THE VOICE OF YOUR PROFESSION THEFebruary/March 2013 JOURNAL www.cii.co.uk/journal Credit where it’sHOW due FIRMS CAN TAP INTO TRADE CREDIT connectionFrench Ax m A chAir An henri de cAstries on why insurers must adapt to the new world order ProteCting the PubliTHE CIIC’S interest PROFESSIONAL STANDARDS BOARD February/March 2013 Brokers have a duty of care CONTENTS to provide the best advice to their clients. But true 32 professionals don’t do things because they have to, they do things because they want to. We pursued Chartered status because it’s a clear mark of integrity and professionalism and assures clients that we’re putting their needs first. 34 40 The Chartered Insurance Institute NEWS & COMMENT FEATURES 20 Aldermanbury London, EC2V 7HY 4 President’s letter 28-30 Hot topic – Home working 22-23 Trade credit Tel: (020) 8989 8464 As the Aldermanbury Declaration With rail fares rising and job A stumbling economy has led Stuart Williams, ACII Fax: (020) 8530 3052 turns three, your president looks opportunities shrinking, it is no to a rise in businesses needing Chartered Insurance Broker back at what has been achieved wonder increasing numbers of UK trade credit insurance. Sam Barrett Chief executive: Dr Alexander Scott workers are choosing to set up their looks at how firms can tap into Director, Cowens Survival Capability 6-10 News own businesses from home this growing market Should you wish to send your views, please email: National news from the CII [email protected] 36-37 Institutes in action – 24-25 Examinations 11 International news CPD masterclass Having recently completed the The Journal is the official magazine of the Chartered A look at the CII presence across The Manchester Institute is leading new CII Level 7 Certificate in London Insurance Institute (CII). Views expressed by the world the way with its CPD masterclass Market Insurance Specialisation, contributors or advertisers are not necessarily Ben Baker explains why he would those of the CII or the editorial team. The CII will 12-13 Regional news 42 Legal casework happily do it all over again accept no responsibility for any loss occasioned News from the local institutes The High Court has surprised many by to any person acting or refraining from action as a ruling firms in receipt of an FOS award 32-33 India result of the material included in this publication. can still claim through the courts Praveen Gupta outlines the The Journal is online at www.cii.co.uk/journal REGULARS crucial difference between (members and subscribers only) 43 Study room - A-Z sales and service, and offers a 14 Editor’s inbox and comment High net worth five-point plan for creating a Editorial enquiries: better delivery proposition [email protected] 16-17 The interview – 44-45 Professional development 020 7417 4763 Henri de Castries, Axa – Product recall 34-35 Behind the scenes Hardly a day has gone by in the last Kin Ly shadows insurance surveyor For advertising opportunities contact: 18 Discover Risk few weeks without news of another Lucy Chittenden as she performs Jacob Quagliozzi on Following a successful National development in the food scandal an assessment of West End theatre, 020 7417 4793 Apprenticeship Week in March, the across Europe the Trafalgar Studios or [email protected] CII reveals what the profession is doing to get in on the act 46-48 Roll of honour 39 Life and pensions Design: Redactive Media Group CII members that have achieved Stephen Lowe discusses the results 17 Britton Street 21 Chartered profile – Ageas professional distinction in recent of the UK’s largest research study etty London, EC1M 5TP Adam Clarke of Ageas tells us how into consumer attitudes towards G months Tel: (020) 7880 6200 achieving Chartered status fits housing equity withdrawal and the with his firm’s existing learning and 49 CII blog steps needed to make it a viable ISSN 0957 4883 development programmes With an exam to study for in April and option for retirees © 2013 Chartered Insurance Institute. a new gym membership to make use COVER IMAGE: COVER Average total net circulation 76,000 26 Local institute of, Peter Molloy wonders if he could 40-41 Professional profile – Aberdeen combine the two… Standards Board Aberdeen Institute president Featuring the work of the CII’s Debbie Mitchell talks to the Journal 50 Study room – Q&A professional standards board cii.co.uk/chartered 3 FEBRUARY/March 2013 THE JOURNAL www.cii.co.uk COMMENT AMANDA BLANC PRESIDENT’S LETTER As the Aldermanbury Declaration turns We’re Chartered because three, your president we believe in everything it looks back at what stands for. Our commitment has been achieved to developing the highest levels of technical skills and expertise is at the core of our business vision in an ever more competitive and commoditised market. When business partners and clients see that we are Chartered, they know that we are making that vision a practical reality. his March sees the three-year anniversary of the launch laid out by the declaration will become the entry point for anyone hoping to of the Aldermanbury Declaration, so it is appropriate that operate in insurance and we have made a great start in achieving that. we look at what has been achieved so far and how far the To have so many businesses signed up already is very encouraging but to initiative, and the industry, have come. sign up is one thing; to actually work towards meeting those standards is It was back in May 2009 that the Professionalism Task something else entirely. Again, the statistics are very encouraging. Force held its first meeting, with the aim of looking at ways the market could adopt more professional standards and, as a result, Making the grade instilT greater confidence among our customers, with the government and, Of the 30 insurers that have signed up, 57% have confirmed in writing that Neil Clutterbuck, ACII indeed, the regulator. they already meet the standards. Of the 163 broker signatories, 61% have Chartered Insurer Out of that task force came the Aldermanbury Declaration, conceived already reached their goal, with a further 10% set to do so by December. To Director, Underwriting and Technical and designed to provide both a starting point and target to achieve that have 60% of insurers and brokers that signed the declaration meeting the Allianz Commercial greater professionalism we all wanted to see. Remember, this was not standards now and a further 10% confirming they will meet them by the long after the financial meltdown of 2008, so consumer and government end of the year is a huge success and they should be congratulated for the faith in financial services had never been lower. investment and commitment they have made. We had to act and we did. This was not a CII initiative but a market But what of the rest? What you need to remember is that many insurers one, supported and guided by the CII. This aspect was absolutely vital as, and brokers have chosen to attain Chartered status for their firms and in without market-wide support, it stood little chance of success. So what, if doing so are deemed to have met the standards of the declaration. In total anything, has been achieved and have we made any real progress towards there are 144 Chartered firms – 22 Chartered Insurers and 122 Chartered achieving our goal of improving the general image of general insurance? Insurance Brokers. Chartered firms include some of the largest and most influential insurers and brokers and between them employ 25,000 staff. Strong support The market is clearly headed towards a more professional future. The first question we need to ask is whether the declaration received When we launched the Aldermanbury Declaration three years ago, support. On the insurer side, to date there have been 30 signatories, there was really no telling how the market would react and whether it including nine of the 10 leading insurers, which is an excellent would embrace the initiative. But looking at where we have come over achievement. As for brokers, 163 have signed up so far, which, when you those three years, it is clear the market has done more than adopt the bear in mind that many of the brokers that have committed have offices declaration. Between them the Aldermanbury Declaration and Chartered across the country, is again a brilliant result. status have become the standards to which all good insurance businesses Would I have liked to see more insurers and brokers sign up? Of course aspire and there will come a time, I am convinced, when what seems like I would and everyone who cares about our market would share that a huge effort and achievement now, will be the basic expectation of those sentiment. I would love to see any business operating in insurance to operating in insurance. To all those who have met the standards – well have achieved the professional standards demanded by the declaration done, you are at the vanguard. And to all those who have yet to get there but that is not going to happen overnight. Ultimately, the standards as – the rest of us are waiting. 4 cii.co.uk/chartered FEBRUARY/March 2013 THE JOURNAL www.cii.co.uk NEWS NEWS ciigroup@linkedin FOR THE RECORD twitter.com/#ciigroup FOR THE RECORD youtube.com/ciimedia BIBA aiming to meet the growth challenge CII expands international Eric Galbraith, chief executive Texts go electronic of the British Insurance Brokers' offering for 2013 The CII has launched study texts dictionary and read-aloud.