INSETA STRATEGIC PLAN - Amazon Web Services · INSETA STRATEGIC PLAN 2015/16 – 2019/20 15 November 2018 . Final Strategic Plan 2019/20 Version 8 Page 2 1 FOREWORD The INSETA strategy

Final Strategic Plan 2019/20 Version 8 Page 1

INSETA STRATEGIC PLAN

2015/16 – 2019/20

15 November 2018


1 FOREWORD

The INSETA strategy is closely aligned with the National Skills Development Strategy III and was developed to reflect government priorities and actions reflected in the Medium-term Strategic Framework (MTSF) for the period 2015 to 2020. The INSETA strategy also takes cognisance of the White Paper on the post schooling education and training system, the HRD Strategy and the National Development Plan. In addition the work of INSETA makes a contribution to reducing inequality, poverty and unemployment. The Board and Management reviewed the SETA’s performance over the five year period against the strategy set. Excellent progress has been made with INSETA achieving 96% of its targets in 2016/17 and 100% in 2017/18. While the strategy was quite challenging, INSETA has managed to achieve all its goals and targets in the last financial year. New approaches are underway to promote rural presence and increase public private partnerships with the TVET colleges and INSETA stakeholders. The INSETA strategy is revised and updated in line with the Framework for Managing Programme Performance Information issued by National Treasury in terms of the mandates set out in section 215 and 216 of the Constitution.

OFFICIAL SIGNOFF It is hereby certified that this Strategic Plan:

• Was developed by the Management of the Insurance Sector and Education and Training Authority (INSETA)

• Takes into account all the relevant policies, legislation and other mandates for which the INSETA is responsible

• Accurately reflects the strategic outcome-oriented goals and objectives which the INSETA will endeavour to achieve over the period covered by the plan.

Submitted by: Ms T. J Peele Signature: __________________ Acting Accounting Officer Approved by: Mr M.V. Mokgobinyane Signature: ___________________ Accounting Authority


CONTENTS ..... PAGE

Contents

1 FOREWORD ......................................................................................................... 2 2 ACRONYMS ......................................................................................................... 5 3 INTRODUCTION ................................................................................................... 6 4 PURPOSE OF THE STRATEGIC PLAN ............................................................... 6 5 KEY ASSUMPTIONS UNDERLYING THE STRATEGIC PLAN............................ 7 6 DEVELOPMENT OF THE STRATEGIC PLAN ..................................................... 7 7 KEY MANDATE AND FUNCTIONS OF THE INSETA .......................................... 9 8 LEGISLATIVE FRAMEWORK AND OTHER MANDATES WITHIN WHICH INSETA FUNCTIONS ......................................................................................................... 10 8.1 RELEVANT COURT RULINGS ............................................................................ 10 8.2 POLICY MANDATES ........................................................................................ 10 8.2.1 National Development Plan (NDP) 11 8.2.2 Human Resources Development Strategy for South Africa (HRDS-SA) 12 8.3 ALIGNMENT WITH NATIONAL STRATEGIES AND PLANS ........................... 12 8.3.1 Develop National Strategy to Tackle Skills Shortages 13 9 SITUATIONAL ANALYSIS.................................................................................... 14 9.1 INTRODUCTION ............................................................................................... 14

9.1.1 Long-Term Insurance 15 9.1.2 Short-Term Insurance 15 9.1.3 Collective Investments 15 9.2 TRANSFORMATION WITHIN THE INSURANCE SECTOR .............................. 16 9.2.1 MAJOR OFO OCCUPATIONAL GROUPINGS STRATIFIED BY RACE 9.3 DRIVERS OF CHANGE IN THE INSURANCE SECTOR .................................. 17 9.3.1 Key skills issues that are forecasted to impact the insurance sector is 18 10 THE PERFORMANCE ENVIRONMENT............................................................ 19 10.1 SECTOR PERFORMANCE ............................................................................... 20 10.2 IMPACT ASSESSMENT ................................................................................... 20 11 DEMAND FOR SERVICES................................................................................ 21 12 ORGANISATIONAL ENVIRONMENT ............................................................... 21 13 HUMAN RESOURCES ...................................................................................... 22 14 THE TABLE BELOW SETS OUT THE PROGRAMMES PER GOAL, TRENDS AND RESOURCE CONSIDERATIONS ..................................................................... 23 15 INSETA ORGANOGRAM .................................................................................. 25 16 STRATEGIC GOALS ........................................................................................ 26 16.1 OVERVIEW OF STRATEGIC GOALS OF INSETA ........................................... 26 16.1.1 SKILLS PRIORITIES IDENTIFIED THROUGH SECTORAL RESEARCH 26 17 ALIGNMENT OF STRATEGIC GOALS TO PRIORITY ACTIONS ................ 27 17.1 MEASURES TO SUPPORT NATIONAL STRATEGIES AND PLANS .............. 29 17.1.1 Top scarce skills occupations for 2019/2020 32 18 INSETAS STRATEGIC OUTCOME ORIENTATED GOALS ................................. 34 18.1 INTRODUCTION ............................................................................................... 34 18.2 PROGRAMME 1: ADMINISTRATION ............................................................... 35 18.3 PROGRAMME 2: SKILLS PLANNING ............................................................. 37 18.4 PROGRAMME 3: LEARNING PROGRAMMES AND PROJECTS (Youth) ...... 40 18.5 PROGRAMME 3: LEARNING PROGRAMMES AND PROJECTS (Workers) .. 44 18.6 PROGRAMME 3: LEARNING PROGRAMMES AND PROJECTS (SMEs & Co- Operatives)........................................................................................................ 47 18.7 PROGRAMME 3: LEARNING PROGRAMMES AND PROJECTS ( Career guidance) .......................................................................................................................... 50 18.8 PROGRAMME 4: QUALITY ASSURANCE ....................................................... 53


19 FINANCIAL RESOURCES ................................................................................ 56 19.1 EXPENDITURE TRENDS .................................................................................. 19.1.1 Levies income ........................................................................................................... 56 19.1.2 Interest Income ......................................................................................................... 56 19.1.3 Administration Expenditure ....................................................................................... 56 19.1.4 Mandatory grant expenditure 57 19.1.5 Discretionary expenditure 57 19.2 FINANCIAL ASSETS ........................................................................................ 57 19.2.1 Bank and Cash 57 19.2.2 Accounts Receivables 57 19.3 FINANCIAL RESOURCES OBTAINED FROM DONORS ................................. 57 20 MEDIUM TERM REVENUE/ EXPENDITURE ESTIMATES ............................... 58 21 BUDGET PROGRAMME STRUCTURE 2019/20 .............................................. 59 22.1 PROGRAMME 1: RISKS ................................................................................... 61 22.2 PROGRAMME 2 RISKS .................................................................................... 62 22.3 PROGRAMME 3 RISKS .................................................................................... 63 22.4 PROGRAMME 4 RISKS ............................................................... ……………… 64 23 LINKS TO LONG-TERM INFRASTRUCTURE AND OTHER CAPITAL PLANS 65 24 CONCLUSION................................................................................................... 65

LIST OF FIGURES

Figure 1 - Major OFO Occupational Groupings stratified by South African race groups ANNEXURES ANNEXURE A: 2019/20 ANNUAL PERFORMANCE PLAN ANNEXURE B: 2019/20 SECTOR SKILLS PLAN (SSP) ANNEXURE C: MATERIALITY FRAMEWORK 2019/20 ANNEXURE D: 2019/20 SERVICE LEVEL AGREEMENT (BETWEEN DHET AND INSETA)


2 ACRONYMS

ASISA Association of Savings and Investment South Africa

ATR Annual Training Report

BUSA Business Unity South Africa

B-BBEE Broad Based Black Economic Empowerment

CEO Chief Executive Officer

CFO Chief Financial Officer

CIPRO Companies and Intellectual Property Registration Office

GDP Gross Domestic Product

DHET Department of Higher Education and Training

ETQA Education Training and Quality Assurance

FIA Financial Advisory and Intermediary Association

FICA Financial Intelligence Centre

FAIS Financial Advisory Intermediary Services

FPI Financial Planning Institute

FSCA Financial Sector Conduct Authority

FSC Financial Sector Charter

FSP Financial service providers

GDP Gross domestic product

HRDSA Human Resource Development Strategy for South Africa

ICT Information and communication technologies

IISA Insurance Institute of South Africa

INSETA Insurance Sector Education and Training Authority

MTSF Medium Term Strategic Framework

NDP National Development Plan

NGP National Growth Path

NQF National Qualifications Framework

NSDS National Skills Development Strategy

NSA National Skills Authority

NSF National Skills Fund

OFO Organizing Framework for Occupations

PIVOTAL Professional, vocational, technical and academic learning

QCTO Quality Council for Trade and Occupations

SAIA South African Insurance Association

SAQA South African Qualifications Authority

SETA Sector Education and Training Authority

SDA Skills Development Act

SDLA Skills Development Levies Act

SIC Standard Industrial Classification

SME Small and Micro-enterprises

SSP Sector Skills Plan

TVET Technical, vocational, education and training (colleges)

TCF Treating Customers Fairly

WSP Workplace Skills Plan


3 INTRODUCTION The Insurance Sector Education and Training Authority (INSETA) was established in March 2000, in terms of the Skills Development Act 97 of 1998 and subsequently amended in December 2008. INSETA is required to promote, facilitate and monitor education and skills development provision in the insurance and related services sector. The INSETA has been re-established until 31 March 2020 by Government Gazette notice. The landscape beyond this is being consulted with a view to establishing SETA’s as more permanent structures to facilitate longer term planning linked to national planning cycles. The insurance and related services sector is part of a broader financial services sector. With the increased professionalism of the sector over the years and the myriad of compliance requirements introduced, the entry requirements into the insurance sector have been raised. Investment in education and skills development in order to enhance the economic growth of the sector and to create decent jobs, and transformation in the sector, is therefore imperative. INSETAs strategic plan is currently guided by the MTSF which reflects the political, social, economic, technological, environmental and legal priorities. The INSETA Board, with Executive Management has developed strategic priorities for the five years of the SETAs license period and beyond. There are clear legislative and policy priorities that have guided INSETAs mandate towards the development of this Strategic Plan. The INSETA strategy is aligned with the government strategic priority of “a skilled and capable workforce to support an inclusive growth path” in the Medium-term Strategic Framework (MTSF) for the period 2014/19 INSETA has aligned this strategic plan with Department of Higher Education and Training (DHET) goals and the National Skills Development Strategy (NSDS) III. In implementing the strategy, INSETA will promote the seven NSDS III developmental and transformational imperatives which are race, class, gender, geography, age, disability and the HIV and aids pandemic. INSETA will also partner with various subsectors to focus on implementable interventions that address sustainability issues facing the sector such as transformation, human capital development, risk management and the professionalization of trustees and the sector as a whole.

4 PURPOSE OF THE STRATEGIC PLAN The main purpose of the five year strategic plan is to present INSETA’s seven STRATEGIC GOALS which is structured within four KEY PROGRAMMES. Six of these goals are NSDS III driven and one is an operational goal.

PROGRAMMES AREA GOALS

PROGRAMME 1 ADMINISTRATION GOAL 7

PROGRAMME 2 SKILLS PLANNING GOAL 1 AND GOAL 3

PROGRAMME 3 LEARNING PROGRAMMES GOAL 2,3,4,5

PROGRAMME 4 QUALITY ASSURANCE GOAL 6


5 KEY ASSUMPTIONS UNDERLYING THE STRATEGIC PLAN

• Insurance legislation is continuously impacting the sector in the short to medium term.

• The INSETA environment will remain unchanged in terms of the strategic direction regardless of changes in executive management.

• The impact of Digitisation and Artificial Intelligence is likely to affect the sector significantly in the medium to long term

• The levy income which is the main source of funding is forecasted to remain constant.

• The draft SETA landscape documents proposes changes to the current SETA landscape which may impact on the way INSETA will operate post 2020.

o INSETAs strategic interventions over the next two financial years need to take cognisance of the draft proposals and possible legislative changes

.

6 DEVELOPMENT OF THE STRATEGIC PLAN INSETA undertook a comprehensive approach to the development of the strategic plan including:

• Stakeholder input through a series of road shows;

• The inputs and outputs from the Board and INSETA Management strategic planning workshop;

• Buy-in and inputs from all levels of INSETA employees through a consultative approach;

• A review of INSETA past performance through bi-annual impact studies.



7 KEY MANDATE AND FUNCTIONS OF THE INSETA In terms of its function, the INSETA must perform in accordance with the Skills Development Act (SDA), the Skills Development Levies Act (SDLA), the Public Finance Management Act (PFMA), any other relevant legislation and the Constitution. The INSETA must, in accordance with any prescribed requirements –

➢ develop a Sector Skills Plan within the National Skills Development Strategy (NSDS) framework by:

• implementing its Sector Skills Plan • establishing learning programmes; • approving work-place skills plans and annual training reports; • allocating grants, in the prescribed manner and in accordance with any prescribed standards and criteria, to employers, skills development

providers and workers, and • by monitoring the quality of occupation-based learning in the Sector;

➢ promote occupation-based learning programmes that include work experience by:- • identifying workplaces for practical work experience; • improving the facilitation and assessment of learning; and • assisting with the conclusion of agreements for learning programmes; • register agreements for learning programmes; • support and form partnerships with other agencies on matters related to skills development;

➢ when required to do so, as contemplated in section 7(1) of the SDLA, collect and disburse the skills development levies, allocated to it, in terms

of sections 8 and 9 of the SDLA, in its Sector; ➢ submit to the Director-General any budgets, reports and financial statements on its income and expenditure, which it is required to prepare in

terms of the PFMA, as well as plans and reports on the implementation of its Service Level Agreement; ➢ liaise with the provincial offices of the Department, the provincial skills development forums and any relevant education bodies, established in

terms of any law regulating education and training in the Republic, for the express purpose of improving information about placement opportunities, as well as between skills development providers and the labour market;

➢ formulate policies and procedures of the SETA; ➢ appoint the employees necessary for the performance of its functions; ➢ promote the national standard, established in terms of section 30B, of the Skills Development Act; and ➢ perform any other functions and duties imposed on it by the Skills Development Act, the SDLA, other relevant legislation and this Constitution,

or that are consistent with the purposes of the Skills Development Act, the SDLA, any other relevant legislation and this Constitution.


8 LEGISLATIVE FRAMEWORK AND OTHER MANDATES WITHIN WHICH INSETA FUNCTIONS The table represents the Acts/other mandate documents that predominantly direct and influences INSETA with respect to skills development.

ACT/OTHER MANDATE DOCUMENTS PURPOSE OF THE ACT/OTHER MANDATES

The Skills Development Act (as amended) Provides Institutional Framework to devise an implement national sector and workplace strategies to improve the skills of the SA workplace.

Skills Development Levies Act, 1999 Provides for the imposition of the skills development levy and matters related thereto.

Financial Advisory and Intermediaries Services (FAIS) Act and Fit and Proper requirements in terms of this Act.

The Act sets out the fit and proper requirements for financial services professionals. New requirements include compulsory Regulatory Examinations with strict timeframes as laid down by the Financial Sector Conduct Authority (FSCA).

National Qualifications Framework Act, 2009 To provide for the National Qualifications Framework.

National Skills Development Strategy III (NSDS III) To create a skilled and capable workforce that shares in, and contributes to, the benefits and opportunities of economic expansion and an inclusive growth path.

National Skills Accord To provide defined commitments which talk to the National Growth Path strategy objective of creating five million new jobs by 2020.

Sector Skills Plan (SSP) The SSP is used to set key priorities which guides discretionary grant spend and INSETA targets (Annexure A)

Annual Performance Plan (APP) The annual performance plan sets out the INSETA’s performance commitments and measurement framework

Service Level Agreement (SLA) The SLA sets out the agreement between DHET and INSETA (Annexure B)

8.1 RELEVANT COURT RULINGS

With reference to the matter between BUSA and the Minister of Higher Education and Training. The promulgated status quo will apply.

8.2 POLICY MANDATES

INSETA has taken account of the various policy frameworks that have a direct bearing on our mandate as a SETA in as far as skills development is concerned. In addition, sector-specific charters are also important to the SETA mandate.


8.2.1 National Development Plan (NDP)

The National Development Plan aims to eliminate poverty ( by creating 11 million jobs) and reduce inequality by 2030. South Africa can realise these goals by drawing on the energies of its people, growing an inclusive economy, building capabilities, enhancing the capacity of the state, and promoting leadership and partnerships throughout society. In particular, young people deserve better educational and economic opportunities, and focused efforts are required to eliminate gender inequality. Promoting gender equality and greater opportunities for young people are integrated themes that run throughout this plan. While the achievement of the objectives of the National Development Plan requires progress on a broad front, three priorities stand out: Raising employment through faster economic growth, improving the quality of education, skills development and innovation, and building the capability of the state to play a developmental, transformative role. INSETAs response to the NDP has emerged through the implementation of work-based programs like learnerships, internships, bursary’s and our support to the sector in terms of career & vocational guidance as well as the recruitment of new entrants into the Insurance and related services sector. Projects that have been thriving in this space is the South African Acturial Development Programme ( SAADP) which draws on youth from disadvantaged communities and focuses their talents on addressing the scarcity of Black Acturial professionals in the country. INSETA’s projects have been aligned to the principles of employment equity with an emphasis on staff training, career pathing and mobility in the workplace. This will assist with the meeting and advancing of employment equity targets. These projects embrace the B-BBEE charters, the codes and the B-BBEE scorecards of development finance institutions to expand Black ownership. INSETA plans are to focus on small and expanding firms in the scoping of its projects as they will be responsible for the majority of new jobs that are created. For the participants in INSETA’s projects, it needs to create the skills necessary for start-ups. In collaboration with further education and training (TVET) colleges, it also needs to focus on advancing high-technology skills among SMEs. The spirit of entrepreneurship must be initiated at school level. The cost of doing business must be lowered within the economy, and barriers to entry must be reduced in various value chains. Substantial employment is created indirectly within the insurance sector through property, building maintenance, and security, personal and business services. These initiatives will assist in meeting the NDP’s goal of reducing unemployment from 25 to 6%. Below is a list of the top 15 poorest municipalities in South Africa, which INSETA plans to infiltrate at least 5 in this upcoming financial year and support through various funding mechanisms to address the inequalities experienced in the country.

8.2.1.1 Focus on poverty-stricken areas in South Africa

More than half of SA's population is living in poverty as revealed by data from Statistics South Africa. According to the Poverty Trends Report for 2006 to 2015, 30.4 million people (55.5% of the population) is living in poverty. This is up from the 53.2% or 27.3 million people reported in 2011. Children are the most vulnerable to poverty and those affected are less likely to go to school. Poverty is highest in Limpopo and the Eastern Cape, and lowest in the Western Cape and Gauteng. ( Fin24, https://www.fin24.com/Economy/more-than-50-of-sas-population-is-living-in-poverty-20170822) INSETAs mandate is aligned with the NDP goals to eliminate poverty by addressing the social injustices experienced in societies through participation in national career guidance initiatives, particularly in rural communities. INSETA has begun plans to partner with communities to address the inequalities that persist in the poverty-stricken areas. INSETA rural outreach programs are planned with a view to creating impact and sustainable employment within

https://www.fin24.com/Economy/more-than-50-of-sas-population-is-living-in-poverty-20170822


rural communities. Insurance sector employer and TVET colleges have been key partners in ensuring the success of the INSETA rural outreach programme.

8.2.2 Human Resources Development Strategy for South Africa (HRDS-SA)

Strategic priorities of the above strategy that impact on skills planning initiatives include:

• Strategic Priority 4: To ensure that all new entrants to the labour market have access to employment-focused education and training opportunities. INSETA gives expression to this skills priority by ensuring that education and training are linked to scarce and critical skills, as well as qualifications that have general relevance to the insurance sector. It also gives preference to qualifications that are recognised by the SAQA and the QCTO.

• Strategic Priority 7: To ensure that education and training outcomes are equitable in terms of race, gender, disability and geographic location. This is identical to the demographic and transformational imperatives of the NSDS III, and INSETA incorporates these variables into its projects when scoping for them to ensure that the prerequisites of the B-BBEE Act and the Financial Sector Charter (FSC) are met.

• Strategic Priority 9: To meet INSETA’s skills planning needs in relation to this skills priority, where the minimum level required is NQF Level 4 (for employed and unemployed individuals). INSETA funds skills programmes for workers and unemployed youths where unit standards relevant to the insurance sector are offered.

Other important policies:

• White Paper on Post-School Education and Training (PSET),

• Financial Sector Charter (FSC)

• Medium Term Strategic Framework (MTSF) 2014-2019,

• New Growth Path (NGP), These policy imperatives have provided the foundation against which INSETA will contribute towards the following Skills Priorities:

• Advance the employability potential of young adults

• Strive to meet transformation targets

• Alleviate the scarce and critical skills in the sector

• Supporting the professionalization of the sector

• Supporting rural development initiatives through partnership with SMEs and Co-operatives

8.3 ALIGNMENT WITH NATIONAL STRATEGIES AND PLANS

INSETA’s service level agreement and annual performance plan with the Department of Higher Education and Training has aligned its programmes to the National strategies.


8.3.1 Develop National Strategy to Tackle Skills Shortages

In an attempt to transform the local economy, the NSDS lll prescribes that at least 54% of beneficiaries of skills development should be women, 85% Black and 4% people with disabilities. Many countries are implementing programmes for businesses to play a role in the strategic development, governance and design of their national skills development system. The G20 strategy paper on lifelong learning emphasised employers’ contributions to policy development with regard to:

• Providing training

• Matching education and training to labour market needs

• Encouraging and supporting lifelong learning

• Maintaining the relevance of education and training through continuous evaluation and system improvements

Government initiatives include national qualification frameworks based on occupational standards and competence-based curricula, and the creation of sector skills councils. For these initiatives to succeed, employer involvement is critical. Companies need to work together to develop strategies that grow the skill base the entire industry needs, and so achieve industry-wide transformation. This will eliminate the need for poaching, will help balance employers’ and employees’ expectations, and will align salary scales and rate of promotion with comparable norms outside the insurance industry.


9 SITUATIONAL ANALYSIS

9.1 INTRODUCTION

INSETA operates within the insurance and related services sector which is a highly regulated industry. The INSETA mandate is to support the insurance sector is made up of ten sub-sectors mentioned below. The insurance sector is clustered within the economic group category of “Finance and Business Services” (this includes Insurance, Banking, and Financial and related Administrative Support Institutions). The latest GDP data shows that that this economic sector is one of the top three main contributors to the South African economy. All insurance companies must be registered with the FSCA and must comply with relevant legislation. INSETA’s mandate is to ensure a skilled and capable insurance sector workforce by adopting a learning strategy aimed at all levels of employment in the sector and aligned to the National Skills Development Strategy. INSETA’s role is to promote and facilitate the delivery of education, training and development in order to enhance the skills profile of the insurance sector and support the country’s transformation agenda. (INSETA SSP, 2017)

Sub Sector SIC Codes

Unit trusts 81901

Risk management 81902

Insurance & pension fund (except compulsory social security) 82100

Life insurance 82110

Pension funding 82120

Health care benefits 82131

Short-term insurance 82191

Funeral insurance 82192

Reinsurance 82193

Auxiliary activities (includes brokers and intermediaries) 83000

(Insurance Sector Education and Training Authority, 2017)

Some of the offerings and activities of the sub-sectors above are very similar, so to facilitate more meaningful data, INSETA re-categorised them into three major categories, namely: Short-Term, Long-Term and Collective Investments (Unit Trusts) as illustrated below:


9.1.1 Long-Term Insurance

This covers life-changing events, such as death, retirement and disability. The types of cover offered include Life, Disability, Dread Disease, Funeral and Credit Life Cover.

9.1.2 Short-Term Insurance

This encompasses all types of insurance policies other than life insurance. This includes vehicle, property, household, medical, personal liability, travel and business insurance.

9.1.3 Collective Investments

A collective investment scheme involves members of the public investing money or other assets in a portfolio. This category was formerly known as Unit

Trusts. The scope of coverage of the insurance sector, as clustered per the three categories above, is presented graphically below.


There are 2571 levy-paying companies on the INSETA database. The total number of companies registered on the INSETA database is 16,750. With 53% of all employers based in Gauteng, the richest province in South Africa continues to dominate the insurance industry. The second-most concentrated employer pool is the Western Cape (20%), and it is followed by KwaZulu-Natal (11%) in third place. The Eastern Cape province (6%) has experienced significant growth since 2017 and is a growing business hub. The Short-Term Insurance sub-sector is where the majority of employers’ core business is, followed by Long-Term Insurance and then Collective Investments. (INSETA SSP, 2018)

9.2 TRANSFORMATION WITHIN THE INSURANCE SECTOR

This section focuses on the level of transformation within the insurance sector.

9.2.1 TRANSFORMATION WITHIN SMALL BUSINESSES

Summary: SMALL BUSINESS - Comparative analysis of transformation within occupational categories from 2015 – 2018 Small Businesses are a key driver of job creation in the insurance sector showing a 22% increase over 3 year period. There is an increase of 23% of youth entering the sector but at the same time the aging population is also grown to 26%. Persons with disabilities has been kept at 1% for the past 5 years. Addressing the transformational imperatives has been slow at Management & Professional level within small businesses not having achieved transformation. The Sales and clerical occupational category appear to be the only categories showing an improvement in addressing the transformational imperatives.


9.2.2 TRANSFORMATION WITHIN LARGE BUSINESSES

Summary: LARGE BUSINESS - Comparative analysis of transformation within occupational categories from 2015 – 2018 Large Businesses employ the majority of employees in the insurance sector showing a 15% increase over the 3 year period. There is an increase of 6% of youth entering the sector but at the same time the aging population is also grown to 19%. Persons with disabilities has been kept at 1% for the past 5 years. Addressing the transformational imperatives has been recorded at a steady increase at Management, Professional, Sales and Clerical level within the large businesses unlike in small businesses.

9.3 DRIVERS OF CHANGE IN THE INSURANCE SECTOR

Disruption is the new reality in the global insurance industry as stated in this PwC Insurance 2020 report. PricewaterhouseCoopers (PwC), in its published review on the outlook of the insurance industry for 2020, has identified the following five “megatrends” that are altering the global insurance landscape.

https://www.pwc.com/gx/en/insurance/publications/assets/pwc-insurance-2020-and-beyond.pdf


Change driver Explanation

Social

networks and

changing

customer

behaviour

In recent years, online social networking has emerged as a strong component of social interaction. Financial institutions are starting to

recognise the opportunities social media can bring to their businesses. They are looking to gain a competitive advantage over other

institutions while also trying to mitigate the threats posed by social media. Until recently, the sector has lagged behind some others in

its comprehensive adoption of social media. However, many companies are now using social media to revolutionise the traditional

business models that the finance sector has relied upon for decades.

Technology,

innovation and

FinTech

Financial technology companies are generally start-ups trying to disintermediate incumbent financial systems and challenge traditional

corporations that are less reliant on technology. The financial technology sector is booming. New start-ups are popping up at an

increasing pace, and large banks and insurance companies are being pushed toward increasing digital operations in order to survive.

Environmental

and

sustainability

issues

Climate change is the most significant challenge to achieving sustainable development and it is not just a long-term issue. It is

happening today, and it entails uncertainties for policymakers trying to shape the future, who are unsure what the local, regional,

societal and economic impacts will be. Many decisions being made today have long-term consequences and are sensitive to climate

conditions.

Economic

change and

future growth

opportunities

The future may be hard to predict, but needs not be hard to prepare for. Insurers are grappling with the tough new business,

investment and regulatory environments that are emerging after the global financial crisis of 2008. The industry also faces far broader

challenges. Demographic shifts, the rise in power of the emerging markets and changing customer behaviour will all help shape the

sector’s longer-term future. Insurers who can anticipate and plan for change can create their own future.

Regulatory and

political

landscape

There are strong signs that Africa’s insurance industry is currently in a transformation phase. The global risk landscape has been

marred by political conflict in both emerging and developed markets, highlighting the growing need for political risk insurance globally.

Thus, the underwriting of political risk insurance, locally and internationally, is a growing business.

Source: PWC – Insurance 2020: Turning change into Opportunity, 2012

9.3.1 Key skills issues that are forecasted to impact the insurance sector is:

•


• Artificial Intelligence (AI) and Robotic Process Automation (RPA) technologies that aim to enable automation across a wide variety of tasks, processes, job functions, business areas and industry sectors; and

Reintroduction of the National Health Insurance scheme (NHI) – “abolishing medical aid brokers” mentioned by the Minister of Health in June 2018, would mean that our brokers in this occupational area would need to reskill themselves in another area or find ways to merge themselves into the broader insurance and financial services sector. The insurance industry has gone through its own digital transformation over the past five years. With a general acceptance that digital is here to stay, most insurers have incorporated digital into their organizations, implementing ad hoc capabilities to make their business faster and cheaper. INSETAs forecasted programme interventions will have these future drivers in mind during the project planning process.

10 THE PERFORMANCE ENVIRONMENT

The workforce represented through the 2018/19 WSP submissions for large and medium companies is recorded at 134 253 employees, compared to small companies employees of 10 494 employees. This is the third consecutive quarter for which StatsSA has indicated a growth in employment: The finance and business services sector recorded the second-highest employment gains of 49 000 persons. Employment increased in the informal sector in two industries, one being the financial and business sector (StatsSA, 2017). In the first quarter of 2018 employment in the informal sector increased mainly in Construction (59 000) and Finance and other business services (54 000) industries compared to the fourth quarter of 2017. Compared to Q1: 2017, employment in the informal sector increased in five industries. The largest annual employment gains were observed in the Community and social services (74 000), Finance and other business services (56 000), Construction (36 000) and Transport (35 000) industries (StatsSA, 2018). Challenges in the sector The insurance and related services industry is important to our economy as it is regarded as an area of competitive advantage in that it is part of a sophisticated financial and business services sector. One of the factors accounting for the success is that the insurance and related services industry is well regulated. The downside to the new wave of legislation is that the barriers to entry into the sector and those in the sector not meeting the requirements are likely to lose their jobs. There has been a plea for INSETA to support the sector with reskilling and upskilling those workers who are displaced due to not meeting minimum working requirements. Other disruptors include the introduction of technological advancements which are taking over some of the routine daily tasks. This may lead to unemployment in some cases but must be seen as an opportunity to reskill and multi skill people in other areas of the business. The INSETA Acting CEO is embarking on strategic engagements with sector stakeholders to understand how INSETA could play a crucial role in minimising job losses.


10.1 SECTOR PERFORMANCE

South Africa has a very mature insurance market; the issue is that products remain concentrated among a very small proportion of the population when compared to other countries in Africa. Penetration in terms of the premiums-to-GDP ratio is one of the highest in the world, at over 20%. By 2016, the finance and business sector, which includes the insurance sector, contributed just over 20% to the GDP. Despite a drop in the first quarter of 2017, the Insurance sector has shown consistent, through variable growth in GDP contribution since 2013. The future outlook for the finance and business sector is bright; it remains the most competitive in relation to the rest of the economic sectors.

The INSETA represents a range of organisations from highly sophisticated globally competitive firms to emerging businesses such as small insurance brokers, and those targeting the needs of the poor through the services of burial societies. This makes for complexity in strategic planning for the INSETA and in ensuring that scarce and critical skills needs of the whole sector are addressed, as well as addressing national skills development strategic imperatives of transformation. In addition, while transformation in the sector is evident with the labour force being predominantly female in terms of gender and black in terms of race, this does not match the economically active national population benchmark for the professional and management bands.

10.2 IMPACT ASSESSMENT

INSETA conducted an impact assessment on its Learnerships during 2017. It was found that with regard to the development and transformational imperatives of the NSDS III, INSETA has achieved, and in fact surpassed, the criteria specified for age, race, gender and disability. INSETA is successfully prioritising youth in the learnerships, with 91% of respondents being 35 years or younger. Similarly, with around 90% of learnerships being given to black people, 60% to women and 6% to people with a disability, INSETA has exceeded the criteria that 85% of learnerships should be given to black people, 54% to women and 4% to people with disabilities.

However, with regard to its aim of encouraging national recruitment or recruiting from rural areas, there is considerable room for improvement. Most of the learnerships were offered in Gauteng (63%), followed by the Western Cape (15%) and KwaZulu-Natal (9%), which means that these three provinces accounted for 94% of all the learnerships undertaken and the remaining six provinces accounted for just 6%. Ninety-two percent of survey respondents were still residing in these three provinces at the time of the survey. Rural areas, as well as individuals from rural areas, appeared to be also not significantly benefitting from learnerships. Very few survey respondents originated from a rural area (13.5% of respondents) and very few did their learnership in a rural area (8%). Just 9% of respondents returned to or remained in a rural area after the learnership. Those who moved away from rural areas and smaller provinces to do their learnerships did not necessarily returning to these areas, most likely because learnership and job opportunities are more plentiful in the bigger and more urban provinces and areas.

The results of the impact assessment particularly with regards to geography and rural areas in particular have been a focus for INSETA in 2018 and will continue in the ensuing years.

With regard to INSETA programme implementation, monitoring and evaluation is in place. Monitoring at INSETA involves both work sites and learning sites. Evaluations of the INSETA programmes are undertaken at the close-out of all projects.


11 DEMAND FOR SERVICES

The insurance sector is committed to development of its resources which is evidenced by the industry’s high spend rate, however, the reliance on INSETA to provide additional funding support continues to be great, particularly, in the area of youth development through learnerships and internships. The national demand for tertiary education necessitates a significant investment in bursary funding. With regards to already employed individuals, the demand for skills programmes, learnerships and bursaries continue to be high.

This demand for services is determined through consultation with industry which culminates in the consolidating of the sector skills plans (SSP). This demand is for both scarce and critical as well as industry required skills in the insurance and related services sector.

Not only is the INSETA committed to meeting the skills needs of the sector, but also to remaining true to the national skills strategic imperatives of transformation. The transformation of the existing workforce by race and gender, through building the supply of black skills to the sector as well as supporting the progression and professionalism of existing employees within the sector. This is partly through partnerships with Technical Vocational Education and Training Colleges (TVETs) to increase the supply of relevant qualified and skilled youth, and by supporting the PIVOTAL programmes in partnership with the relevant industry organisations to offer sector related and occupationally- specific qualifications.

Challenges in meeting industry demand

Some of the challenges in meeting industry demand stems from the requests for support service functions within business. The insurance sector cuts across almost all economic sectors. For example, the funeral insurance businesses who sells funeral policies are required to be FAIS fit and proper. In terms of the skills development act, these funeral businesses jurisdiction falls within the financial services sector, INSETA. Part of the funeral service business also entails embalming and coffin making. This requires a different skill set which is only provided by another SETA. Funeral insurance businesses cannot be registered with two Setas so they register with the seta where their core business lies. In doing so, the funeral business is unable to get funding from INSETA for their staff who make coffins and do embalming unless they split the business, which some companies do. Other companies register as non levy payers with the other SETA. INSETA has managed over the years to manage this risk of loosing employers by offering the Generic management, Contact Centre or IT related programmes. INSETA believes that partnerships with other SETAs will address such challenges going forward.

12 ORGANISATIONAL ENVIRONMENT

INSETA’s revenue is primarily from skills development levies.

The INSETA is governed by a Board comprising six constituent nominees who represent the interest of business, six constituent nominees who represent the interest of labour, one member representing Professional Bodies, one member representing Community Organisations and one independent chairperson.


The INSETA Board provides strategic direction to management and plays a crucial oversight role. The INSETA Board and Board sub-committees have reviewed the strategic plan and have been instrumental in informing the development of this strategic plan.

The INSETA is based in Johannesburg. The core divisions within the INSETA are Skills Planning and Research, Learning and Quality Assurance. Support divisions comprise Human Resources, Supply Chain Management, Project Management, Finance and IT.

INSETA has a permanent staff complement of forty seven and approximately thirteen fixed term contractors at various times during the financial year. This number will increase to ensure capacity to deliver on an ambitious strategic plan and to improve on the organisation’s research capability. The INSETA organogram is presented below on page 22. All key positions required for the implementation of this strategic plan have been filled.

13 HUMAN RESOURCES The INSETA recruits in terms of its policy. The structure enables INSETA to deliver on the strategic objectives as outlined in this strategy document.

INSETA programmes are structured into four distinct areas that include;

Programme 1: Administration, this includes the operational and governance functions of the organisation

Programme 2: Skills planning, which includes research and reporting

Programme 3: Learning Programmes and Projects, which is the programme that includes all INSETA PIVOTAL and Catalytic interventions

Programme 4: Quality Assurance, which caters for the quality assurance of learning provision in the sector

LEGEND

ADMINISTRATION BUDGET *

DISCRETIONARY BUDGET **

MANDATORY BUDGET ***

CATALYTIC BUDGET ****

OTHER *****


14 THE TABLE BELOW SETS OUT THE PROGRAMMES PER GOAL, TRENDS AND RESOURCE CONSIDERATIONS

PROGRAMME GOALS RESOURCE CONSIDERATIONS: Budget

Programme1: Administration

Linked to all goals

INSETA is a medium size organisation with 60 permanent staff working in an operational function and budgeted for under the INSETA administration budget. INSETA recruited two fixed term contractors ( TVET Administrators ) to assist at the two TVET Colleges in the Eastern Cape. INSETA has recently insourced the finance division and hence the increase in the staff compliment. Currently there are four approved vacancies. Outsourced Partners are also budgeted for under the INSETA administration budget.

R66 543 750* Note: Percentage breakdown of budget in terms of Discretionary / Mandatory / Administration is detailed in the Annual Performance plan.


Programme 2: Skills planning

Goal 1 A Credible institutional mechanism for skills planning in the sector

• Skills Planning Unit comprises:

o Skills Planning and Research Manager o 1 X Research Specialist o 2 X Skills Planning Specialists o Research Service provider (SSP support) o Occupational Coding Specialist o 2 x Fixed Term contractors ( WSP support)

Various Service providers with the required technical expertise are contracted as and when required to assist with INSETA research requirements.

WSP / ATR process funded from Admin budget* Research R 20 000 000.00**** Mandatory Grant refunds R112 807 500.00***



Programme 3: Learning Programmes and Projects

Goal 2: Increased Access to Occupationally Directed Programmes

Goal 3: Encouraging Better Use of Workplace-Based Skills Development

Goal 4: Encouraging and Supporting Cooperatives, Small Enterprises, Worker-Initiated, NGO and Community Training Initiatives

Goal 5 Building Career and Vocational Guidance Goal 6: Promoting the growth of a public TVET sector college system that is responsive to sector, local, regional and national skills needs and priorities

INSETA programmes are fully resourced; full resource planning is done as per project management guidelines in line with the project management scoping sessions. Various Service providers with the required technical expertise are contracted as and when required according to the Project Charter requirements. The INSETA organogram on page 22 shows the detailed resource breakdown per area. Only 7.5% of the budget reflected in the adjacent column will be used for resource planning.

Skills Program R25 128 125.00 ** Learnerships R109 005 000.00** Internships R64 556 848.00** WiL R29 347 500.00** Bursaries R72 632 500.00** SMME & Co-Ops Skills Prog & support R12 496 875.00** Special Projects R16 631 972.00**** Promotion of Insurance R4 820 666.00****


Programme 4: Quality Assurance

There are no goals linked directly to Programme 4. All quality assurance activities are funded from 10% administration budget.

High demand for qualifications to meet the compliance requirement of the sector remains a trend. Development of occupational qualifications and the alignment of legacy qualifications to the QCTO requirements is an on-going requirement. Support to the TVET colleges is also a main focus area and the support in the development of our partners

Accreditation, Learning Programme / Verification, Certification funded from admin budget*

Qualification Development R9 110 000.00****

QCTO – 0.5% is reserved for the Quality Council for Trades and Occupations – R3 352 502.00*****


15 INSETA ORGANOGRAM

Tumi PeeleActing CEO

Adeline SinghAdeline SinghSkills Manager

Henry GoliathHenry Goliath

Project Office and M&E Manager

Nadia StarrNadia StarrLearning Manager

Nasreen Ravat Nasreen RavatActing ETQA Manager

David MolapoChief Financial Officer

VacantPA to CEO

Matimba BaloyiPA to CFO

Sibulisile MswabukiSibulisile Mswabuki Finance Manager

VacantVacantSCM Manager

3x3xETQA Specialist

1x1xQCTO Specialist

2x2xSpecialist

2x2xSpecialist

2x2x Project Manager

7x7x Administrator

2x2xSpecialist

2x2xAdministrator

2x2x Housekeeper

Nerissa SheopershadNerissa SheopershadGovernance Specialist

1x1xRecord Management

1x1xReceptionist

VacantVacantICT Specialist

Norman MaphalaNorman MaphalaHR Manager

Outsourced PartnerOutsourced PartnerInternal Audit

3X3X Project Specialist

4x4x

Projects Administrators

1x1x M &E Specialist

1x1xM& E Administrator

X1X1PR & Marketing

Adeline SinghAdeline SinghManager Office CEO

VacantVacant

Demand Management Specialist

1x1xResearch Specialist

1x1x HR Specialist

1X1XFinancial Accountant

X1X1Finance Administrator

1x1xFacilities Specialist

1X1X

Management Accountant

Secondment

9x9xETQA Administrators

1x1xSkills Administrator


16 STRATEGIC GOALS

16.1 OVERVIEW OF STRATEGIC GOALS OF INSETA

The insurance sector requires increasingly professional intermediate and high-level occupationally specific qualifications directed towards underwriter, claims assessor, trustees and principle officers and compliance officer occupations. This is to meet the demands of a competitive and challenging market and to meet the increasingly stringent regulatory demands. INSETA is committed to support the sector to achieve this raised level of qualifications through increasing access to a range of qualifications that meet the scarce and critical skills needs of the sector.

16.1.1 SKILLS PRIORITIES IDENTIFIED THROUGH SECTORAL RESEARCH

INSETA’s skills priority actions are directed by the foundation that is set by the NSDS III, and are set by the goals of this same strategy. They include increased access to occupationally-directed programmes, better use of workplace skills development, training and support provided to sector cooperatives, Small enterprises and non-governmental organisations, and enhancing career and vocational guidance. Three of INSETA’s programmes (youth, education and development; addressing the need for scarce and critical skills; and Small and Micro-enterprise development) determine the direction of its skills priorities. INSETA’s skills priorities can be seen from the type of projects that are executed in in Programme 2 and 3.

➢ Advance the employability potential of young adults Equip unemployed youths (18-34 years old) with the means to secure a job and a brighter future through education and training. This is achieved through year-on-year funding increases to applicable projects that advance the employability potential of young adults. This support takes various forms in the projects that are run, such as skills programmes for unemployed youths, bursaries for youths not in employment (in collaboration with the National Student Financial Aid Scheme), SME learnerships and internships. Notwithstanding, the partnerships that have been forged with Professional Bodies, Industry associations and programme specific partners like the SAADP ( South African Actuarial Development Program ) that were established as a rural outreach initiative to draw talent from impoverished communities and train these candidates in the Actuarial profession. Youth from poor rural municipalities will also be targeted for placement on INSETA learnerships over the medium term expenditure period.

➢ Strive to meet transformation targets Assist in tangible ways with the transformation of the insurance sector. One way in which this is realised is through the selection of candidates for bursaries and skills programmes to satisfy the NSDS III principle as follows: Black (85%), Women (54%) and people with Disabilities (4%). Several INSETA projects are geared towards addressing transformational issues.

➢ Alleviate the scarce and critical skills in the sector


Promote the alleviation of scarce and critical skills in the insurance sector by developing new qualifications through QCTO. This is also achieved through funding applications for bursaries, learnerships and internships, and providing PIVOTAL programmes to support the alleviation of scarce and critical skills.

➢ Supporting the professionalization of the sector Foster the development of FSPs by supporting them in their endeavours to obtain FAIS Act credits and pass the regulatory examinations. INSETA gives other tangible expression to this priority through the development of learning material training around FAIS, namely Key Individuals and Representatives manuals. As a SETA, it has also given credence to this objective by developing a national Recognition of Prior Learning option for FSPs, which has the support of the FSCA and was developed jointly with SAQA.

➢ Supporting rural development initiatives through partnership with SMEs and Co-operatives Promote the development of small and micro-enterprises, and Co-Operatives in particular burial societies. INSETA assists burial societies to register as cooperatives and equips them with skills through the training of burial societies. All INSETA’s projects are evaluated for their degree of risk: high, medium or low. A risk register is in place in which the level of risk is recorded, and how the level of risk can be reduced through applying various interventions.

17 ALIGNMENT OF STRATEGIC GOALS TO PRIORITY ACTIONS

Programme NSDS lll Goals Advance the employability potential of young adults

Strive to meet transformation targets

Alleviate the scarce and critical skills in the sector

Supporting the professionalization of the sector

Supporting rural development initiatives through partnership with cooperatives

Programme 1 GOAL 7: A capable and agile organisation

This programme supports the realisation of the other 3 programmes and does not link specifically to the sectoral priority actions.

Programme 2 GOAL 1: Establishment of a credible institutional mechanism for skills planning in the insurance and related services sector

✓ ✓ ✓ ✓ ✓

Programme 3 GOAL 2: Increased access to occupationally directed programmes

✓ ✓ ✓ ✓ ✓


Programme NSDS lll Goals Advance the employability potential of young adults

Strive to meet transformation targets

Alleviate the scarce and critical skills in the sector

Supporting the professionalization of the sector

Supporting rural development initiatives through partnership with cooperatives

Programme 3 GOAL 3: Encouraging better use of workplace-based skills development

✓ ✓ ✓

Programme 3 GOAL 4: Encouraging and supporting cooperatives, small enterprises, worker-initiated, NGO and community training initiatives

✓ ✓ ✓ ✓

Programme 4 GOAL 5: Building career and vocational guidance

✓ ✓ ✓ ✓

Programme 3 GOAL 6: Development, registration and Quality Assurance of Occupational Qualifications in both the Public TVET and Private Education and thereby Promoting the growth of a public TVET sector college system that is responsive to sector, local, regional and national skills needs and priorities

✓ ✓ ✓


17.1 MEASURES TO SUPPORT NATIONAL STRATEGIES AND PLANS

Promoting the growth of the Public TVET College Sector that is responsive to sector, local, regional and national skills needs and priorities

INSETA has planned to do the following in support of the TVET Colleges as follows:

I. Accreditation of TVET Colleges

INSETA is offering support to the TVET Colleges that would like to offer Insurance-specific qualifications. INSETA is planning to award Secondary

Accreditation to 7 TVET Colleges in 2019/20. All Colleges that are awarded accreditation will be provided with Learning Materials to support the

implementation of the learning and to relieve the TVET Colleges of the financial burden of developing Learning Materials.

II. Delivering Training on Skills Programmes though TVET Colleges

INSETA will open a funding window and invite TVET Colleges to apply for funding to offer Skills Programmes to unemployed learners. The following

TVET Colleges will be invited to offer Insurance-specific skills programmes:

i) Ekurhuleni West College

ii) Boland College

iii) College of Cape Town

iv) Gert Sibande College

v) Umfolozi College

vi) Majuba College

vii) South Cape College

In addition, INSETA will open a funding window and invite TVET Colleges to apply for funding to offer Skills Programmes that are not insurance-

specific but are required in the insurance sector. These include skills programmes on IT and will be offered by, among others, Ikhala and Ingwe TVET

Colleges in the Eastern Cape that are in partnership with INSETA.

A total of 1300 unemployed Youth will be supported for these skills programmes for a budgeted amount of R7 686 250.

III. Work Integrated Learning


INSETA plans to support 650 TVET College learners who have completed their N6 Certificate at colleges, by placing them in insurance companies and

TVET Colleges for Work Integrated Learning (WIL). During the 18 months that the learners will be at workplaces, INSETA will offer these learners

training on skills programmes that are based on Short- and Long-Term Insurance Level 4 qualifications. Their successful completion of these will

increase their employability and enable the learners to complete the full short- or Long-Term qualifications; which will in turn assist them to be FAIS

compliant. R29 347 500 is budgeted for these programmes.

IV. Bursaries for TVET College Learners

INSETA will support 342 TVET College learners with Bursaries for the following qualifications that are offered by TVET Colleges; i.e. Business

Management, Management Assistant and Human Resource Management. R6 669 000.00 has been budgeted for this. A funding window will be open

to all TVET Colleges to apply for this support.

V. Development of TVET College Lecturers

INSETA plans to develop 10 TVET College Lecturers on insurance curriculum that has been developed by Insurance Subject Matter Experts and

Professional Bodies qualifications. INSETA will also facilitate short term placement of the TVET College Lecturers with Insurance companies. This will

provide them with the knowledge and competency they will require to train TVET College learners on the insurance occupational qualification that has

been developed. R150 000.00 is budgeted for this intervention.

VI. Development of Learning Materials for Occupational Qualification

INSETA has budgeted for the development of Learning Materials for the first insurance qualification that will be offered exclusively by TVET Colleges.

As soon as the qualification is registered, INSETA will assist TVET Colleges to get accreditation through the QCTO to offer this project. This forms part

of the TVET College Lecturer budget.


All INSETA’s Discretionary Grant programmes comply with the key developmental and transformational imperatives of the NSDS III, namely equity profile, class and geography. B-BBEE and the FSC drive the transformation of the sector. INSETA supports Small Black business because of the poor state of transformation in this sector, which is exacerbated by structural barriers to entry. This support requires concerted efforts and substantial resources. The targets aligned to these goals are featured in the tables that follow this section. INSETA’s Sector Skills Plan provides vital input to Strategic Goal 3: better use of workplace-based skills development through various projects. The QCTO Pilot project to develop a qualification for Underwriters and Insurance Administration links directly to the top two occupations on the scarce and critical skills list featured below. The Actuarial Development Program is another flagship project within INSETA that has a direct impact on the scarce and critical skills list. 5 years ago, the Actuarial profession was listed as the top scarce skill for many years until INSETA partnered for impact on this program. These types of SME projects along with the distribution of mandatory grants to employers are all geared towards alleviating scarce or critical skill shortages and unemployment in the country. The drive to professionalise the sector through candidacy programmes will see a host of graduates move from the middle to high skills level. INSETA has been involved in Bursary programs since its inception; however, the focus has never been to enter the space of advanced skills level where candidates achieve professional designations. INSETA is of the firm belief that this program will be a huge success in the rollout of the 2018 strategic plan and annual performance plan. INSETA also contributes to the burial society sector and, in turn, to Strategic Goal 4: training and support provided to sector cooperatives, small enterprises and non-governmental organisations. This is achieved by measuring target variables, identifying recent legislation that is relevant to burial societies and stokvels, and encouraging implementation of legislation. The SSP strategically targets geographic regions where burial societies need to be increased. Through the facilitation of Bursaries and Skills Programs under this goal (detail of the goals and program targets are featured in detail under programme 3 below). Support to SMEs and Co-operatives are given priority under Goal 4. INSETA’s SSP also contributes to Strategic Goal 5: building career and vocational guidance. This is achieved through its plan to adopt a multifaceted approach to career and vocational guidance through empirical analysis of the various elements. Future research is set to evaluate the current career guidance calendar and appraise whether additional items need to be added. In addition, the research aims to evaluate statistics and trends from Goal 4.8 (career paths are mapped to qualifications in all sectors and sub-sectors and are communicated effectively). Aspects of the National Development Plan, the New Growth Path and associated National Youth Accord, and the HRDSA (Department of Education, 2009) are all considered when scoping projects. These projects include placing youths in employment through various mechanisms, promoting and developing SMEs, SETAs co-financing training with employers, setting targets to achieve a credible mechanism for skills planning, and meeting demographic and transformational imperatives. Tangible operational measures are put in place through INSETA projects, which wholeheartedly support the goals of the NSDS III, the NDP and the HRDSA 2010-2030. Based on the research findings, the continuing growth of employers and employees in the sector, though transformational targets still need to be met hence the firm stance by INSETA to adhere to the transformational imperatives when planning for projects. There are difficulties experienced with recruitment in the insurance sector and this affects transformation. Compliance was also identified as a troublesome issue. Another polemic which raises concern is the large number of entry-level workers entering the insurance sector versus the huge need for skilled workers in the same sector.


A point worth mentioning is the incongruity between the skills employers need and the talent that is available. INSETA has a diverse range of sector partnerships, which include partnerships with TVET colleges, public higher educational institutions, private stakeholder companies, SAQA; and partnerships through projects. New partnerships with professional associations must include the creation of insurance career pathways for the insurance sector. Based on the skills priorities identified, INSETA is in a strong position to facilitate programmes to bridge the skills gaps. SETAs have also been encouraged to grow their internships programme interventions in order to respond to the Presidential call of YES initiative. In aid of this INSETA has incorporated this initiative into its internship programme. The top scarce and critical skills featured below will be addressed within the INSETA Annual Performance plan targets, and in particular, focusing on addressing the Intermediate and High level qualifications that will lead to professionalization in these occupations list here.

17.1.1 Top scarce skills occupations for 2019/2020

OFO Occupation and Code

Insurance Specific

2017-331503 Insurance Loss Adjuster

2017-431204 Insurance Claims Administrator

2017-241301 Financial Investment Advisor

2017-332101 Insurance Agent

2017-332102 Insurance Broker

2017-212101 Actuary

2017-122102 Sales Manager

Sector support Service occupations

2017-121101 Finance Manager

2017-241107 Financial Accountant

2017-242207 Compliance Officer

Information Technology related

2017-2512013 Developer Programmer

2017-251201 Software Developer

2017-251101 ICT Systems Analyst

Source: WSP data, 2018/2019

In INSETAs quest towards implementing the Strategic plan, INSETA promotes the seven NSDS III transformational imperatives across all programmes and goals. INSETA is committed to supporting the sector to achieve this raised level of qualification, by increasing access to occupationally-directed programmes and to a range of qualifications that meet scarce and critical skills needs.


INSETA has also provided support for those who must comply with the “fit and proper” requirements of the FAIS Act. A customised “captains of industry” programme was run successfully with a view to creating cutting-edge leadership attributes and management skills for current industry drivers and has served as the bedrock of INSETA Management and Leadership programmes. The goals outlined in the strategic plan are aligned to meet the scarce and critical skills of the insurance sector, both acquiring qualifications and supporting access to the sector and progression toward greater professionalism and demand driven occupations in the sector. The diagram on the next page depicts the labour market and the interventions to address the skills needs reflected in the strategic goals of the INSETA and based on the following Partnership Model.

INSETA 2017 Sector Skills Plan


18 INSETAS STRATEGIC OUTCOME ORIENTATED GOALS

18.1 INTRODUCTION

INSETA has identified four programmes with seven strategic goals. The strategic goals listed below are critical to the achievement of INSETA’s mandate in respect of NSDS III, the Skills Development Act and INSETA’s operational efficiency. Seven STRATEGIC GOALS for the period 2018 – 2019 contribute to NSDS III vision of a “skilled and capable workforce” have been identified.

PROGRAMME 1: Administration Strategic Outcome Oriented Goal 7 A capable and agile organisation PROGRAMME 2: Skills Planning

Strategic Outcome Oriented Goal 1 A Credible institutional mechanism for skills planning in the sector

PROGRAMME 3: Learning Programmes and Projects Strategic Outcome Oriented Goal 2 Increased Access to Occupationally Directed Programmes

Strategic Outcome Oriented Goal 3 Encouraging Better Use of Workplace-Based Skills Development Strategic Outcome Oriented Goal 4 Encouraging and Supporting Cooperatives, Small Enterprises, Worker-Initiated, NGO and Community

Training Initiatives Strategic Outcome Oriented Goal 5 Building Career and Vocational Guidance PROGRAMME 4: Quality Assurance Strategic Outcome Oriented Goal 6 Development, registration and Quality Assurance of Occupational Qualifications in both the Public TVET and

Private Education and thereby Promoting the growth of a public TVET sector college system that is responsive to sector, local, regional and national skills needs and priorities

The strategic goals listed below are critical to the achievement of INSETA’s mandate in respect of NSDS III, the Skills Development Act and INSETA’s operational efficiency. Six STRATEGIC GOALS for the period 2015 – 2020 that contribute to NSDS III vision of a “skilled and capable workforce” have been identified with our seventh goal “a capable and agile organisation” providing the necessary administrative support to realise the NSDS III aligned goals. These goals are positioned within Programmes 1 – 4.

PROGRAMME 1 ADMINISTRATION GOAL 7

PROGRAMME 2 SKILLS PLANNING GOAL 1 AND GOAL 3

PROGRAMME 3 LEARNING PROGRAMMES GOAL 2,3,4,5

PROGRAMME 4 QUALITY ASSURANCE GOAL 6


18.2 PROGRAMME 1: ADMINISTRATION

Goal Statement 7: A Capable and agile organisation

This goal will address operational processes within the INSETA in order to optimise performance and increase efficiencies and effectiveness. The impact of this will be seamless processes and procedures which will allow for operational effectiveness. In order to achieve this goal, four strategic objectives have been identified:

Strategic Outcome Oriented Goal 7 A capable and agile organisation

Strategic objective 7.1 Maintain effective corporate governance

Strategic objective 7.2 Maintain an effective Supply Chain Management Unit

Strategic objective 7.3 Maintain effective and efficient use of financial resources

Strategic objective 7.4 Establish a marketing and communication division

. Justification: Maintain positive, credible reputation in the market Encourage continuous improvement


GOAL 7: A CAPABLE AND AGILE ORGANISATION

OB

JE

CT

IVE

S

7.1 Maintain effective Corporate governance

7.2 Maintain an effective Supply Chain Management Unit

7.3 Maintain effective and efficient use of financial resources

7.4 Establish a marketing and communication division

IND

ICA

TO

RS

7.1.1 Number of strategic risks identified and mitigated through a Board risk assessment workshop 7.1.2 Number of significant audit findings on the INSETA Management report

7.4.1

7.3.1 7.2.1 Number of significant SCM Audit findings

7.4.2 7.2.1 7.2.2 Percentage of employees

receiving SCM related training

7.3.1 Increase the percentage of Discretionary Fund spend against reserves

7.3.2

7.4.1 Develop a marketing and communication strategy & implementation plan for internal and external stakeholders 7.4.2 Train 80% of the INSETA permanent employees on the marketing and communication strategy & implementation plan

BA

SE

LIN

E

Clean audit

New target

New target

New target

5 y

ear

targ

et

Clean Audit

0 SCM Findings 95% reserves is committed An effective marketing and communication plan A marketing and communication division

Ou

tco

me

A capable INSETA organisation that operates efficiently and in compliance with legislation and policies


18.3 PROGRAMME 2: SKILLS PLANNING

Goal Statement 1:

A Credible institutional mechanism for skills planning in the sector

In order for INSETA to conduct research and impact studies that informs Annual research reports and the Sector Skills Plan (SSP) INSETA will need to ensure that proper foundation for research is established. The developmental plans towards achieving a research centre of excellence will provide INSETA internal and external stakeholders with information related to trends and best practice (local and international), pertinent to education, training and development across the sector. The impact of this process will allow for INSETA to become thought leaders in planning for skills for the future within the broader financial services sector. In order to achieve this goal, one strategic objective has been identified:

Strategic Outcome Oriented Goal 1 A Credible institutional mechanism for skills planning in the sector

Strategic Objective 1.1 To facilitate research and publications within the broader insurance and financial services sector

Justification: As the education and training authority, INSETA is required to support the insurance and financial services sector with funding towards the future skills needs. Understanding the sector is critical as it provides the context in which INSETA enables skills development. The key to providing relevant and impactful skills development interventions is to ensuring that the research produced by INSETA is well informed and provides insight into the constraints and opportunities of labour supply and demand. Given the INSETA’s resource constraints, prioritising a research centre of excellence with established consultative groups will provide credibility to the future research agenda set by INSETA and endorsed by the Board.


O

BJE

CT

IVE

S 1.1 To facilitate research and publications within the broader insurance and financial services sector

IND

ICA

TO

RS

7.2.2 1.1.1 Design a research strategy for INSETA with an implementation plan for the SETAs license period 7.2.3 1.1.2 Establish one research centre of excellence that will incorporate bodies of knowledge from internal and external sources 7.2.4 1.1.3 Develop a research agenda that is approved by the INSETA Board 7.2.5 1.1.4 Publish one research paper annually that will inform the INSETA Sector Skills Plan 7.2.6

SU

B-

PR

OG

RA

MM

E • Research Chair and Research Centre of Excellence

BA

SE

LIN

E

• INSETA Sector Skills Plan

Ta

rge

t

5 Y

ear

• Sector Research Strategy by March 2020

• Establishment of a Research Centre of Excellence

• A Board approved research agenda

• Published INSETA research paper

OU

TC

OM

E

• INSETA body of knowledge research Centre

• Research that will inform the future skills planning and Discretionary grant spend in projects


RESPONSIBLE DEPARTMENT: Research Division RESOURCE CONSIDERATIONS: The expenditure of establishing a CREDIBLE INSTITUTIONAL MECHANISM FOR SKILLS PLANNING IN THE SECTOR will be funded from the catalytic budget and through the project (discretionary funds). Key staff considerations will be a combination of both internal and external resources. Effective and efficient resource planning will be considered for the goal interventions.


18.4 PROGRAMME 3: LEARNING PROGRAMMES AND PROJECTS (Youth)

Goal Statement 2:

Increased Access to Occupationally Directed Programmes

This goal is aimed at increasing the intermediate and higher level professional qualifications listed but not limited to the INSETA top scarce and critical skills list within the sector. Youth who enter the INSETA learning programmes may choose any of the learning mediums ( Learnerships, Bursaries, Skills Programs, Internships ). The impact of this will be planning for specialised skills for the youth in order to fulfil the future occupational demands in the sector. In order to achieve this goal, four strategic objectives have been identified:

Strategic Outcome Oriented Goal 2 Increased Access to Occupationally Directed Programmes

Strategic Objective 2.1 Support youth to enter learning programmes

Strategic Objective 2.2 Support youth to complete learning programmes

Strategic Objective 2.3 Support youth to achieve full or part qualifications on learning programmes

Strategic Objective 2.4 Support youth with workplace based experience through internships, nationally

Strategic Objective 2.5 Support University and TVET youth with workplace based experience through internships, nationally

Justification: The INSETA supports youth to obtain industry required skills through PIVOTAL 1 programmes to enhance the employability and employment and growth of the sector which is in line with INSETAs PRIORITY ACTION PLAN as outlined in the INSETA Strategic Plan and Sector Skills Plan. In order to reinforce race and gender transformation across the sector in line with the NSDS III, the INSETA assists black and woman learners in particular. In addition due consideration will be given to sourcing learners from Metro municipalities, District Municipalities and rural areas. The INSETA supports learning towards qualifications pertinent to the insurance sector scarce and critical and required skills namely:

- actuaries,

- sales and marketing

- insurance sales

- work readiness

1 Professional, vocational, technical and academic learning programmes that result in qualifications or part qualifications on the National Qualifications

Framework – Government Gazette, 3 December No 35940


In order to reach youth and to offer relevant qualifications, partnerships will be forged with Technical Vocational Education and Training Colleges (TVET), private training providers and public Universities. In addition the INSETA supports the placement of new entrants in learnerships, internships and workplace learning.

As such the INSETA supports the progression of learners in various ways which includes gaining access to workplace learning, acquiring part and full qualifications, placement in the sector, as well as building the capacity of public providers for sustainable provision of such required and scarce and critical skills. The learning supported ranges from entry levels to high-level qualifications.


GOAL 2: INCREASED ACCESS TO OCCUPATIONALLY DIRECTED PROGRAMMES

OB

JE

CT

IVE

S 2.1. Support youth to

enter learning programmes

2.2. Support youth to complete learning programmes

2.3. Support youth to achieve full or part qualifications on learning programmes

2.4. Support youth with workplace based experience through internships, nationally.

2.5 Support University and TVET youth with workplace based experience through internships, nationally

IND

ICA

TO

RS

2.1.1. Number of youth entering university or TVET through bursaries to obtain scarce and critical qualifications. 2.1.2 Number of youth entering skills programmes in industry required skills 2.1.3 Number of youth entering learnerships 2.1.4 Number of rural youth entering learnerships

2.2.1 Number of youth successfully completing bursary studies in scarce and critical skill qualifications

2.2.2 Number of youth

successfully completing skills programmes in industry required skills


successfully completing learnerships

2.2.4 Number of rural youth

completing learnerships

2.3.1 Number of youth achieving full or part qualifications through bursaries

2.3.2 Number of youth achieving full or part qualifications through skills programmes


achieving full or part qualifications through learnerships

2.3.4 Number of rural youth achieving full or part qualifications through learnerships

2.4.1 Number of youth entering internship programmes


completing internship programmes


accepted in to employment after completion of internship programmes

2.5.1 Number of TVET graduates supported to access work integrated learning 2.5.2 TVET graduates completing workplace experience through work integrated learning 2.5.3 Number of University graduates supported to access workplace experience through work integrated learning


SU

B -

PR

OG

RA

MM

E

YOUTH ENTERING LEARNING PROGRAMMES

YOUTH COMPLETING LEARNING PROGRAMMES

YOUTH ACHIEVING QUALIFICATIONS ON LEARNING PROGRAMMES

YOUTH SUPPORTED WITH INTERNSHIPS

UNIVERSITY AND TVET YOUTH SUPPORTED WITH INTERNSHIPS

BA

SE

LIN

E Approximately 3400

youth have entered learning programmes

More than 3000 learners completed learning programmes

Around 1900 youth achieved full or part qualifications on learning programmes

569 youth completed internships 449 Youth accepted into employment

328 TVET graduates supported to access workplace experience 351 graduates completing workplace experience

Targ

et5

Yea

r

13000 6033 4856 4830 youth enter internship programmes 3395 completing internships 1800 accepted into employment after internships

1275 TVET graduates supported with workplace experience 1200 TVETs graduates completing workplace experience

OU

TC

OM

E • Qualified new entrants into the labour market

• Work based experience

RESPONSIBLE DEPARTMENT: Learning Division RESOURCE CONSIDERATIONS: The expenditure of the INCREASED ACCESS TO OCCUPATIONALLY DIRECTED PROGRAMMES will be from discretionary funds budget. Key staff considerations will be to use current resources as well as contractors and providers with specialist skills.


18.5 PROGRAMME 3: LEARNING PROGRAMMES AND PROJECTS (Workers)

Goal Statement 3

Encouraging Better Use of Workplace-Based Skills Development

By partnering with employers, programmes for employed workers will address the scarce and critical and industry required skills to support the workforce to adapt to changes in the labour market. Workers who enter the INSETA learning programmes may choose any of the learning mediums ( Learnerships, Bursaries, Skills Programs).This goal aims to address the need for scarce and critical and industry required skills as identified in the Sector Skills Plan and through other research and consultation. In addition, INSETA will partner with professional bodies and associations to professionalise the sector. Impact will be measured by an increase in professionalisation evidenced by professional designations awarded in the sector. In order to achieve this goal, five strategic objectives have been identified:

Strategic Outcome Oriented Goal 3 Encouraging Better Use of Workplace-Based Skills Development

Strategic Objective 3.1 Support Workers to enter learning programmes

Strategic Objective 3.2 Support Workers to complete learning programmes

Strategic Objective 3.3 Support Workers to achieve full or part qualifications

Strategic Objective 3.4 Support professionalism of sector workers through candidacy programmes

Strategic Objective 3.5 Support registered workplaces to receive mandatory grant refunds

Justification: Shortages of scarce and critical skills in the workplace impede businesses to grow and adapt to their markets. On-going development of employed people is important to maintain the high levels of professionalism required of the sector as well as the competitiveness of the sector globally which is in line with INSETAs PRIORITY ACTION PLAN as outlined in the INSETA Strategic Plan and Sector Skills Plan.


SU

B -

PR

OG

RA

MM

E

WORKERS ENTERING LEARNING PROGRAMMES

WORKERS COMPLETING LEARNING PROGRAMMES

WORKERS QUALIFIED AGAINST LEARNING PROGRAMMES

BOARD EXAMINATIONS

MANDATORY GRANTS

GOAL 3: ENCOURAGING BETTER USE OF WORKPLACE-BASED SKILLS DEVELOPMENT

OB

JE

CT

IVE

S 3.1. Support Workers to

enter learning programmes

3.2 Support Workers to complete learning programmes

3.3 Support Workers to achieve full or part qualifications

3.4 Support professionalism of sector workers through candidacy programmes

3.5 Support registered workplaces to receive mandatory grant refunds

IND

ICA

TO

RS

3.1.1 Number of workers entering university or TVET through bursaries towards scarce and critical qualifications 3.1.2 Number of workers entering skills programmes in scarce and critical skills 3.1.3 Number of workers entering learnerships

3.2.1 Number of workers completing university or TVET through bursaries towards scarce and critical qualifications 3.2.2 Number of workers completing skills programmes in scarce and critical skills 3.2.3 Number of workers successfully completing learnerships

3.3.1 Number of workers receiving full or part qualifications through bursaries towards scarce and critical qualifications

3.3.2 Number of workers receiving full or part qualifications through skills programmes 3.3.3 Number of workers receiving full or part qualifications through learnerships 3.3.4 Number of workers receiving professional designations

3.4.1 Number of workers entering candidacy programmes 3.4.2 Number of workers completing candidacy programmes 3.4.3 Number of workers receiving professional designations

3.5.1 Number of Large Firms paid Mandatory grants 3.5.2 Number of Medium Firms paid Mandatory grants 3.5.3 Number of Small Firms paid Mandatory grants


BA

SE

LIN

E Approximately 800 annually Approximately 1000

annually Approximately 300 annually None Mandatory Grant pay-out

ratio of 94% T

arg

et

5 Y

ear

16 589 workers enter learning programmes

12 385 workers completing learning programmes

8006 workers achieving full or part qualifications on learning programmes

100 80% of large firms receive mandatory grants 50% of medium firms receive mandatory grants 25% of medium firms receive mandatory grants

OU

TC

OM

E • Better skilled employees

• Decrease in scarce and critical skills needs • Increased professionalism

RESPONSIBLE DEPARTMENT: Project Office and Learning Division RESOURCE CONSIDERATIONS: The expenditure for the goal ENCOURAGING BETTER USE OF WORKPLACE-BASED SKILLS DEVELOPMENT will be allocated to both Mandatory Grants and discretionary funds budgets. Key staff considerations will be a combination of both internal and external resources. Effective and efficient resource planning will be considered for each scarce and critical skills project.


18.6 PROGRAMME 3: LEARNING PROGRAMMES AND PROJECTS (SMEs & Co-Operatives)

Goal Statement 4:

Encouraging and Supporting Cooperatives, Small Enterprises, Worker-Initiated, NGO and Community Training Initiatives

By partnering with relevant subsector associations and Government funding agencies, this goal aims to develop and support Small and Micro Enterprises (including Cooperatives, NGO’s and CBO’s). This will result in improved business acumen over the next five years. The impact will be a sub-sector that is more professional and better skilled for sustainability, regulatory compliance and consumer benefit. In order to achieve this goal, three strategic objectives have been identified:

Strategic Outcome Oriented Goal 4 Encouraging and supporting cooperatives, small enterprises, worker-initiated, NGO and Community training initiatives

Strategic Objective 4.1. Support small and Micro Enterprise workers and cooperative members through entering learning programmes

Strategic Objective 4.2 Support small and Micro Enterprise workers and cooperative members completing learning programmes

Strategic Objective 4.3 Support small and Micro Enterprise workers and cooperative members to achieve full or part qualifications

Strategic Objective 4.4 Support small and micro brokers to access INSETA funding

Strategic Objective 4.5 Support Cooperatives to access INSETA funding

Justification: Potential employment growth will happen through Small and Micro Enterprises and through Burial Societies and Cooperatives which is in line with INSETAs PRIORITY ACTION PLAN as outlined in the INSETA Strategic Plan and Sector Skills Plan


SU

B -

PR

OG

RA

MM

E

SMALL BUSINESS & Co-Operatives SUPPORTED TO ENTER LEARNING PROGRAMMES

SMALL BUSINESS & Co-Operatives SUPPORTED TO COMPLETE LEARNING PROGRAMMES

SMALL BUSINESS & Co-Operatives SUPPORTED TO BE CERTFIED IN LEARNING PROGRAMMES

SMALL BUSINESS SUPPORTED BY INSETA

CO-OPERATIVES SUPPORTED BY INSETA

GOAL 4: ENCOURAGING AND SUPPORTING COOPERATIVES, SMALL ENTERPRISES, WORKER-INITIATED, NGO AND COMMUNITY TRAINING INITIATIVES

OB

JE

CT

IVE

S

4.1 Support small and Micro Enterprise workers and cooperative members through entering learning programmes

4.2 Support small and Micro Enterprise workers and cooperative members completing learning programmes

4.3 Support small and Micro Enterprise workers and cooperative members to achieve full or part qualifications

4.4 Support small and micro brokers to access INSETA funding

4.5 Support Cooperatives to access INSETA funding

IND

ICA

TO

RS

4.1.1 Number of small business workers entering university or TVET through bursaries in areas of scarce and critical skills 4.1.2 Number of Small business workers entering skills programmes 4.1.3 Number of Co-operative members (Burial Societies) entering in skills programmes

4.2 1 Number of workers successfully completing bursary studies in areas of scarce and critical skills 4.2.2 Number of Small business workers completed skills programmes 4.2.3 Number of Co-operative members (Burial Societies) completed skills programmes

4.3.1 Number of Small business workers receiving full or part qualifications through bursaries 4.3.2 Number of Small business workers receiving full or part qualifications through skills programmes 4.3.3 Number of Co-operative members (Burial Societies) receiving full or part qualifications through skills programmes

4.4.1. Number of small and micro enterprises supported to access INSETA funding

4.5.1 Number of cooperatives including burial societies supported to access INSETA funding


BA

SE

LIN

E 1800 1600 900 905 113

Ta

rge

t

5 Y

ea

r

8802 3990 3300 6000 5000

OU

TC

OM

E • SMMEs that show growth and are sustainable

• Support to Burials and Cooperatives to become legalised and sustainable with education and training • Improved SMME skills profile

RESPONSIBLE DEPARTMENT: Skills Development Department RESOURCE CONSIDERATIONS: The expenditure of the strategic goal: ENCOURAGING AND SUPPORTING COOPERATIVES, SMALL ENTERPRISES, WORKER-INITIATED, NGO AND COMMUNITY TRAINING INITIATIVES will be targeted from annual discretionary grant allocation. Key staff considerations will be a combination of both internal and external resources. Effective and efficient resource planning will be considered for each SME Project.


18.7 PROGRAMME 3: LEARNING PROGRAMMES AND PROJECTS ( Career guidance)

Goal Statement 5:

Building Career and Vocational Guidance

Career guides will accurately reflect the career progression and learning pathway opportunities of the Insurance and Related Services Sector over the next five years. INSETA will partner with schools, TVET colleges, universities and SAQA in the rollout of career guides. The impact will be relevant, informed career guidance to youth accessing these channels in the nine provinces, and growing a potential pool of talent to access the sector. In order to achieve this goal, three strategic objectives have been identified:

Strategic Outcome Oriented Goal 5 Building Career and Vocational Guidance

Strategic Objective 5.1 Update the career guide

Strategic Objective 5.2 Provide career guidance and development information to youth both within the sector and prospective new entrants to the sector

Strategic Objective 5.3 Forge partnerships with Public Institutions and Industry stakeholders

. Justification: Positioning the insurance sector as a sector of choice will grow the pool of potential black and women talent for the sector and allow opportunities to access the sector to youth. This objective also provides the opportunity for INSETA to reach provinces within which the insurance sector is underrepresented, through building partnerships across the provinces which is in line with INSETAs PRIORITY ACTION PLAN as outlined in the INSETA Strategic Plan and Sector Skills Plan


BA

SE

LIN

E

Career Guide

Career guides have been distributed in all nine provinces and two district municipalities per province

Partnerships in nine Provinces.

Targ

et

5 Y

ear

Up to date career guide Reach 6 district municipalities in nine provinces

9 public institutions 12 industry partnerships

GOAL 5: BUILDING CAREER AND VOCATIONAL GUIDANCE

OB

JE

CT

IVE

S

5.1 Update the career guide

5.2 Provide career guidance and development information to youth both within the sector and prospective entrants to the sector

5.3 Forge partnerships with public institutions and industry stakeholders

IND

ICA

TO

RS

5.1.1 Update the INSETA career guide

5.2.1 Number of District municipalities reached with career guidance to youth

5.3.1 Number of Public institutions partnered with on career guidance 5.3.2 Number of Industry stakeholders partnered with on career guidance

SU

B -

PR

OG

RA

MM

E

UPDATED CAREER GUIDE

CAREER GUIDANCE AND DEVELOPMENT

INDUSTRY AND PUBLIC INSTITUTION PARTNERSHIPS


OU

TC

OM

E Career guidance and development information available in all nine province

RESPONSIBLE DEPARTMENT: CEO Office RESOURCE CONSIDERATIONS: The expenditure of the strategic goal: BUILDING CAREER AND VOCATIONAL GUIDANCE will be allocated to discretionary funds budget. Key staff considerations will be to use current resources as well as contracting providers with specialist skills.


18.8 PROGRAMME 4: QUALITY ASSURANCE

Goal Statement 6:

Development, registration and Quality Assurance of Occupational Qualifications in both the Public TVET and Private Education and thereby Promoting the growth of a public TVET sector college system that is responsive to sector, local, regional and national skills needs and priorities

The QCTO has delegated the INSETA to be the Quality Assurance Partner (QAP) for all the legacy qualifications in the Insurance Sector; the Development Quality Partner (DQP) for the development of new occupational qualifications and to realign the current unit standard based and full qualifications to the Occupational Qualification model; including learning materials and assessment tools and the quality assurance of occupation-based training delivery and assessments In order to achieve this goal, three strategic objectives have been identified:

Strategic Outcome Oriented Goal 6

Development, registration and Quality Assurance of Occupational Qualifications in both the Public TVET and Private Education and thereby Promoting the growth of a public TVET sector college system that is responsive to sector, local, regional and national skills needs and priorities

Strategic Objective 6.1 Public TVET colleges awarded programme approval as INSETA training providers

Strategic Objective 6.2 Public TVET lecturers developed to support the implementation of Inseta Programmes

Strategic Objective 6.3 Provide occupational qualifications for the sector

Strategic Objective 6.4 Support learners to enter occupational qualifications through RPL process

Justification: Promoting the growth of the public TVET sector will increase the pool of accredited Skills Development Providers and afford greater access to quality learning programmes that support the insurance sector. The realignment of legacy qualifications to the occupational qualifications model, including the development of new occupational qualifications and the quality assurance of the same will ensure the existence of sector-specific occupational qualifications that meet the quality standards and relevance requirements all the subsectors insurance in the insurance industry.


SU

B -

PR

OG

RA

MM

E

PUBLIC TVET PROGRAMME APPROVAL

PUBLIC TVET LECTURER PROGRAMMES

APPROVAL OF OCCUPATIONAL QUALIFICATIONS

TRAINING OF LEARNERS ON NEW OCCUPATIONAL QUALIFICATIONS

BA

SE

LIN

E

0 TVET colleges have programme approval

8 Lecturers developed

2 Occupational qualifications registered

New Target – no baseline

TA

RG

ET

5

YE

AR

S

18 Colleges receive programme approval

34 lecturers developed 11 Occupational qualifications registered

590

OU

TC

OM

E

Develop, register and quality assure occupational qualifications that are demanded and approved by Insurance Sector that will also be offered by public TVET colleges through trained TVET College lecturers.

GOAL 6 : Development, registration and Quality Assurance of Occupational Qualifications in both the Public TVET and Private Education and thereby Promoting the growth of a public TVET sector college system that is responsive to sector, local, regional and national skills needs and priorities

OB

JE

CT

IVE

S 6.1 Public TVET colleges

awarded programme approval as INSETA training providers

6.2 Public TVET lecturers developed to support the implementation of Inseta Programmes

6.3 Provide occupational qualifications for the sector

6.4 Support learners to enter occupational qualifications through RPL process

IND

ICA

T

OR

S

6.1.1 Number of programme approvals awarded to Public TVET Colleges

6.2.1 Number of TVET lecturers developed to support the implementation of Inseta Programmes

6.3.1 Development of new occupational qualifications for brokers

6.4.1 Number of learners entering occupational qualifications through RPL process


RESPONSIBLE DEPARTMENT: ETQA RESOURCE CONSIDERATIONS: The expenditure of the strategic goal 6 will be funded from both administration and discretionary funds. Key staff considerations will be to use current resources as well as contracting providers with specialist skills.


19 FINANCIAL RESOURCES

19.1 EXPENDITURE TRENDS

19.1.1 Levies income

Levies received in the immediately preceding 3 financial years as well as levies received to date in the current financial year were used to estimate levy income for 2019/20. In estimating the amount receivable, a sensitivity analysis was incorporated by predicting average monthly levies excluding periods in which unusually high or low amounts were received in previous periods. The estimated levy income was then projected by an inflation rate of 5.3% as guided by National Treasury’s Mid Term Expenditure Framework (MTEF) guideline to estimate the 2019/20 income. The inflation rate of 5.3% was compared to the Consumer Price Index (CPI) published by the Reserve Bank at the time of budget preparation which was 4.6%. This was not considered to be indicative of the expected increase in salaries within the Insurance sector hence 5.3% was used to project levy income for 2019/20. Other assumptions:

a. It was assumed that levies will continue to be received in relation to previous scheme years

hence the budget is not limited to one scheme year’s levy income.

b. Although penalties and interest are received every year, this budget has prudently excluded

the such receipts as they are based on default by employers in making Skills Development

Levy remittances within legislated due dates. As such, no clear trend or pattern can be

established to estimate interest and penalties that may be received in 2019/20

19.1.2 Interest Income

Interest income results from cash and cash equivalents held at financial institutions. Interest has been prudently estimated to be 90% of average interest received in the last 3 financial years. It is expected that invested amounts will decrease as retained cash surpluses are utilised to fund discretionary expenditure in 2018/19 and 2019/20. Interest is expected to be earned at 7% per annum being the effective interest rate at the time of budget preparation; however, as the invested balance is expected to decrease, total interest income will increase by only 4% in 2019/20.

19.1.3 Administration Expenditure

The overall variance is an increase of 5% due to a combination of expected savings and increases in administration expenditure components. The most significant are as follows;

• QCTO expenditure for the 2019/20 financial year has been determined by the Minister of Higher Education and Training on 31 July 2018. No other assumptions were applied in determining this amount.

• Personnel costs are expected to increase due to the filling of vacant posts and recruitment of additional staff.

• Reduced capital expenditure in 2019/20 as computer hardware and software expenditure will be incurred in 2018/19


19.1.4 Mandatory grant expenditure

Mandatory grant expenditure is estimated at 89% of the mandatory portion of levy income received. 89% is an average of actual pay-out percentages in the last 3 financial years.

19.1.5 Discretionary expenditure

Grant regulations state that a SETA must allocate a minimum of 80% of its discretionary expenditure on pivotal programmes for learners. INSETA’s pivotal grant expenditure for 2019/20 is budgeted at 90% of the Discretionary expenditure, while 10% will be used for spending on Catalytic projects.

19.2 FINANCIAL ASSETS

19.2.1 Bank and Cash

Though there is a plan to commit the discretionary budget in the 2019/20 financial year, the actual spending on commitments is dependent on external factors such as the exact number of learners remaining and finishing the programs that they enrolled for, employers showing interest and appetite in taking on learners on work based training. These factors usually lead to slow spending that results in the funds having to be deposited with the CPD at the Reserve bank. These funds are safe and earn interest whilst waiting to be spent.

19.2.2 Accounts Receivables

Any receivables that arise as a result of SARS levies are usually recoverable from the subsequent receipt of levies from the affected companies. INSETA is also proactive in validating accuracy and completeness of levies received from large paying companies before making Mandatory Grant payments.

19.3 FINANCIAL RESOURCES OBTAINED FROM DONORS

The budget does not envisage any projected donor funding being secured and no projections have been made for this over the medium term.


20 MEDIUM TERM REVENUE/ EXPENDITURE ESTIMATES The table below summarises medium term revenue/expenditure.

Budget2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

INCOME

Levy income (80%) 417,006,000 431,422,000 459,298,000 471,000,000 507,000,000 534,885,000 564,303,675

Administration (10.5%) 54,742,000 56,149,000 60,340,000 61,818,750 66,543,750 70,203,656 74,064,857

QCTO Income (0.5%) 2,606,762 2,673,762 2,873,333 2,943,750 3,352,502 3,343,031 3,526,898

Admin income (10%) 52,135,238 53,475,238 57,466,667 58,875,000 63,191,248 66,860,625 70,537,959

Mandatory (20%) 103,438,000 109,491,000 110,567,000 117,750,000 126,750,000 133,721,250 141,075,919

Discretionary (49.5%) 258,826,000 265,782,000 288,391,000 291,431,250 313,706,250 330,960,094 349,162,899

Levy interest and penalties 14,975,000 12,373,000 6,465,000 - 4,409,254 4,409,254 4,409,254

Interest income 20,028,000 25,900,000 25,826,000 20,187,900 31,671,482 33,888,486 36,260,680

Other income 66,000 34,000 - - - - -

TOTAL INCOME 452,075,000 469,729,000 491,589,000 491,187,900 543,080,736 573,182,740 604,973,609

EXPENDITURE

Administration expenditure 48,328,000 55,605,000 59,408,000 61,818,750 66,543,750 70,203,656 74,064,857

QCTO expenditure 1,365,000 2,107,000 2,422,000 2,943,750 3,352,502 3,343,031 3,526,898

Administration expenditure 46,963,000 53,498,000 56,986,000 58,875,000 63,191,248 66,860,625 70,537,959

Mandatory Grant Expenses 89,871,000 94,764,000 103,800,000 101,265,000 112,807,500 119,011,913 125,557,568

Discretionary expenditure 272,693,000 314,553,000 235,612,000 328,104,150 363,729,486 383,967,171 405,351,184

Pivotal (86%) 295,293,735 313,166,848 330,211,767 348,602,018

Catalytic (14%) 32,810,415 50,562,638 53,755,404 56,749,166

TOTAL EXPENDITURE 410,892,000 464,922,000 398,820,000 491,187,900 543,080,736 573,182,740 604,973,609

Surplus/ (Deficit) 41,183,000 4,807,000 92,769,000 - - - -

Medium Term expenditureAudited


21 BUDGET PROGRAMME STRUCTURE 2019/20

Programme No. Learners Admin Budget (10%) Mandatory grant (20% ) Discretionary Grant budget /

PIVOTAL (90%)

Corporate services 5 826 439

Finance, SCM & Assets, Projects 16 977 057

Governance (Audit & Risk ) 8 108 617

Human Resources 32 600 637

Information Technology 1 587 000

R 66 543 750

Programme 2: Skills Planning

Research 20 000 000,00

Sector Skills Plan R 1 444 000

Workplace Skills plans and Annual Training reports

R112 807 500

Programme 3: Learning Programmes

Bursaries 2300 72 632 500,00

Skills Programmes 4250 25 128 125,00

Learnerships 2250 109 005 000,00

Internships 1200 64 556 848,00

Work Integrated Learning ( TVET Internship)]\ 650 29 347 500,00

Small and Micro Enterprises & Co Operative Programs

1750 12 496 875,00

Special Projects +/- 1200 16 631 972,00

Promotion of Insurance 4 820 666,00

Programme 4: Quality Assurance

Provider Accreditation

Learning programmes Verification

Certification

Qualification development 9 110 000,00

Total Budget Per Programme 50 562 638,00

R1 444 000 R112 807 500 R313 166 848,00 (PIVOTAL)

Total BUDGET R66 543 750 R112 807 500 363 729 486,00

7.5 % of this cost is used

towards Project Administration

QCTO – 0.5% is reserved for the Quality Council for Trades and Occupations

R 3 352 502.00


22 RISK MANAGEMENT

Risk management has been adopted as a governance requirement in order to address all factors that may hinder or prevent INSETA from achieving all its goals and objectives. A strategic risk review is conducted annually. The strategic risks and operational risks are evaluated before and after applying mitigating controls. Risks with a residual risk rating of 15 and above are reported to the Audit and Risk Committee and the Board. The internal audit three year rolling plan has been scoped based on the risks identified. INSETA’s policy for managing risks within all divisions takes the following into consideration:

• Responsibility for promoting awareness of risk management;

• Mechanisms for assessing the state of risk management;

• Responsibility for mitigating risk exposures; and

• Mechanisms for monitoring and reporting the state of risk management. INSETA’s management is responsible for applying the risk management framework and techniques in their planning, operating and reporting activities. AWARENESS

• Awareness is a key component for identifying, and subsequently taking appropriate action to mitigate risks.

• On-going training and communication of the threats to the business, together with business and task-orientated skills training, are essential components of risk mitigation measures.


22.1 PROGRAMME 1: Administration RISKS

RiskNo. Risk Description Contributing Factors

Key Management Controls in Place/Risk Mitigation

1 Low spend and low commitment rates will lead to Reputational Risk

# Unclear Bid Terms of Reference leading to cancellation of Bids and delays in the implementation of projects # Inclusion of Discretionary Grant allocation in the Supply Chain Policy; which requires several committees to consider # Non-compliance of Service Providers to SLAs

# Bid Terms of Reference are drafted by a multi-disciplinary team under the guidance of the SCM Manager to ensure that they are clear # Discretionary grant policy and guidelines have been reviewed to exclude the SCM process but include a multidisciplinary team to ensure fairness of the allocation process # Project Steering Committee meetings are held with service providers to monitor compliance that will in turn trigger payments against project progress

2 Delays in the procurement of goods and services may negatively impact INSETA service delivery with value of R500 000 and below

# Delays in contracting where legal opinion must be sought # Failure of system integration with National Treasury's CSD leading to inefficient SCM Processes

# Transaction advisor has been contracted to clarify the SLA to the Service Providers before the signing of contracts # IT Service Provider is looking into the integration of the two systems

3 Non-compliance with SCM regulations and INSETA SCM policy may lead to possible litigation

# Non or late submission of compulsory reports to National Treasury # Lack of understanding of Treasury Regulations and SCM Policy

# SCM Policy and procedures are reviewed as and when Instruction Notes are issued and training done for staff members who are involved in procurement # Segregation of duties between the Bid Committees is implemented

4 Delays in the timeous closure of projects

# Unresponsive bids resulting in cancellation of bids # Failure of bidders to respond appropriately or failure to respond to the tenders

# Compulsory briefing sessions to clarify the purpose of tenders and answer questions from potential bidders # Bid Terms of Reference are drafted by a multi-disciplinary team under the guidance of the SCM Manager to ensure that they are clear

5 Ineffective communication to Stakeholders resulting in the latter not participating in INSETA projects, leading to INSETA not being considered relevant to the sector

# Lack of focus of communicating with the sector at strategic level to discuss partnerships on interventions that will impact the sector positively # Current methods of communication are not meaningfully reaching stakeholders

# Roadshows with mixed groups of stakeholders (large, small etc.) to provide accurate information through a verification of information process # Establish a marketing and communication division # Develop a marketing and communication strategy and implementation plan


22.2 PROGRAMME 2: Skills Planning RISKS

RiskNo. Risk Description Contributing Factors

Key Management Controls in

Place/Risk Mitigation

1 Inaccurate identification of relevant scares and critical skills in the sector

# Occupational codes on the OFO framework are not accurately reflecting all occupations within all the insurance sub-sectors # Absence of an industry expert leading the occupational coding discussion which could lead to the identification of scarce and critical skills needs

# More sector consultation on the scarce list through the Consultative task team has been set up # Communication to stakeholder regarding their participation in OFO review engagements

2 Possible misinformation by external stakeholders (employers, training providers and SDFs)

Misinformation by employers could yield incorrect information during data collection and surveys of sub-sectors

The need for allocating well-informed human resources at correct levels as Stakeholder representatives to provide information to INSETA and its contracted resources

3 Inadequate skilled resources to support the research portfolio hampers creativity in project that can be implemented to positively impact the sector

# Lack of skilled personnel to support the research portfolio # Absence of relevant sector research papers to inform the INSETA Sector Skills Planning process

# Project to outsource research to the Higher Education Institutions and to mentor INSETA Research resources is underway # Partnerships with companies that have conducted research on the Insurance Sector is motivated

4 Inadequate impact on sector transformation

# Inadequate communication with the sector to implement strategic projects # Lack of partnerships with the sector due to perceived mandate constraints

# More strategic communication and partnerships with the sector to bring about transformation # Communication of differences in the various sub-sector to tailor-make interventions

5 Lack of implementation of what has come out of the research conducted

# Poor or incorrect interpretation or analysis of research

Broad interrogation of research results with the sector to come up with solutions that will benefit the sector


22.3 PROGRAMME 3: Learning Programme RISKS

Risk

No. Risk Description

Contributing Factors



1 Lack of confidence in the Public TVET Colleges' quality of learning by the Insurance Sector

# Sector perception regarding the quality of learners coming from TVET Colleges # Lack of sufficient partnerships with the Insurance sector to give input into TVET College Curriculum # Lack of Insurance expertise in the TVET Colleges

# Training of TVET College learners that are funded for Work Integrated Learning (WIL) on Insurance-Specific skill programmes to make them more attractive to employers # Foster Partnerships with the insurance sector to influence the curriculum of Public TVETs # Occupational Qualification that will be offered solely by TVET Colleges queued for registration by the QCTO # Develop TVET College Lecturers to be able to offer Insurance Skills Programmes

2 Lack of coordination of INSETA-Stakeholder interventions against transformational imperatives

# Ineffective operating models that are not informed by sector requirements/needs # Decentralised and Multiple application processes # Ineffective communication to Stakeholders regarding interventions in the sector # Insufficient employer commitment to programme success # Prioritisation of work targets commitment over skills development by employed learners, leading to increased learner drop-out numbers

# More strategic engagements with the sector regarding possible partnerships # Coordinated application process across INSETA learning interventions # High intensity monitoring of projects through the M & E to ensure that all processes completed and early detection of learner drop-outs to enable early intervention and risk mitigation # Strong relationships with employers to discuss how they can support employed learners to complete their learning programmes

3 Failure to fully address SME needs

# Inability to acquire and maintain SMEs subsector relations # SMME expectations and INSETA mandate at odds # Poor communication to among stakeholders; i.e. FSCA, DHET, professional bodies and industry associations, training institutions, employers and SMEs # Increased barriers due to legislation (mandatory grant decrease and WSP submissions) # Lack of INSETA Regional Representatives

# Roadshows with mixed groups of stakeholders (large, small) to provide information and solicit support for SMEs # Discussions with SMEs to clarify INSETA Mandate and come-up with other ways of supporting SMEs Representation of INSETA officials on industry task teams that address with sector priorities # Increased support for SMEs regarding compliance # Increased support for the stakeholders through Regional Advisors

4 Lack of participation of the SMEs in INSETA offerings

# Cumbersome processes before any support can be offered

Support brought in periodically to support SMEs with compliance for them to access DG funding

5 Inadequate support offered to SMEs

Lack of knowledge of the needs and challenges of SMEs

More meaningful engagements with SMEs to find out what their needs are and prioritise the solution to alleviate the challenges that would cause SMEs their businesses


22.4 PROGRAMME 4: Quality Assurance RISKS

Risk

No. Risk Description

Contributing Factors



1 Lack of public TVET Colleges applying to offer Insurance-specific qualification

# Lack of interest from the colleges to offer insurance programmes due to the DHET TVET College Lecturer payment quota on programmes offered by TVET Colleges outside the latter’s main curriculum # Lack of subject matter experts at TVET Colleges who can train learners on Insurance qualification # Lack of TVET Colleges' funds to develop learning materials

# Discussions the DHET to change its payment quota model to include sector-specific programmes # Facilitation of private-public partnerships between private Skills Development providers and public TVET Colleges to develop TVET College Lecturers to be able to offer Insurance Skills Programmes # Provision of learning materials developed by INSETA to all TVET Colleges that are offered accreditation

2 Lack of continuity to offer Insurance-specific programmes by the public TVET Colleges

# Lack of sufficient and/or continued subject matter expertise in the public TVET Colleges to sustain the delivery of Insurance-specific programmes # Low number of TVET College Learners applying for Insurance-specific programmes # Lack of confidence of the insurance companies in the quality of the learning offered TVET Colleges

# INSETA to encourage fostering of public-private partnerships with accredited private training providers that will run INSETA projects in partnership with public TVET Colleges and ensure transfer of skills to college lecturers # INSETA to ensure that TVET College Learners are given full information and support regarding insurance-programmes # INSETA to continually support the TVET College lecturers to improve their competency and closely monitor the quality of delivery by the TVET Colleges

3 Lack of public TVET Colleges lecturers qualified to offer training on Insurance-specific programmes

# Lack of interest by the TVET colleges in being trained on Insurance-Specific programmes and add to their work-load # Low number of TVET College Lecturers found competent to train learners on insurance-specific programmes # Lack of insurance companies willing to host TVET College Lecturers to gain workplace experience

# Hosting of the TVET College lecturers at workplaces to expose them to what the sector looks like and alleviate their fear of the unknown sector # TVET College Lecturers recruited to the programme must have suitable qualifications background to enable them to grasp the concept of the programme # INSETA to solicit the support and commitment of insurance companies to host and coach TVET College Lecturers

4 Lack of insurance sector confidence in the quality of learners coming out of TVET Colleges

# Irrelevance of TVET programmes to the insurance sector # Lack of readiness for the workplace

# Offering insurance specific skills programmes during WIL programmes # Work readiness programme to prepare learners for workplace to be part of WIL Programme

5 Delays in implementation of sector-specific programmes at TVETs

# Poor response of TVET Lecturers to sector knowledge and competency development due to the requirement for extra time # Lack of mentorship by sector subject matter experts

# Partnerships with TVETs to allocate CPD points to TVET Lecturers who participate in these programmes # Mentorship programme to transfer skills to TVET Lecturers


23 LINKS TO LONG-TERM INFRASTRUCTURE AND OTHER CAPITAL PLANS

INSETA’s strategic plan does not have any links to long-term infrastructure and other capital plans.

24 CONCLUSION INSETA commits to deliver on the approved five year INSETA Strategic Plan with an annual review submitted in the form of the INSETA Annual Performance Plan report.

Documents

INSETA STRATEGIC PLAN - Amazon Web Services · INSETA STRATEGIC PLAN 2015/16 – 2019/20 15 November 2018 . Final Strategic Plan 2019/20 Version 8 Page 2 1 FOREWORD The INSETA strategy