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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Explain the structure of the insurance and investment sub-sector in South Africa 
SAQA US ID UNIT STANDARD TITLE
114954  Explain the structure of the insurance and investment sub-sector in South Africa 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 2  NQF Level 02  5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
8077  Demonstrate an understanding of the structure of the insurance sector in South Africa  Level 2  NQF Level 02  8   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for entry-level administrative and clerical personnel and category a financial advisors or intermediaries in the insurance and investment sub-sector. It provides a broad introduction to the financial services industry and the insurance and investment sub-sectors. The focus is knowledge, skills, values and attitudes in relation to the learner's own context and experience of the world of work.

The qualifying learner is capable of:
  • Describing the structure of the insurance and investment sub sector.
  • Identifying the role played by Lloyd's of London and its place in the South African insurance market.
  • Identifying some of the professional associations within the insurance and investment industry in South Africa.
  • Explaining reinsurance. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    Learners should:
  • Hold a GETC or equivalent qualification; or
  • Be competent in Communication and Mathematical Literacy at NQF Level 1. 
    		•

    UNIT STANDARD RANGE 
    The scope of this Unit Standard is:
  • The sub-sectors of the insurance and investment industry are Short Term; Long Term, Retirement Funding, Healthcare Benefit Administration, Trust Companies, Funeral Insurance, Sectorial Intermediaries, Financial Advisors, Re-insurance, Collective Investments and Friendly Societies.
  • The four major financial service groups are Stanlib, old Mutual/Nedcor, Sanlam and Rand Merchant Bank/First Rand/Momentum/Discovery.
  • The professional groupings include, but are not limited to the Association of Collective Investments (ACI) South African Insurance Association (SAIA), South African Financial Services Intermediaries Association (SAFSIA), Life Offices Association of South Africa (LOA), Board of Health Care Funders' (BHF), Insurance Brokers' Council (IBC), Institute of Retirement Funders (IRF), Black Brokers Forum (BBF), the Chamber of Financial Advisors (CFA), the National Funeral Directors association (NFDA), the Life Underwriters Association of South Africa (LUASA) and the Financial Planners Association (FPA).
  • Advice means advice as indicated in the FAIS legislation. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Describe the structure of the insurance and investment sub-sector in South Africa. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The sub-sectors in the insurance and investment industry are named and an indication is given of the kind of risk cover and services in each sub-sector. 

    ASSESSMENT CRITERION 2 
    Three different players are identified in the insurance and investment industry. 

    ASSESSMENT CRITERION 3 
    Business relationships among one of the four major financial services groups are named and illustrated visually to show the links. 

    ASSESSMENT CRITERION 4 
    The term Proprietary Insurance Company is explained with examples. 

    ASSESSMENT CRITERION 5 
    The concept of an intermediary is explained and an indication is given of the conditions for registration in terms of the FAIS legislation. 

    ASSESSMENT CRITERION 6 
    The role of the intermediary is outlined with reference to the service provided to the client and the industry. 

    ASSESSMENT CRITERION 7 
    The concept of financial advice is explained and an indication is given of the consequences of giving unqualified advice. 

    SPECIFIC OUTCOME 2 
    Identify the role played by Lloyd's of London and its place in the South African Insurance market. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The history of Lloyd's of London is researched and presented as a brief report. 

    ASSESSMENT CRITERION 2 
    The impact of Lloyd's of London on the world insurance market is explained with reference to research and setting standards for insurance. 

    ASSESSMENT CRITERION 3 
    The part played by Lloyd's of London in the South African insurance market is outlined briefly. 

    SPECIFIC OUTCOME 3 
    Identify some of the professional associations that exist in the insurance and investment industry. 
    OUTCOME NOTES 
    Identify some of the professional associations that exist in the insurance and investment industry in South Africa. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Three of the professional groupings in the insurance and investment industry are named and an indication is given of the role of each association. 

    ASSESSMENT CRITERION 2 
    The history of one of the professional associations is researched and an indication is given of its current work in a particular line of business. 

    ASSESSMENT CRITERION 3 
    Information about at least one of the associations is accessed from its Website or an insurance industry publication. 

    ASSESSMENT CRITERION 4 
    The benefits to be had from belonging to a selected professional association are outlined from the point of view of the insurance investment organisation and the employee. 

    SPECIFIC OUTCOME 4 
    Explain reinsurance. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The concept of reinsurance is explained and an indication is given of the purpose of this type of insurance. 

    ASSESSMENT CRITERION 2 
    Reasons why insurance companies buy reinsurance are identified for three different risks. 

    ASSESSMENT CRITERION 3 
    The concept of treaty reinsurance is explained with examples. 

    ASSESSMENT CRITERION 4 
    The concept of facultative reinsurance with examples. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by a relevant accredited ETQA or an ETQA that has a Memorandum of Understanding with the relevant accredited ETQA. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
    Learners are able to collect, organise and evaluate information in researching the history of Lloyd's of London and one of the professional associations. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are able to communicate effectively when explaining the structure of the insurance industry and the concept of reinsurance. 

    UNIT STANDARD CCFO SCIENCE 
    Learners are able to use technology effectively when accessing information from the Internet or similar publications to identify and describe the activities and benefits offered by a professional association. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 8077, which is " Demonstrate an understanding of the structure of the insurance industry in South Africa", Level 2, Credits 8. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  48783   National Certificate: Financial Services  Level 2  NQF Level 02  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.