How To Start Insurance Brokerage Firm In South Africa
What is an Insurance Brokerage?
An insurance broker is an intermediary who sells, solicits, or negotiates insurance on behalf of a client for compensation.
How To Start Insurance Brokerage Firm In South Africa
1. Choose carriers to represent.
Make a list of the insurance companies whose products and services you will offer to your clients. Even though you are free to represent as many or as few as you see fit, it’s a wise idea to select only a few in the beginning stages of your new brokerage firm, until things settle down and your processes become efficient.
2. Review General Agent contracts.
Contact the insurance carriers you wish to represent at your new brokerage firm. Speak to someone in the agent appointment or licensing department and explain your situation. Request a General Agent kit so you may review the standard arrangements each carrier makes with new brokers.
3. Find suitable office space.
Search for an office location in a respectable town/area, ideally in a high traffic area to maximize the potential of walk-in customers. The space must be large enough to accommodate an office for you, a suitably sized waiting area, a conference room large enough for a table that seats at least four people, and a secretary/receptionist station.
4. Set up your office.
After acquiring an appropriate business location, set up the interior layout of your office to maximize the available space and make the best use of the floor plan. Arrange the desks, tables, chairs, filing cabinets and other office furniture so the place looks professional and respectable.
5. Hire an assistant.
Starting your own insurance brokerage firm requires tremendous time and effort, and is a project that requires an assistant. Find someone who understands the nature of the insurance industry and who is able to help you with multiple tasks ranging from basic office maintenance to calling clients and scheduling appointments.
6. Start advertising.
Spend some money on marketing tools and materials to promote your new insurance brokerage firm. Place ads in local newspapers, record a radio or television commercial and post flyers on billboards. Consider sponsoring a community event to announce and celebrate your firm’s grand opening.
Frequently Asked Questions (FAQs).
How much do insurance brokers make in South Africa?
In South Africa, an insurance broker earns about 360 000 per year, or R 185 per hour on average. The average salary for entry-level workers in the area is R 231 000 per year, while experienced employees can earn up to R 484 000 per year on the salary scale.
How long does it take to become insurance broker in South Africa?
To become an insurance broker, you usually have to complete a VET qualification. In addition, several years of experience with a qualified broker are usually required before becoming an independent broker. Entry to these courses usually requires Year 12 and, as a minimum, employment with an insurance brokerage.
How do I become a registered broker in South Africa?
The SAIS requires at least three years of work experience in the financial markets industry to become a qualified stockbroker. Candidates must also take and pass a series of tests covering tax and financial legislation, portfolio management and other related topics.
How much does a broker consultant earn in South Africa?
The average broker consultant salary in South Africa is R 317 400 per year or R 163 per hour. Entry-level positions start at R 210 003 per year, while most experienced workers make up to R 4 560 000 per year.
What do you mean by insurance broker in South Africa?
An insurance broker is a specialist in insurance and risk management. Brokers act on behalf of their clients and provide advice in the interests of their clients. A broker will help you identify your individual and/or business risks to help you decide what to insure, and how to manage those risks in other ways.
What do I need to sell insurance in South Africa?
To become an insurance broker, you usually have to complete a VET qualification. In addition, several years of experience with a qualified broker are usually required before becoming an independent broker. Entry to these courses usually requires Year 12 and, as a minimum, employment with an insurance brokerage.
How do I get a FSP License in South Africa?
Briefly, the process of applying for an FSP license involves submitting an application to the registrar of the Financial Sector Conduct Authority. In order to become authorized, the entity would need to meet certain licensing requirements and has to comply with a code of conduct before obtaining their licenses.
How much do investment bankers make in South Africa?
The average investment banker salary in South Africa is R 294 000 per year or R 151 per hour. Entry-level positions start at R 294 000 per year, while most experienced workers make up to R 294 000 per year.
Who regulates insurance companies in South Africa?
All contracts of insurance and reinsurance business (as those terms are defined in the Insurance Act, see Question 3) are regulated by the Insurance Act, the STIA and the LTIA (as applicable).
Who is the biggest insurance company in South Africa?
In 2021, Old Mutual was the most valuable African insurance brand, with a brand value of 1.28 billion U.S. dollars. Second was Sanlam, with a brand value of 692 million. All the five companies presented in the ranking are based in South Africa.