The Study Regime

Brokers are feeling twitchy. Why? From January 2005, when the FSA swings into action, those selling general insurance will need to prove they are fit to sell general insurance products.Right now, experts say that there are thousands who are far from making the grade. They need to wake up and take action if they are to continue to trade.But, deciding the right strategy is far from easy. A host of options are available for brokers ranging from professional qualifications to coaching from consultants. It costs money and they are, as yet, unproven in their ability to meet the standards of the new regulator.That said, the clock is ticking. Leaving it much later will be too late, says Sam Roddan, a director with training and competency consultant Robin Wood Associates. "Too many still have their heads in the sand. It is essential to be proactive as brokers will need to prove their staff meet competency requirements before the new regime is operational."She is currently working with Biba and the CII on brokerASSESS, a recently-launched system which provides online support for brokers as they gear up for the regulation. The system is accessed via 'ed.' the CII's online learning resource. The institute already offers similar ASSESS programmes aimed at IFAs and insurers and, following work with Biba, it is targeting brokers.BrokerASSESS takes a risk management approach, based on recent case law and current market practice to provide a comprehensive training and assessment tool produced specifically for brokers.Benefits include case studies that allow staff to question and review their own practice The system also includes a section offering guidance on job specifications and other record-keeping requirements."It's relevant to brokers' everyday business, they'll find it practical and affordable," says Roddan, who along with colleagues at Robin Wood Associates, helped to design the programme. Prices are set at £120 per user per year from January 2004, but there is currently a price reduction - £95 per user per year. Where there are more than ten users discounts can be obtained.While brokerASSESS contains extensive questions and answers, including multiple choice sections, it is not part of a formal examination syllabus.

Regular assessmentAccording to Roddan, this is a separate, although complementary issue."The FSA did look at whether examinations could be valid for training and competence (T&C) requirements, but what is actually needed is regular assessment. Professional qualifications add enormous value to a broker's business, but they do not mean it is necessarily being run compliantly."This view is backed up by CII spokesman Steve Radford. "An exam is a snapshot, a badge. The CII has an excellent reputation, we're known as the insurance industry's provider of qualifications and for setting standards, but our ASSESS system, which is not exam based, is there for training and competency. Those taking ASSESS, however, will find it can prove very helpful in working alongside an examination syllabus."But Radford, along with a number of other commentators, says studying for examinations will become far more commonplace under the new regime."There are more people already doing this and the numbers are going to rise. This ranges from staff in call centres to those wanting to achieve FCII or chartered broker status. And, with the new examination model we have just launched, there will be more opportunities to put letters after your name - from certificate level upwards - and a more flexible way of selecting subjects."The new framework for the CII's qualifications was revealed at its recent conference in London. According to Radford, it follows the widest consultation the CII has undertaken to get to grips with industry organisations and individual needs.The result is a set of qualifications based on a modular structure. Current CII exam students will have a seamless transfer to the new framework, which will be implemented in 2004. Existing subjects have been incorporated within the new structure, which means candidates can continue their studies unchanged. This ensures that they are not disadvantaged by the new framework being introduced.Candidates will be able to choose from an initial range of 46 modules.This allows them to develop their technical knowledge and understanding in line with their career progression, rather than be obliged to follow a rigid pre-set learning programme.Rather than the need to pass a set number of exams, candidates will in future need to achieve a set number of credits instead. The value of each subject credit will differ according to the complexity and level of assessment, while compulsory subjects will remain within each qualification level.The institute is currently on a major drive to promote the new structure, with all current students receiving an initial letter and explanatory brochure. This will be followed by personalised individual learning statements which will clearly outline to each student their position in relation to the new scheme, to enable them to select the most appropriate subjects for the future. A series of roadshows will also take place around the UK before the end of the year.The Institute of Financial Services (IFS) has also been on a marketing drive to push its courses, which range from those aimed at call centres to a degree run in conjunction with the University of Manchester Institute of Science and technology (UMIST).IFS head of PR and marketing Tim Fox says: "Qualifications can provide a useful objective indication of achievement, but must also be backed up by internal systems to assess occupational competence in regulated activities."There is a trend towards competence-based development rather than the pursuit of traditional qualifications. The ability to use components geared to specific activities alongside effective in-house assessment of competence is of growing interest, particularly to employers."Insurers are also urging brokers to up the ante when it comes to training and competence. AXA broker development manager Colin Calder says an integrated approach is essential. "Brokers need to be highly skilled and this is where the CII and qualifications come in. Where insurers can help is with management issues and this is why we provide facilities such as AXA Campus and the AXA University in Bordeaux."Last month, Calder was with a group of 24 brokers in France, where he says the focus was on how brokers could take their businesses forward.But, while those selected to go were part of the insurer's Premier Partner club, he says training and competence was a cause of anxiety."No one at the university was asking where they should start when it comes to setting up a T&C programme, but there are plenty in that situation."AXA Campus, which is an online training programme, has a link into the CII site and Calder says it too is complementary to more technical training offered by the institute."Campus has been a major investment for AXA, but I think it's made us one of the leading providers in the field. Apart from the online resource, we also provide training clubs - there are 12 throughout the UK - and regular contact with trainers."There are some 250 courses, both technical and soft skills and it also allows brokers to tally up continuing professional development (CPD) points."Since its launch two years ago, we've found Campus has created a strong community among its broker users. They are taking T&C seriously and while there are concerns, I feel confident they won't have problems," he says.While AXA's top brokers may have T&C worked out, it is also a crucial issue for those at lower levels, such as for those working in call centres.Kwik-Fit Insurance is one company that is up to speed. HR director Keren Edwards says all 850 staff at the broker, which is based outside Glasgow, undergo thorough training and this provided both to meet T&C needs and as a retention tool."There is competition for staff where we're located. A good working environment is essential as is offering the best training."New recruits undergo about eight weeks basic training and then join the so-called cubs team, where there is support and easier targets to achieve.Kwik-Fit Insurance has 11 in-house trainers and 'coaching champions' to ensure training is ongoing and that motivation remains high.

High turnoverKwik-Fit Insurance's approach is not usual in the call centre sector - but all must now look to raise their game. This is going to mean pressures on brokers of all sizes.And as Richard Sheikh, the chairman of commercial broker Camberford Law, points out, some staff will always be more motivated than others."Those who are ambitious will want to take exams, and encourage them.But, let's face it, the insurance industry as a whole has high turnover among its admin staff and while we would like everyone to be qualified, not everyone is career minded."This is why it is also important to run in-house training which is appropriate - and it is increasingly important for brokers to set time aside to do this, even though they may be already busy running their businesses."Sheikh believes that brokers who are unable to set up their own training departments and programmes will look to networking. "I see big expansion in this area. An umbrella organisation to provide T&C services has to be the solution for smaller firms."The Broker Network, led by Grant Ellis, is already high profile in this area and ex Biba chief executive Mike Williams is currently touring the country with roadshows for his start-up network Total Broker Solutions.As the arrival of the FSA moves closer, it is becoming increasingly obvious that all brokers will be required to make some changes and some will need to make a radical shift to meet T&C requirements. But, there are solutions out there, and by increased take-up qualifications, broking is set to shift closer to becoming a profession.

INSURANCE QUALIFICATIONS1) THE NEW RANGE FROM THE CII- Certificate in insurance - Cert CII _ a core level suitable for those entering the industry who need an essential basic knowledge of the market, key disciplines and products- Diploma in insurance - Dip CII _ recognising the technical development achieved by those with a growing understanding of the industry- Advanced diploma in insurance - ACII - demonstrating professional level knowledge, understanding and market expertise.2) CHARTERED QUALIFICATIONS FROM THE CII- According to the institute, chartered status is the most prestigious level of professional achievement in the insurance industry. To become a chartered insurance broker, an applicant must abide by a strict, professional code and undertake a programme of continuing professional development (CPD). He or she should first attain associate status and will then need a minimum of five years' experience in the industry and have completed three years' CPD.- The CII has two other chartered titles: chartered insurer and chartered insurance practitioner. It is possible to change a title if the individual changes job or function, although only one title can be held at a time- Associate status - the ACII - is obtained by passing ten examinations (from a menu of 31 ACII subjects). The ACII is the industry flagship professional qualification and equates to degree standard. Typically it takes three to four years of part-time study to complete the ACII. The most senior membership status is a fellowship (FCII), which is achieved through dissertation. An FCII can also apply for a chartered title.3) FOR THOSE STARTING OUTi) The foundation insurance test (FIT)A single subject course comprising a course book and test run by the CII. It covers how the insurance market works, fundamental risk and insurance principles and core personal and commercial products. Candidatesreceive a record of achievement.ii) The certificate of regulated general insurance (CeRGI)A single two-hour examination from the Institute of Financial Services which can be taken in driving test centres across the UK on via computers.Covers risk and role of insurance, regulation and supervision, legal principles, underwriting and claims among other topics.iii) NVQs and modern apprenticeshipsModern apprenticeships are work-based training with an employer. They are paid either a wage - if they are employed - or a training allowance.The apprenticeship will involve working towards a national vocational qualification (NVQ), key skills and a technical certificate. A range of general insurance topics are covered and trainees also study customer service. The programme also includes an exam in the foundation papers from the CII.4) DEGREE OPTIONSA number of universities offer degrees in insurance and/or risk management.These include Nottingham University Business School, City University in London and UMIST. The degree programme offered by the Institute of Financial Services and UMIST is a BSc and covers risk financing and insurance management.