PARLIAMENT BRIEFING 15 SEPTEMBER 2009

15 September 2009

OBJECTIVES

•Background to Inseta

•Achievements towards DoL targets /Transformation

•Training Layoffs

•Closure

Background: Inseta Vision

INSETA - what it stands for

“Working today for a skilled tomorrow”

Our Vision:

“Inseta promotes and enables quality skills development through funding education and training in South Africa to meet national skills agenda and contributes to transformation in the sector”

Size and scope of the insurance sector

The insurance sector forms part of a large and rapidly growing financial business services sector in SA

The insurance sector covers the following sub sectors. WSP data

Subsector organisations employees

N % N %

Unit trusts 5 1.3% 54 0.04%

Risk management 6 1.6% 878 0.64%

Insurance and pension fund 36 9.7% 29567 21.57%

Life Insurance 47 12.6% 28636 20.89%

Pension Funds 10 2.7% 3139 2.29%

Healthcare Benefits Administration 47 12.6% 14368 10.48%

Short term insurance 131 35.1% 47313 34.50%

Funeral Insurance 13 3.5% 7000 5.11%

Reinsurance 11 2.9% 992 0.72%

Activities auxiliary to insurance 67 18% 5156 3.76%

Total 373 100 137103 100

Educational Profile of the Insurance Sector

EMPLOYMENT GROWTH WITHIN THE INSURANCE SECTOR

0%

20%

40%

60%

80%

100%

120%

2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008

White

Black

A. Employment growth over a five year period has revealed a steady growth in black employment

B. There has been a higher employment growth of black females as opposed to white females

C. Employment of disable people

EMPLOYMENT GROWTH WITHIN THE INSURANCE SECTOR

Fin Year

Black White

Disabled

Total

M F M F Black White

2001/2002 22.95% 26.01% 19.64% 31.40% 0.00% 49% 51.04%

2002/2003 21.20% 25.81% 21.79% 31.20% 0.51% 47% 52.99%

2003/2004 22.74% 28.04% 19.58% 29.64% 0.45% 51% 49.22%

2004/2005 23.38% 28.14% 19.91% 28.56% 0.24% 52% 48.47%

2005/2006 25.33% 30.09% 18.10% 26.47% 0.32% 55% 44.58%

2006/2007 26.06% 31.51% 18.19% 24.24% 0.32% 58% 42.43%

2007/2008 26.10% 37.21% 13.92% 22.77% 0.31% 63% 36.69%

EMPLOYMENT GROWTH WITHIN THE INSURANCE SECTORG

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10

20

30

40

50

60

A. More than half of the workers in the Sector lived in Gauteng

B. Other provinces accommodated only small components of the Sector – mostly brokerages

C. More than half of the employees in the Sector are women

Insurance Sector Equity Profile 2004 - 2008

Equity Profile of the Sector

NUMBER OF BEE PROVIDERS THAT ENCOMPASS VARIOUS TRADECOMMODITIES

0

10

20

30

40HR & ADMIN

IT

EQUIPMENT

MARKETING

MEDIA/PRINTING

A. IT remains one of our challenge areas in terms of operational requirements

B. HR and administrative commodities are well dispersed amongst BEE Providers

C. Inseta use of BEE Providers within the marketing industry is well maintained

ABET

Year 6

Year 7

Year 8

1000

1403

847

Total no. of workers for the sector to enter ABET Levels 1-4

The number of workers that enrolled for ABET levels has been the highest between Year 7 and 8 depicting the increased awareness of ABET training within the working environment.

Year 10 – Programme to train 800 ABET

PROMOTION OF TRANSFORMATION AND CONFIDENCE IN THE FINANCIALSECTOR THROUGH INSETA INTERVENTIONS AND PROJECTS

INSETA has promoted transformation through some of the following interventions and projects:

FAIS Interventions – In 2004 over 20 000 brokers received their initial credits 30/60 creditsWIN Project – Approximately 77 women have graduated between 2004 and 2006Black Brokers Empowerment – Approximately 50 brokers have been empowered to become training providersTraining of Black Lecturers – Approximately 20 lecturers from UWC have been trained Bursaries and Vouchers

THE QUANTIFIABLE CONTRIBUTION THAT INSETA HAS MADE TO THE POOL OF INTELLECTUAL CAPITAL IN THE INSURANCE SECTOR

ISOE

►Year 6

University of the Western Cape – R500,000.00University of Cape Town – R500,000.00

►Year 7

Umfolozi College – R500,000.00Nelson Mandela Metropolitan University – R500,000.00

►Year 8

Nelson Mandela Metropolitan University – R500,000.00Year 9Durban University of Technology, AUSD and Intec

TOTAL FINANCIAL OUTLAY BY INSETA IN RELATION TO LEARNERSHIPS, BURSARIES AND VOUCHERS OVER THE PAST FIVE YEARS

Total Mandatory Grants paid since 2001

Scheme Year GRANT A GRANT B GRANT C GRANT D Grand Total

2000 6,611,141.02 4,388,804.71 8,502,715.53 1,904,400.32 21,407,061.58

2001 13,546,265.20 42,858,800.69     56,405,065.89

2002 14,703,904.47 43,116,780.56     57,820,685.03

2003 16,735,091.88 49,321,645.02     66,056,736.90

2004 18,867,302.49 56,506,317.14     75,373,619.63

2005 73,455,508.45       73,455,508.45

2006 81,967,125.75       81,967,125.75

2007 48,886,752.44       48,886,752.44

  274,773,091.70 196,192,348.12 8,502,715.53 1,904,400.32 481,372,555.67

LEARNERSHIPS

Learnership funding to the value R 19 ,5 mil approved

Learnerships targets were exceeded – well received by the sector

Inseta exceeded its disability targets by 299% through learnerships77% of disabled learners were offered permanent employment after completion

Sector geared up to accommodate disabled learners

CHALLENGE – Intellectually disabled learnersSpecial project for Year 10

Total Bursaries Paid

Learnerships 2006/2007 2007/2008 2008/9 Total

310.4790.006 Bursary Project   6,029,756.10 8,476,488.11 R 5, 091, 000 19,597,244.21

310.4795.011 Bursaries (Top up I&II)   255,700.00   255,700.00

19,852,944.21

•MANDATORY GRANTS YEAR 9

• 468 levy payers received mandatory grants•Payout percentage 88%•792 SDFs are registered with Inseta across 9 provinces

ETQA Year 9

•Inseta was reaccredited as a ETQA with SAQA. Minimum required to be reaccredited is 100%•1962 learners achieved full qualifications after verification•2,240 unit standards through short skills programmes after verification•175 assessors and 54 moderators approved•Systems support training to assist providers• Challenges backlogs - eradicated

Corporate Governance

•9 years of unqualified audits

•Governance issues were rapidly dealt with

•Best Practices in policy environment

•Risk Assessment Framework regularly reviewed enterprise wide management of risk

•Investments – short term fixed deposits with the big 4 SA banks – not more than 40% in 1 institution

Financial Management

•Levy income resilient for Year 9 despite global conditions

•14% increase in levies

•Through close management of spending ended the year with an admin surplus of R2.5mil

•R126. 2 million was allocated to Discretionary Projects

•Challenges – process improvements to increase spend

Training Layoffs

•Research report commissioned to provide intelligence on the sector

•Employment equity slow down

•No layoffs planned for the short term

•Bursary Funding proposed to fund layoffs which may arise

•Working closely with CCMA and other role players

•Emphasis on speed time is of essence

•Quality training for employability

•Increased spend on projects for employability

•Accelerated delivery

THANK YOU