Become an Insurance Broker.
How to Become an Insurance Broker in South Africa
Insurance qualifications are in demand and the sector is open to youth.
As an insurance advisor, you help people and organisations secure their wealth while building your own.
Don’t Dismiss Selling Insurance: Be a Badass Insurance Broker
For most youth, the life of an insurance broker probably seems pretty dull.
Don’t we see ‘them’ all as grey suits and ties?
Let me tell you about my friend Steve from Durban.
When we met he was an insurance broker and I had just completed my Fine Art and Education studies.
Steve was a hobby artist, so he showed me his work and explained how he wanted to become a full-time artist.
His first works were not great, and I thought he’d give up.
But Steve was driven by his enthusiasm and vision of the life he wanted.
Selling insurance gave him the freedom to pursue his dream.
He was flush and would fly to the South of France for drawing holidays and take his daughter too.
His drawings improved by the same amount of miles he flew.
And of course, Steve knew how to sell.
Last I saw, Steve was running a successful art business and selling art internationally!
He succeeded as an insurance agent for two decades and then became more successful than the artists I studied with! Meh!
The moral of this story is obvious, right?
Moral: Who Dreams of Being an Insurance Broker? Anyone?!
Even the dullest appearing job may actually free unique, innovative and amazing souls.
The job isn’t who you are, it’s your vehicle to express what you can do until you are where you truly want to be.
Who knows, you may love the wild dynamism of insurance and then maybe you will stay.
Then again, maybe you’ll be like Steve and will have acquired the means to choose what’s next.
Insurance is a Vital Sophisticated Sector
I know a lot of youth are being drawn to the cannabis sector and Keep Climbing will post about opportunities.
But the lack of policy protections and a proliferation of mom-and-pop shops still makes the sector volatile.
Insurance, on the other hand, is very sophisticated.
According to the IMF:
“The South African insurance sector is large, complex, internationally active, and competitive.
Supported by high penetration and density of insurance products, the insurance sector has grown to account for 18 percent of the financial sector in South Africa.
The industry hosts an unusually diverse range of business models, including traditional participation-focused models, bank-led conglomerates, asset management focused groups, and technology-driven new entrants.
Even among large insurers, risk profiles vary significantly, which is unique relative to other major insurance markets.
Most large insurance groups are actively expanding their business both regionally and globally.” 17 Jun 2022
A Guide to Building a Career: Unleash Your Potential in the Financial Services Industry
Should I become an Insurance Broker? Insurance Brokers are in Demand
Are you looking for a sector that is very competitive and where you can accelerate your career journey?
Then consider insurance.
Insurance is a dynamic, essential field with many areas in which you can grow.
Do you catch on to details quickly, have a sixth sense when it comes to people and like to think ahead?
Then try learning about how insurance helps protect the future.
If you already have a passion for financial services and think you will enjoy working with clients to meet their insurance needs, a career as an insurance broker seems like the perfect fit for you!
Insurance brokers have the opportunity to work independently or as agents.
They can sell a wide range of short-term or long-term insurance products to individuals, businesses, and organizations.
Let’s explore the key steps and learning pathways to help you kick-start your journey as an insurance broker.
Key Skills and Attributes of an Insurance Broker
To thrive as an insurance broker, you need certain skills and attributes.
- An interest in financial services is vital, as it will drive your motivation to stay updated with industry trends and product knowledge. But you can learn this stuff, starting now! ;)
- Strong interpersonal skills are crucial for building a winning and trusting relationship with clients. You need to understand each client’s unique insurance requirements and show concern for their interests.
- Demonstrate a customer-focused mindset. This enables you to provide tailored insurance solutions that meet clients’ specific needs. You must be able to remember the details of products and make them relatable to clients so that they want them.
Qualifications for Insurance Brokers
The INSETA says that “insurance brokering is open to graduates and diplomates from various disciplines.
Tertiary qualifications in fields such as Risk Insurance, Business Management, Finance, or related areas of study can improve your prospects in this industry.
It is essential to obtain a qualification recognized by the Financial Services Board (FSB), which is relevant to the category of Financial Service Practitioner (FSP) you wish to be registered in.”
Learning Pathways: Qualify as an Insurance Broker
To embark on a successful career as an insurance broker, you can consider these three learning pathways :
1. Learnership plus accreditation by the Financial Services Board (FSB):
Engaging in a learnership program to obtain practical experience alongside theoretical knowledge can be an excellent entry point. This pathway allows you to gain industry experience while working towards FSB accreditation.
Youth must always be on the lookout for fake learnerships. A learnership must be aligned to a registered qualification and a learnership contract must be issued. Keep Climbing was called in to assist with a case where a youth who resigned from a PSG learnership was ordered to pay back the money. INSETA unfortunately, did not conduct itself ethically and failed to follow transparent protocols when dealing with the matter. We hope that they have now improved.
2. Certificate in Wealth Management (Level 4 and Level 5) plus FSB accreditation:
Complete both certificate programmes in Wealth Management and then obtain the FSB accreditation. This exposes you to insurance principles, risk management, and financial planning. According to the INSETA, these qualifications provide a solid foundation for a career as an insurance broker.
3. Bachelor’s Degree in Financial Planning and Management plus FSB accreditation:
If you want a more extensive educational background, pursue a bachelor’s degree in Financial Planning and Management. Adding FSB accreditation can provide in-depth knowledge and a competitive edge in the industry. This pathway allows for a deeper understanding of financial planning, investment strategies, and risk assessment.
Becoming an insurance broker: Career Journey
Becoming an insurance broker offers an exciting career path within the financial services industry.
By leveraging your passion for financial services, honing your interpersonal skills, and obtaining the necessary qualifications, you can excel in this dynamic field.
Whether you choose a learnership, pursue a certificate program, or earn a bachelor’s degree, remember that continuous learning and staying up-to-date with industry developments are essential for long-term success.
For further information and guidance, reach out to the Insurance Institute of South Africa and the Financial Services Board.
They can provide valuable resources and support as you embark on your journey to becoming a successful insurance broker.
Insurance Broker Industry Professional Bodies
Burial Societies
- Burial Society of South Africa (BUSOSA):
- Assists the Burial Society business to create sustainability.
- Provides education and training for entry into the industry.
- No website?
- South African Federation of Burial Societies (SAFOBS):
- Oversees the coordination, training, and education of burial societies and their staff.
- Website: www.safobs.org.za
Healthcare
- Board of Healthcare Funders (BHF):
- Representative body of the healthcare funding industry.
- Website: www.bhfglobal.com
Finance
- Association for Savings and Investment South Africa (ASISA):
- Represents the majority of the country’s asset managers, collective investment scheme management companies, linked investment service providers, multi-managers, and life insurance companies.
- Website: www.asisa.org.za
- Black Brokers Forum (BBF):
- Representative body for black financial advisers.
- Black Insurance Advisors Council (BIAC):
- Provides the insurance industry with skilled, informed, fit and proper financial services providers.
- Council of Retirement Funds for South Africa (BATSETA):
- Non-profit organization managed by a Board of Directors.
- Represents the interests of Principal Officers, trustees, and fund fiduciaries in the retirement industry.
- Website: www.batseta.org.za
- Financial Intermediaries Association (FIA):
- Represents South Africa’s independent brokers, including large and medium-sized brokerages and individual financial intermediaries.
- Website: www.fia.org.za
- Financial Sector Conduct Authority (FSCA):
- Market conduct regulator for the South African financial services sector.
- Website: www.fsca.co.za
- Financial Planning Institute (FPI):
- Recognized professional association for financial planners in South Africa.
- South African Qualifications Authority (SAQA) recognized.
- Website: www.fpi.co.za
- Institute of Loss Adjustors (ILA):
- Controls the professional standards and conduct of Loss Adjusters.
- Enforces a code of conduct and disciplinary procedure.
- Website: www.ilasa.co.za
- Insurance Institute of South Africa (IISA):
- Professional membership institute for the South African short-term insurance industry.
- Website: www.iisa.co.za
- Prudential Authority (PA):
- Regulates the financial soundness of financial institutions.
- Website: www.resbank.co.za
- South African Underwriting Managers Association (SAUMA):
- Protects the rights of the underwriter within their relevant industry.
- Website: www.sauma.org.za
- The South African Insurance Association (SAIA):
- Representative body of the short-term insurance industry.
- Website: www.saia.org.za
INSETA Supports Insurance Entrepreneurs
The Insurance SETA provides specialized entrepreneurship training, mentorship connections, and access to potential funding opportunities.
Unlock your potential and turn your dreams into thriving businesses with INSETA’s assistance.
Source: INSETA career guide
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