The Chartered Insurance Institute (CII) welcomes increased focus on general insurance (GI) professional standards at the EU level.
This follows a 5-page open letter from the EU’s insurance supervisory body, the European Insurance and Occupational Pensions Authority (EIOPA) to the Organisation for Economic Co-operation and Development (OECD) on 30 May 2013, setting out its views on proposals tabled following a G20 summit.
EIOPA’s stance on training and qualifications is set out in page 4 of its letter:
“We support […] proper training and qualifications for staff who interact directly with customers […and] would expect similar standards to be adhered to by independent intermediaries, such as insurance brokers.”
“[This] is generally in line with provision on professional requirements in the IMD2 proposal and also a Report of Good Supervisory Practices regarding knowledge and ability of distributors of insurance products which we will be publishing later this year, which will include a minimum amount of Continuous Professional Development (CPD) to be carried out by distributors of insurance products.”
“From our perspective, we would see CPD as essential (rather than just as an option) for staff of financial institutions given the ever increasing level of financial innovation. In addition, we think it is equally important that staff training should also cover issues relating to ethical and professional conduct.”
Laurence Baxter, head of policy & research at the CII, said:
“The CII welcomes EIOPA’s position on training and qualifications stated here. It reflects the wider regulatory focus towards professional conduct and ethical behaviour, in which voluntary efforts like the Aldermanbury Declaration and Chartered status leave the UK well placed. We look forward to EIOPA’s upcoming discussion paper suggesting best supervisory practices for insurance knowledge and ability standards.”
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