South African insurers are hard pressed to keep up with new laws, rules and regulations. There were, for example, 454 new Acts, bills, regulations, codes, circulars, directives and standards applicable to the sector in 2010 alone! Over the past year the focus has been on matching insurance business practices with the requirements of the Consumer Protection Act (CPA) 2008. The CPA requires that any contracts with consumers – policy documents in the insurance space – are presented in plain and understandable language.
It has come to FMI’s attention that Momentum circulated an article implying that there is uncertainty in the manner in which FMI assess permanent disability claims under the ‘Own Occupation’ definition. The article suggests that FMI will terminate a permanent income claim once the claimant is able to return to their own or any suited alternative occupation, irrespective of whether the claimant is insured under the ‘Own Occupation’ or ‘Own or Suited Occupation’ definitions.
It is a known fact that South Africa as an emerging market is affected by the current volatile global economic situation. Financial experts agree that the role of financial intermediaries has never been more significant, as individuals rely increasingly more on Financial Advisers to protect their income against volatile markets. This presents challenges but also opportunities for Financial Advisers:
Marius van Wyk, an independent adviser from Western Cape, has been one of FMI’s top performers. He has more than 13 years of experience in the insurance industry and has seen the growing number of clients who realise the benefits of especially temporary income protection. How do clients react when you bring up the topic of ‘income protection’ especially when it comes to disability? Clients are mostly very open to discuss this issue and most of them are unaware of the products available when it comes to temporary disability cover.
The SME Growth Index, the first and largest study of its kind in South Africa, has been released at the end of November and reveals what small businesses see as the main obstacles to business growth. Not surprisingly, inflexible labour legislation and black empowerment were some of the main frustrations small business owners highlighted in the survey. Small business owners work closely with their staff, and would like more flexibility in terms of how the employer and employee structure their working arrangements.
Hard work pays off for two students FMI are committed to being socially responsible and aim to make a difference where we possibly can. Just as we believe that helping you to protect your income has a positive impact on the livelihood of many, so we believe that changing one person’s future can change the lives of many others. As such, we are proud to give you an update on two of our bursary students.
The youngsters of today are the market of tomorrow. Financial Advisers building sustainable businesses will recognise the importance of tapping into this market to future-proof their practices, as their Baby Boomer clients move into retirement. But who are these youngsters and how does a Financial Adviser approach them?
With 11 years of experience in the Financial Services sector, Charn is a practising CFP® at Trustsure Financial Services. Being a representative of this industry enables Charn to meet a variety of different people, particularly small business owners, who require extensive financial planning in life assurance and short term insurance.
FMI’s Business person Elect (BPE) product has recently undergone significant enhancements. These enhancements include the addition of a Capital Disability benefit to complement our existing temporary and permanent income protection offerings.
