professional standards, protection insurance & the cii · a differentiator by the public •...
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Professional Standards, Protection Insurance & the CIIMelissa Collett – Professional Standards Director,
CII
Presentation for Protect Association
11 May 2018
Agenda:
1. CII’s strategic manifesto
2. Meaning of professionalism
3. Professionalism into practice – becoming chartered
4. Protection qualifications, designations, and CPD
CII’s Royal Charter
‘to secure and justify the confidence of the
public…in insurance’
3
It’s all about building public trust
4
Elements of Professionalism
Competence
Ethics
Duty of Care
5
Competence
6
Competence
• Having the skills and knowledge to
perform your role
• Completing continuous professional
development
• Having expertise validated by an
independent body
7
Lack of competence
• Fined or banned by regulator, eg:
• 2017 – adviser for selling unsuitable products and failing to disclose conflicts of interest
• 2015 – chief risk officer of Financial Ltd for not undertaking thorough risk audit
• 2014 – 3 senior executives of Swinton for insurance add-ons
8
Competence issues in protection?
• Training of call centre staff
• Managing customer data
• Underwriting pre-existing conditions
• Handling claims sensitively
9
Ethics
10
The Five Core Duties in the CII’s
Code of Ethics • You must comply with this Code and all
relevant laws and regulations
• You must act with the highest ethical standards and integrity
• You must act in the best interests of each client
• You must provide a high standard of service
• You must treat people fairly regardless of age, disability, gender reassignment, pregnancy and maternity, marriage and civil partnership, race, religion and belief, sex, and sexual orientation
Ethics in action
• Business objectives
• Training budgets and plans
• Internal comms – ‘tone from the top’
• Board agendas
• Feedback and complaints
12
Ethical issues in Protection?
• Managing conflicts of interests in a
commission sales-driven environment:
• Mis-selling unwanted cover
• Avoiding difficult questions
• Incentives to minimise disclosure
13
Ethics guides
http://www.cii.co.uk/m
edia/4823968/ethical_g
uidance_practical_gui
de_web.pdf
Duty of Care
15
Duty of care
• Mismatch of power between experts and
clients
• Not relying on ‘transparency’ alone
• Ensuring fees are appropriate and create
right incentives
• Helping vulnerable customers
16
Customer facing staff and team leaders
► The majority working towards Certificate-level or equivalent qualification
► All new joiners to complete Award-level qualification or equivalent, committing to a code of ethics
and CPD within 12 months of joining
Managers ► All working towards becoming Diploma qualified or equivalent
► Minimum Certificate-level qualification or equivalent
Senior technical roles
► All working towards becoming Diploma qualified or equivalent
► Minimum Certificate-level qualification or equivalent
Leaders
► To hold professional qualifications
where appropriate
► All to hold membership of an
appropriate professional body and
commit to CPD
Challenging Realistic Deliverable
Life & Pensions CommitmentSETTING PROFESSIONAL STANDARDS
Become chartered
18
Become chartered
19
The gold standard
Chartered Benefits – Customer feedback
A clear indicator of professionalism• 61% of SME business owners recognise Chartered as the best identifier
of professionalism
A differentiator by the public• 71% of SME business owners recognise Chartered status in Financial
Advice
• 48% recognise Chartered status in insurance
• 75% say they would be more likely to choose a Chartered firm
Source: CII online survey 2015-2017
2009 2010 2011 2012 2013 2014 2015 2016 2017
625
943
260
Chartered Financial
Planners
History of Chartered firms
Consolidation & re-grouping of subsidiaries
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Chartered Insurance
Brokers
22
138
178
2010 2011 2012 2013 2014 2015 2016 2017
Chartered Insurers
4
25
33 Approximately 14% market coverage:
• Financial Planning practices (c10,000 staff)
• Insurers (c22,000 staff)
• Insurance Brokers (c15,000 staff)
Chartered Benefits – Chartered firm feedback
Insurance brokersFinancial Planners
52%
70%
Source: CII Chartered firms survey - 2016
Quotes from the corporates…
Promoting Chartered Status
New branding – refreshed
Chartered marks
Chartered Body Alliance
Raising professionalism and trust across financial services
ITEM BENEFIT
1.Review of Criteria Better penetration of current titles -
appropriate for market developments and
corporate structures
2. Process Improvements Improve experience for firms
3. Proposition expansion Helping firms work towards Chartered plus an
MGA offering?
4. Promotion Target awareness more effectively
5. Protecting Chartered Ensure the titles bear scrutiny
Chartered – where next?
Review of criteria
Objective:
Maintain professional standard, while reducing complexity and
improving relevance
Ensure applicability between larger and smaller organisationsExisting criteria
•At least one board member to hold Chartered title
•Responsible member must be Chartered and a member of the
board or ‘Appropriate management team’
•Minimum of 25% advisers must hold Chartered Financial
Planner title (only applies to FP)
•Entire board + 90% of customer-facing staff to be CII members
•Core values and business practices that align with the CII Code
of Ethics.
•Access to a Chartered professional must be available to
customer
•An appropriate professional development programme.
For consultation:
• Improve perceived relevance
beyond qualifications focus
• Include standards for areas such
as Diversity & Inclusion
• Increase flexibility for firms going
through change
• Not an elite offering, a gold standard
• More often expected by public and other businesses
• Further public promotion planned
• Improved criteria and offering for Chartered members
Choose Chartered!
Summary
Insuring Women’s Futures
29
Insightful leadership
30
CII Health and Protection
Certificate in Insurance: Health and
Protection route• The Certificate in Insurance flexes to an individual’s career needs,
combining a core unit (IF1) with a personal choice of units across insurance processes and products.
• A typical Protection pathway includes completion of the Certificate using at least 2 from the following units: R05 (Protection), GR1 (Group risk), IF7 (Healthcare insurance products), P63 (Long term insurance business), P64 (Private medical insurance practice).
e.g.
• This gains the member designation Cert CII (Health and Protection)
IF1 R05 P63 Or IF1 R05 GR1
IF9
CII Life and Pensions
Certificate in Financial Services: Life
and Pensions route• The Certificate in Financial Services has two routes, including a route
for those in life, pensions and protection.
• This route consists of:
– LP1 (Life and pensions customer operations)
– LP2 (Financial Services Products and Solutions)
– LP3 (Life and pensions principles and practices)
i.e.
• This gains the member designation Cert CII (Life and Pensions)
LP1 LP2 LP3
IDDThe challenge facing firms
35
ASSESS IDD Portal
5 key requirements of the ASSESS IDD Portal
IDD Core Knowledge1
Management Control & Reporting for IDD
T&Cs Specific Knowledge3
Recording CPD4
Product Specific Knowledge
5
2
https://brokerassess.cii.co.uk/go/assess/about/
8 hours of CPD
CII Solution
37
• Non Life Risk
• Insurance Based Investment Products
• Life Risk
37
This will vary by role & organisation This will vary by role & organisation
If the combination of Product and T&Cs learning material when combined with the 8 hours of core
knowledge learning does not total 15 hours, then the shortfall can be made up with the likes of f2f
training, webinars, 1:1s etc)
Standard content for every user
IDDcore knowledge
Productspecific knowledge
T&C’s specific knowledge
• Ability to select content from
CII library
• Supporting CII wizard tool to provide
recommended learning
• CII e-Creator to allow you to simply
add the T&C requirements from the
products you distribute
e.g 5 hours of CPD e.g 2 hours of CPD
To ensure you comply the requirements of IDD, the CII solution provides;
CII and Protection: next steps
CII and Protection: next steps
• The world never stops changing so we mustn’t either
– What is missing for the protection professional?
– What should we change or emphasise more/less?
– How can we support professional standards and recognition for
you?
Passion – Modern – Relevant – Diverse – Build the future together!
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