Bedfordview, Johannesburg – The Guardrisk business is included in the rating of its parent company, MMI Holdings Limited, which has just become the first major insurance group to reach Level 1 Broad Based Black Economic Empowerment (B-BBEE) status under the revised Financial Sector Code (FSC).
This new rating is the result of the Group's strategic, committed approach to transformation, which, amongst other initiatives, included focusing on youth employment by increasing its support of youth development initiatives, building strategic partnerships with organisations with similar focus and aligning its CSI strategy to youth employment.
Another focus area was the support of small and black-owned businesses. This included empowerment financing, business development, and more importantly, providing these businesses with access to the market by directing more procurement spend towards black-owned and black-female-owned companies. Guardrisk's recent research initiative in association with the Centre for Financial Regulation and Inclusion (Cenfri) aligns well with the improvement in this focus area.
Cenfri's research recognised that the cell captive structure is suitable for black entrepreneurs or business wishing to enter the insurance market in a way that gives them control of the product offering and value chain, while being able to rely on the insurer to manage the compliance burden and provide technical support. This while building capacity and transferring skills.
An improvement in the Group's equity ownership also contributed to the shift to Level 1.