"Without a better alternative in place, it’s our concern that this change would create a harmful skills gap, affecting the public, consumers, and professionalism across our sector."
- Matthew Hill, CEO of the CII
Earlier this year, the Financial Conduct Authority (FCA) removed the specified minimum hours of training and development required for insurance and funeral plan employees.
This was announced alongside intentions to strip outdated or duplicated requirements from its insurance rulebook, in hopes of improving affordability and access for those who rely on insurance to manage risk.
The Chartered Insurance Institute (CII) has reported ‘significant opposition’ to the regulator’s new training proposals. Of those surveyed (605), 80% thought the ‘public perception of the insurance profession with suffer’ if the FCA removes its 15-hour requirement.
83% agreed or strongly agreed that ‘undertaking continuing professional development is essential for me to be viewed as a professional by my clients or customers’.
Insurance professionals have told the CII that without regulatory incentives, there is a risk of creating a harmful and widening skills gap. Abandoning the 15-hour requirement and leaving a vacuum in its place has been deemed a mistake that will harm the public, consumers and professionalism in the sector.
In a recent letter distributed to all CII insurance members, Matthew Hill, CEO of the CII, wrote: “We believe that while the current requirement leaves much to be desired, removing it without putting something better in its place sends the message that personal development and skills in insurance don’t matter.
“We believe that the FCA’s proposal runs counter not only to any sensible analysis of the key role of skills in driving growth and competitiveness, but also to the core values of the insurance profession. Without a better alternative in place, it’s our concern that this change would create a harmful skills gap, affecting the public, consumers, and professionalism across our sector.”
The CII has previously stated that its own CPD requirement will remain irrespective of the outcome of the FCA’s consultation.
