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!