency requirements of the FAIS act. According to the Insurance Institute of South Africa, any representative or key individual of a financial service provider must pass the exams, or he or she will be disbarred and no longer qualify to offer financial advice.

The regulatory exams test knowledge of the FAIS act, Board notices, FAIS General Code of Conduct and the responsibilities of role-players according to the act. The FSB requires a 65% mark to pass, which obviously requires a good understanding of the act.  Even experienced brokers and key players of insurance companies in South Africa may struggle with the exams as they test knowledge of procedures and conduct of businesses.

The exams are not a qualification, but rather licensing requirement, which should see less professional financial service providers leave the industry. The FSB has released preparatory guidelines for the exams, while the Insurance Institute of South Africa makes study materials available for those looking to work in the insurance industry. In fact, the Insurance Institute of South Africa was set up for just such a purpose.

About the Insurance Institute of South Africa

The IISA began in 1898 in Cape Town as an affiliate of the Chartered Insurance Institute of London to provide insurance technical learning materials for distance learning and examination. In 1966, the institute took a vote to become a South African body, thus instituting the IISA.

The primary goal of the Insurance Institute of South Africa is to develop members of the insurance industry by efficiently providing them with needed materials. The body also supervises the industry and members’ standards of professionalism. Overall, the IISA seeks to qualify insurance practitioners in whichever avenue of insurance they may be.

The funding for such provisions comes from member fees, support from the industry, contributions from annual conferences and the sale of training material. The body is governed by a board of directors made up from key players in the insurance industry such as Junior Ngulube from Munich Re, George Bishop of Alexander Forbes, Ronald M Gordan of AON and other organizations including the South African Insurance Association.