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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Industry Charters

Financial Services  Charter

Code Series FS800: Measurement of the Access to Financial Services Element of Broad-Based Black Economic Empowerment

Statement 804: The Measurement of the Access to Financial Services Element of Broad-Based Black Economic Empowerment as it relates to Short-Term Insurers

3. Product related Access - Products, Target markets and Key Measurement Principles of Access


3.1        Products and Target Market


3.1.1 A "sum insured" metric has been established as a basis of target measurement and performance across a broad range of short-term insurance sectors (but excluding cellphone insurance and consumer credit insurance that has been adequately covered elsewhere in the market).


3.1.2 The sum insured metric has been structured to target those areas of the population that have been previously uninsured. The metric has been broadly based on products aimed at individuals earning below the tax threshold, households with an income below double the tax threshold and Black small businesses and small Black farmers. The target market for individuals and households will be adjusted based on changes to the tax threshold.


3.1.3 The choice of products has been selected to meet the broader sector code objectives.  Qualifying short-term insurance access products are those designed to support the following areas and that meet the relevant standard. Products will be for the following areas: Low-income Housing Black QSEs and EMEs (as defined in the Codes of Good Practice on B-BBEE) Agriculture Infrastructure Co-operatives Low-income individuals


3.2        Standards


3.2.1 Product standards for each product category will be determined following the gazetting of this Code.


3.3 Key measurement principles


3.3.1 Measurement will be based on the number of active qualifying policies that meet the relevant product standards.


3.3.2 The key measurement of success is the product penetration into the target market and will be measured on the number of policies sold and active as at the date of measurement. The target is determined, based on the size of the market during 2011 and published by the Financial Sector Council.


3.3.3 The target is an industry target and not an individual company target. Individual company targets will be allocated based on the company's market share as at 31 December 2011.


3.3.4 Companies do not have to be measured against each of the areas in paragraph 2.  Companies may elect a single area or any combination thereof.


3.3.5 Where companies select more than one product type, the weighting will be pro-rated between the product types selected, i.e. where 2 product types are selected, each will have a weighting of 5 or, where 4 product types are selected each product type will have a weighting of 2.5.


3.4        Consumer Education




Consumer Education is the process of transferring knowledge and skills to consumers, future consumers and potential consumers for individual well-being and the public good. The intended outcome of the process is the development of consumer's knowledge and understanding of the financial sector and its products and services.  Consumer Education will include programmes that are aimed at empowering consumers with knowledge to enable them to make more informed decisions about their finances and lifestyles.


Target market


The target market for Consumer Education is the Target Market as defined for Access products.




Consumer Education standards will be determined following the gazetting of this Code.