Insurance Institute of Zambia

The President’s Speech at the 1^st Professional Designations Conferment Dinner, held at Sandy’s Creation,

Conference Centre on 20^th June 2009.

The Guest of Honour

The Governing Council Members

Distinguished Ladies and Gentlemen

All Protocols Observed

I would like to welcome you all to this Professional Designation Conferment Dinner, this is an historical day

in the insurance industry and the nation at large, as we are witnessing candidates who shall be conferred

with Student membership of the Insurance Institute of Zambia (SIIZA), Ordinary member of the

Insurance Institute of Zambia (MIIZA), Associate of Insurance Institute of Zambia (AIIZA) and Fellow of the

Insurance Institute of  Zambia (FIIZA).

Congratulations, to all candidates.

All members must take ownership of these qualifications and display the Certificates in their offices as a

mark of professional excellence and commitment to professional development. We should take a leaf

 from other professionals such as, Lawyers that proudly display the Certificates to assure their clients

that they are committed to serve them better.

The Guest of Honour, Ladies and Gentlemen, I would like to take this opportunity, to warm employers

that employ non professionals that it is an acceptable in modern business environment, as it

disadvantages the would be consumers of insurance and assurance services. Even in their

advertisements for employee recruitments, Insurance qualifications must take precedence to other

qualifications, both academically and professionally. The institute now has a pool of these professionals.

The institute has received numerous complaints from its members, that some employers do not recognise

 their qualifications. This is a very unfortunate state of affair. Moreover, students pursuing insurance

courses are not given opportunities to get practical experience through attachments. Let us encourage

upcoming professionals.

To the candidates, I would like remind them that the above qualifications require one to be undertake

compulsory Continuous Professional Development (CPD) and compliance with a Code of Ethics that

has been developed. Further Guidelines would be circulated as soon as consultations going on

between Insurance Brokers Association of Zambia (IBAZ), Insurers Association of Zambia (IAZ, The

 Zambia Insurance Business College Trust (ZIBCT) and the Pensions and Insurance Authority (PIA),

are concluded.

In conclusion I urge all the members to participate actively in the activities of the Institute, either as

 members of sub-committees or in the organization of various events lined up.

Thank you for your attention and enjoy the splendid evening.

Justine Kabwe

President.

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The Guest of Honour

The Governing Council Members

Chief Executive Officers

Distinguished Ladies and Gentlemen

Members of the Press

I would like to welcome you all to this occasion

The insurance industry has under gone through various transformations; from the 1940’s to 1967 it was a liberalized

market with a number of insurance companies competing. 1968 to 1991 it was a nationalized market, then from 1992

to date again liberalized with the formation of the Pensions and Insurance Authority as the sole regulator of any entity

wishing to transact insurance, Pensions or any other activity related to insurance.

In April 1981 The Zambia State Insurance Corporation Limited set aside by then, a sum of K750,000 for the establishment

 of the Zambia training centre in general, which was to operate from the ZSIC Pavilion at the Lusaka Show Grounds.

A similar branch college to cater for the Copperbelt was also to operate from the ZSIC Pavilion at the trade Fair grounds.

This was the First of its kind in the Southern and Central Africa.

The establishment of the college followed a Technical and Training Agreement signed between Messrs J.H Minet of London

 and Management of ZSIC and the then Zambia National Insurance Brokers (ZNIB) who were jointly going to run the

Zambia Insurance Business College as a Trust. The College was set up to lessen the number of staff who were going

outside the country for insurance training. Thus it started offering Certificate courses in Business Studies, Diploma in

Insurance  Studies with a four month full-time Diploma in Insurance Management which was expected to attract foreign students.

INSURANCE AND KNOWLEDGE

Human knowledge and behaviour in relation to insurance, forms a relevant part of the studies concerning the reaction to risk

 i.e. a unfavorable situation. The varieties of human knowledge which affects the operations of insurers and the consumer’s

insurance purchase decisions are multitude and at the same time, extremely limited in extent.

Scientific knowledge, Distinguished Ladies and gentlemen, is considered by many to be the most accurate and therefore

‘reliable’ form of knowledge. Scientific knowledge is that which is derived from observation, study and experimentation.

King Solomon in the Bible once said ‘knowledge is vanity and vexation’. Now the limit of scientific knowledge in the

field of insurance are quite narrow because the variables are so numerous and the parameters constantly changing.

The only consolation is the expectation of homogenous exposure in those risks. That is why experience cannot be divorced

from the real knowledge of insurance.

The Guest of Honour, insurance exists because people are concerned about financial security and the consequences

of adverse economic conditions. The basic factors that motivate a person to buy insurance are seemly rather negative

and consequently, insurance companies make use of that motivational philosophy in their selling activities. Let us imagine

a world without insurance; there would be no risk taking, without risk taking , no businesses, hence, no innovation leading

 to the death of our modern world. Insurance is what enables the modern world to get on with life. Hence, the motto of the

 Institute; the silent pillar, the peace of mind.

So this really is an appropriate time in which to be talk about professionalism. The role of the professions, what it means

 to be a profession, how it conducts itself and its systems of regulation, our very license to operate, which is being publicly

 questioned and re-examined.

Perhaps I should start by asking what is a profession and what do we mean by professionalism?

The generic term profession is derived from the latin word; pro-frater: to confess, own or acknowledge and goes back in

history and originally was understood only in a religious sense when it was used to describe someone who made a public

 declaration of service to God. Today, this sense has been secularized and transformed to being about a duty of service to

 the public interest.

What constitutes a profession?

What is the 21^st century definition. A profession is not a business. A profession is a body of people defined by its concern

 with commanding respect and building trust by acting first and foremost in the interest of clients and the public, a duty to

 subordinate personal financial reward to responsibility to others.

Today the accepted distinguishing marks of a profession are the requirements of:

• extensive formal training and life-long learning  through continuous Professional development (CPD)

• admission to practice by qualifying licensure

• compliance with a code of ethics

• a system for discipline of its members for violation of the code of ethics and, notably,

• an obligation on its members, to conduct themselves as members of a learned, disciplined and honorable occupation.

Professionalism - trust and demonstration

Professionalism, on the other hand, is about individual modes of behaviour that command respect and build trust. It is about

excellence in service as measured by recognised standards. It is about delivering services or working to standards that meet

the needs of and are expected by our clients. Such behaviours are indeed a necessary part of belonging to a profession.

It is the requirement to continually reinforce and demonstrate our professionalism, not merely assert it through a one-off qualification.

It is therefore no longer enough for professions to say to the public ‘you must trust me’, today we must earn that trust and demonstrate:

clearly, openly and often, why that trust should be given. It is the foundation on which rests the integrity of our professional reputation.

The future of our profession as risk carriers, lies in yours and mine.

Job Profile & Competency Framework

To reinforce this need of encouraging professionalism in the practice of insurance, the Insurance Institute of Zambia has

 developed A Job Profile and Competency Framework,  to provide an effective externally benchmarked tool for

insurance professionals and employers alike.

It signposts the minimum levels of competence required for each role in the key critical areas of Pensions

Administration, Underwriting, Claims, Insurance Broking, Reinsurance, insurance consultancy, Loss Assessment

and Adjusting as well as risk surveyor.

One would need to demonstrate a clear progression in the insurance course structure,  Experience or any equivalent,

to create individual profiles and facilitate the planning of future development areas which can be used to continue

building successful careers in Insurance.

What is it?

The Competency framework is one by which one achieves the requisite levels of technical knowledge and understanding.

With the impact of statutory regulation, it is the wish of every employer to see to it that employees continue to

demonstrate, enhance and maintain their competence in order to remain afloat in this competitive business world.

The Job Profile relates to the actual Job descriptions and accountabilities,   it is the core activity which will help the

 insurance sector and drive the development of new products and services which are relevant to market best practice.

It shall:

-                            support of internal company specific models

-                            promote both personal development and professionals standards

-                            contribute to the delivery of improved customer service.

The Job Profile and Competency frameworks shall be managed on a continuous consultation basis with insurance

experts from the market to ensure that the framework is  kept relevant and up to date.

It shall facilitate to conduct:

·                           a 'skill gap analysis'

·                           to determine what new skills are needed

·                           what current skills need to be enhanced,

·                           what resources are available to support the acquisition of knowledge or skill

·                           what learning methods are preferred

·                           what development activity are being done as part of employer programmes.

The membership professional statuses to be conferred will provide an important external benchmarking and shall fit

 within an overall national standards framework.

In addition members of the Institute shall benefit from a range of additional support services which can be used to

 maintain and enhance competence, amongst which:

-     assistance to achieve  professional recognition among employers and colleagues by the use of designatory

       letters after their names.

-     Conducting seminars, workshops, public discussions etc

            -     National voice on insurance matters

-     To provide an Access to information on the Zambian insurance market.

-     To initiate networking at National and International events, such as Conferences.

-     To provide Coordination in terms of Continuous Professional Development (CPD).

-     providing opportunities for members to participate in the on going legal and self regulatory development,

      competence and compliance.

The Guest of honor, allow me to briefly outline the salient requirement for confirmation:  

1.         STUDENT MEMBER OF THE INSURANCE INSTITUTE OF ZAMBIA (SIIZA)

-           must be a paid up member

-           A student is construed to be one pursuing an insurance course structure and is not in full time employment,

            either locally or internationally..

-           person is eligible to apply to be registered as student member of the  Institute provided that the Council

             shall satisfy itself that:

-           must be fully paid up member of the institute.

-           An applicant whose application is approved by the Council shall, upon signing the declaration and

payment of the appropriate fees, be registered as a member,  shall be entitled to use the designation letter “SIIZA”

which is referred to as “Student member of the Insurance Institute of Zambia.”,  after his/her name.

Key comptencies acquired would be ; basic insurance principles and practice in both Long term and short

 Insurances, the legal and regulatory framework and the various organizations and roles of the insurance market.

Knowledge and understanding of the role of underwriting including identification, assessment and acceptance

of risk, rating and relevant financial factors.

To provide knowledge and understanding of the claims handling process including notification, assessment,

settlement and associated financial factors.

RATIONALE

-                                                                      Encourage practitioners to advance their insurance knowledge

2.         ORDINARY MEMBER OF THE INSURANCE INSTITUTE OF ZAMBIA (MIIZA)

-     must be a fully paid up member

-     these would have gained the necessary experience in insurance practice not less than two (2)

-     or Completed of the any Certificate in Insurance by attending tuition and examination offered by any TEVETA registered

        Institutions or any other institution recognised by the Council of the Institute.

-     Upon approval and signing the declaration, payment of appropriate Fee, be entitled to use the designatory letter “MIIZA”.

-     A Certificate shall be given as evidence of having satisfied the requirement for election.

KEY COMPETENCIES ACQUIRED :

• knowledge and understanding of types of products, policy documents, claims forms, policy cycles, compulsory
•  insurances, co-insurance, contract certainty principles and use of reinsurance
• Risk perception, exposure and underwriting; Understand the theory of and practice of exposure calculations ie
•  estimated maximum loss (eml) or probable maximum loss(pml) and acceptance of risk and attendant capacity
• Agency rating – what they mean and how they work, accounting process for insurers and analysis and managing
• portfolio risks.
• Basic knowledge of capacity to contract and how it affects insurer underwriting capacity and rating

Claims

• Understanding the management of claims in relation to claims reserves techniques and rules

-           these are eligible to apply to the Institute to use the above designation (MIIZA) against their name. To encourage

            them participate actively in the development of the insurance industry the are required to submit a mandatory

            Continuous Professional Development (CPD) loggings. That is activities which a member feels has contributed to the

             advancement of their knowledge in insurance, industry and the nation at large.

3.         ASSOCIATE OF THE INSURANCE INSTITUTE OF ZAMBIA (IIZA)

A candidate for election by the Council as an Associate of the Institute shall:

• Such applicant for election must have been practicing insurance and has acquired an Advanced Certificate or
• Diploma in Insurance or any equivalent qualification.
• Must be a fully paid member of the Institute
• Associates so shall be elected and entitled to use after their names the words “AIIZA” which is referred to as
• “ Associate of the Insurance Institute of Zambia.”#
• A Certificate shall be given as evidence of having satisfied the requirement for election, prescribed by the Council.

Key Competencies acquired:

• a knowledge and understanding of basic statistical concepts relating to the insurance  environment and the

estimation of risk; • an awareness and broad knowledge of the environment in which businesses operate;

• a detailed knowledge and understanding of the economic, ethical, operational and financial framework applicable

to insurance companies; • a knowledge and understanding of the principles of reinsurance.

• Able to use concepts, theories and ideas at a strategic level for making judgments,  tailored to meet challenges
• in emerging situations.

It is evidence of the purpose, commitment and ability and a passport to a successful and fulfilling career, deserve to be

 conferred with Associate of the Insurance Institute of Zambia (AIIZA) status and to use the designation ‘AIIZA.

FELLOW OF THE INSURANCE INSTITUTE OF ZAMBIA (FIIZA)

This is the highest level of professional qualification in insurance and will be awarded after someone has been an

Associate and has acquired the necessary experience.

Every candidate previously elected as an Associate of the Institute or any other institutions as may be prescribed by

the Council shall automatically be upgraded to Fellowship provided such person shall have:

-     A fully paid up member of the Institute

-     Attained the age of 21 years and have been practicing insurance in Zambia or such other country or territory

as the Council may decide. for a period not less than three (3) years excluding any period spent as full-time student,

 immediately prior to the date of application.

3.3  Such Fellows either Honorary or by Examination after election, shall respectively be entitled to use after their

names the designations “FIIZA” which may be refereed to as “Fellows of the Insurance Institute of Zambia.”

3.4  A Certificate shall be given as evidence of having satisfied the requirement for election either by qualifying

examination or other wise may from time to time be prescribed by the Council.

KEY COMPETENCY ACQUIRED

-           Able to distinguish business from all other organizations, Identify fundamental flaws of the stakeholders approach

             to business;

-           They appreciate the importance of business ethics, What makes something an ethical issue and why and the

              implications of fiduciary responsibility.

-           Able to manage conflicts of interest, Principles of remunerating people on ethical basis-     appreciate why a

               business should have true, fair, realistic financial statements

-           knowledge of corporate governance issues and identify the nature of shareholder responsibility, Examine ethical

             considerations of Dividends, payments executives remuneration.

-           Able to use appropriate systems and structures to strengthen Corporate Governance and its benefit to the

             business;

This designation would allow lifelong learning through Continuous Professional Development (CPD) loggings.

-           Supports competence and compliance activity

Distinguished Ladies and Gentlemen let me not bow you with a a lot of words but the Institute is determined to promote 

 efficiency and improvement in the practice of insurance , To promote and maintain internationally

comparable standards of professional ethics by its Members and qualifications;

The Institute has already started receiving requests from the internationakl market, Hong kong,

Botswana to name but a few.

Lastly, we are in the process of organizing an Award giving ceremony  for various personal and institutional

achievements which has contributed to the development of the industry and the nation at large.

Please enjoy yourself and thank you for your attention.