In November 2017, the Insurance Brokers Code Compliance Committee will be conducting an own motion inquiry to examine Code subscribers’ understanding of ‘competency’ and ‘professionalism’ and how these standards are achieved within their organisations.
As a Code subscribers, insurance brokerages will be required to respond to the inquiry by completing an online questionnaire.
The objectives of this inquiry are to:
- develop a better understanding of how Code subscribers define competency and professionalism
- gather information on how Code subscribers ensure competency and adequate training for relevant staff, and
- identify and promote good business practices for competency and training of staff and representatives.
The committee believes that the success of an organisation will have a correlation to both how competent and professional their staff and representatives are. Formal education may not completely provide staff with all the necessary skills required to provide services competently and they may need additional on the job training or mentoring to meet the particular standards identified by the organisation itself and the Code.
Since 2014, 8 per cent of self-reported Code breaches relate to competency and training and in 2016, self-reported Code breaches relating to competency and training made up
- 3.4 per cent of all self-reported Code breaches reported by micro organisations
- 13.6 per cent of all self-reported Code breaches reported by small organisations
- 3.8 per cent of all self-reported Code breaches reported by medium organisations, and
- 16.7 per cent of all self-reported Code breaches reported by large organisations.
Examples of self-reported breaches included ‘specific broking staff and authorised representatives [being] unable to demonstrate sufficient ongoing professional development’, ‘employee not completing their CPD within the year’, ‘following […] performance reviews, it was noted that one staff member had not received any training’, and ‘failure to keep proper record of training and qualifications completed by broking staff’.
At the end of October, the committee will send you instructions on how to submit your responses to the inquiry questionnaire via the online portal. These instructions will include your individual link and password. If you have any questions about the process, please email firstname.lastname@example.org’.