Why is the CII launching another Chartered title?
Chartered status is recognised by consumers and businesses as the strongest evidence that a firm is committed to high standards of professional practice
81% of consumers (84% of HNW consumers) would choose a firm with Chartered status over one without – note where these figures have come from?
Holding Chartered status enhances a firm’s ability to acquire and retain quality talent, by demonstrating a commitment to continuous professional development and ethical values
How many titles do we now have?
As the professional body for the Insurance and personal finance sector, the CII aims to be as relevant to as many of those working in it as possible. Managing General Agents (MGAs) are an increasingly important segment, so the CII alongside the MGAA has worked to develop an accreditation that provides those working within the Delegated Authority sector to gain and maintain the expertise and professionalism required.
Doesn’t this add complexity and confusion?
The CII believes that excluding a growing segment of the market from having a Chartered title because they didn’t fit into the definition of an insurer or a broker, did not fairly represent the whole sector. By encouraging more individuals and firms to become professionally qualified and to promote their Chartered status to the public, they raise awareness of professionalism in the sector and trust in a united profession.
Why the title ‘Chartered Insurance Underwriting Agent’& when is an underwriter not an insurer?
The Managing General Agents sector has been growing, and despite being very much part of the insurance profession, and performing vital underwriting services for insurers, it was a business model that hadn’t been envisaged when the original concept of a ‘Chartered Insurer’ was invented.
Having the incredible luxury of having a royal Charter sometimes has its downsides. One of them is that the CII don’t get unilateral control over the titles their members hold. The CII confers its titles on behalf of the Privy Council – advising the sovereign according to well-established protocol and convention. And their ability to confer the title ‘Chartered Insurer’ depends on a set of eligibility criteria including their employment by an insurance company. Chartered status is all about public perception and transparency, so it wouldn’t be appropriate for someone to hold a title that implies they work for an insurer holding risk when in fact they underwrite on behalf of insurers who do.
So they (CII) had a problem they hadn’t foreseen: all those professional underwriters working for MGAs couldn’t strictly call themselves Chartered Insurers.
As the professional body for the whole Insurance and Personal Finance profession the CII couldn’t allow this unintentional gap to exclude a growing number of professionals, so they developed what became the new Chartered Insurance Underwriting Agent title. It is arguably a bit of a mouthful, and it doesn’t include the words ‘Managing General Agent’, which might seem a simpler and more easily-understood moniker. But what seemed simple and easily-understood when we created ‘Chartered Insurer’ turned out not to cover all future business models. So our hope is that this new title is both relevant and meaningful to those in the MGA sector, and also flexible enough to cover those who underwrite insurance in other (perhaps yet to be invented) business types.
What are the benefits of being Chartered for an individual or firm?
There are now 6 Chartered titles:
Chartered Insurance Broker/Brokers
Chartered Insurance Risk Manager (individual only)
Chartered Financial Planner/Planners
Chartered Insurance Practitioner (individual only)
Chartered Insurance Underwriting Agent/Agents
Is this just about revenue for CII?
Not at all, the growing MGA sector did not have a relevant title to reflect their importance within the UK insurance sector and this launch ensures individuals and businesses within that sector are now part of the united profession. The CII exists to improve public trust in insurance and personal finance. In order to pursue this goal, it needs to develop and promote professional standards across the entirety of the Insurance Industry.
Why is the CII creating a title for businesses that aren’t customer-facing?
Many people working in the insurance and personal finance sector are not directly customer-facing, but have an impact on customer outcomes. MGAs perform services on behalf of their principal, the capacity provider or insurer and have a meaningful contribution to the customer outcome. In addition, with the burden of regulation and demands on MGAs, the new Chartered title status is a symbol of technical competence and professionalism which in turn demonstrates that MGAs are taking responsibility to deliver a positive outcome for the end customer.
Moreover, an increasing number of MGAs are dealing direct with the consumer and or businesses.
What are the criteria for gaining this title as an individual?
Hold the Advanced Diploma in Insurance
Be a member of the Chartered Insurance Institute
Have at least five years’ sector experience
What are the criteria for gaining this title as a business?
At least one member of the board or appropriate management team must hold the Chartered Insurance Underwriting Agent designation, and all relevant members of that board or management team must be members of the CII
90% of staff involved in the ‘underwriting’ process and other staff with an impact on the end customer experience must be members of the CII
3 years’ pre-application trading, or one year with authorisation to trade at Lloyd’s
The firm must have in place an appropriate Professional Development programme, core values, business practices, a Diversity & Inclusion policy, and demonstrate Corporate Social Responsibility.
For the full criteria please view here
Why are MGAs allowed to apply for this title without the 3 years that other businesses have to demonstrate if they are authorised by Lloyd’s?
This rule applies to all firms who are authorised by Lloyd’s, not just MGAs.
The purpose of the three-year trading experience is to provide reassurance that the firm has some financial stability and standing. As a regulator, Lloyd’s assesses the financial standing of firms, and to be granted a license provides an equivalent or greater degree of confidence.
Have you had firms/ individual sign-up/express an interest in achieving this Chartered title?
Yes. There has been a very enthusiastic interest expressed by our MGA membership. The CII has been running pilots with two member MGAs and we hope to have them through the process in the first quarter of 2020.
What is the process for firms to achieve this new Chartered title?
The process is outlined in this document
What is the cost to individuals of achieving this Chartered title?
Chartered membership currently costs £230 pa, and there is a one-off admission fee of £37. This admission fee does not apply if they are already members of the CII and upgrading to Chartered.
There is no cost to an individual to convert an existing Chartered title (eg Chartered Practitioner, Insurer or+ Broker).
What is the cost to firms of achieving this Chartered title?
The annual fee for corporate Chartered status is:
£500 for firms with up to 10 employees
£1000 for firms over 10 up 50 employees
£1,500 for firms over 50 up to 250 employees
£2,000 for those with over 250 employees
The cost of joining up 90% of ‘underwriting’ staff and other staff with an impact on the end customer experience, see link
View the CII Terms and Conditions.