FAIS Micro Insurance Presentation

PRESENTATION BY : JM MBELE

MICRO INSURANCE PRESENTATION
TOPICS TO BE DISCUSSED

• Definition of Micro Insurance
• Financial Services provider versus Financial Product Provider
• Retail Distribution Channel/s
• Compliance with your choice of a distribution Channel
• Governance

INTRODUCTION & DEFINITION
Where everyone fits in. (Inclusive Financial Sector).
Definition as taken from the Micro Insurance Policy Paper:
Microinsurance refers to insurance that is accessed by the low-income population, provided by a variety of different providers and is managed in accordance with generally accepted insurance practice. It forms part of the broader insurance market, distinguished by its particular focus on the low-income market, which translates into distinct means of product design and distribution Level of functionality:
Functioning at a level of Insurance Companies.

FINANCIAL SERVICES PROVIDER VERSUS A FINANCIAL PRODUCT PROVIDER/SUPPLIER FINANCIAL SERVICES PROVIDER(FSP):

• Render financial services (advice & intermediary services) on a financial product to the
  members of the public. The conduct/behavior of the agent is of importance
• Legislation to comply with: The FAIS Act
  FINANCIAL PRODUCT PROVIDER/SUPPLIER:
• Explain the activities
• Legislation to comply with: Insurance Act, Long Term Insurance Act and Short Term
  Insurance Act (Policyholder Protection Rules)

Retail Distribution Channels

• What is a distribution channel in insurance
• Who would you prefer to sell/market your product
• Tied Agent:
  someone who is paid by an insurance company to sell and give advice only on its financial product/s, not on those of its competitors.
• Independent Broker /Agent:
  An insurance agent that sells insurance policies provided by several different insurance companies rather than a single insurance company

DUE DILIGENCE & GOVERNANCE :
Tied Agents:

• In your FAIS Licence profile as natural or juristic representatives.
• Always check that they still meet their fit and proper requirements
• Update your rep register regularly
  Independent brokers:
• Check if they are authorised as FSP’s and authorised for the correct financial product.
• Website can assist or
• Apply to the FSCA to obtain a weekly data dump.
  Corporate Governance issues: (Effective Leadership) Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of a company. (Independent Board members, Ethical leadership, strategy development & oversight structures)

CONCLUSION
NEW NARRATIVE IN THE BOARD ROOM.
QUESTIONS & ANSWERS
THANK YOU