The CII has a flexible structure of education and assesment that will help brokers meet the expectations of the FSA's risk-based philosophy, says Steve Wellard
With 12 months to go before the start of full, statutory regulation of the general insurance market, professionals in all sectors are readying themselves for significant change. Indeed, individuals and firms across the market are already well into their preparations, with application forms to the FSA either completed or sitting at the top of a pile marked 'most urgent'.The mechanics of achieving and maintaining authorisation are only part of the burden that insurers and brokers must bear during 2004 and beyond. Of equal importance is adherence to the spirit of regulation. The FSA is increasingly rejecting a tick-box approach to its work and wants instead to see a genuine reduction in the risks that badly-run businesses pose to the public.
Lighter touchThis risk-based philosophy will see resources targeted where they are most required. If practitioners can palpably demonstrate their commitment to competent and ethical trading, they will benefit from a lightness of regulatory touch. If it is evident that they are lacking professionalism and capability, they will feel a much heavier weight from the regulator.The implication of this is that insurers and brokers will, to a significant degree, have to determine their own style and amount of compliance activity. The FSA will impose general requirements, but a great deal of the detail will be the responsibility of those being regulated. Individuals and firms must therefore assess what is expected of them and find the means to satisfy those expectations.The Chartered Insurance Institute (CII), as the premier professional organisation for the entire insurance and financial services industry, is committed to providing accessible, practical, relevant and affordable solutions to help the industry meet its compliance needs. Evidence of this came in mid-2003 when the CII unveiled the Qualifications Framework for general insurance. This flexible structure accommodates the needs of individuals and employers and provides a progressive route towards professional status.
Online learningIn 2003 the CII also developed the ed. concept, with broker ASSESS and insurance ASSESS, in particular, helping the sector to maintain competence through online learning and assessment facilities. This emphasis on maintaining competence and continuing professional development (CPD) within ed. is pivotal to the FSA style of regulation. The facilities allow CPD activity to be logged and recorded so that users can demonstrate compliance with the FSA regime.In addition to the CII's impressive portfolio of online and hard-copy CPD tools, CII members have access to regular events up and down the country which provide vital support to maintain and enhance competence. The next 12 months will see a lot of effort to meet FSA deadlines. The CII is supporting its members so they can look forward with confidence. This is a time of deep and lasting change, but the CII's commitment to supporting practitioners, members and the industry in raising professionalism, excellence and integrity will remain second to none.
