Chartered Insurance Brokers
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A new era for insurance broking
In 2007 the insurance broking sector enters a new era of professionalism thanks to the arrival of Chartered status for firms
Recent changes in the insurance market directly impact the insurance broking business.
It’s tougher than ever. FSA regulation. New distribution channels. Transparency and disclosure. Consolidation and competition. The growing prevalence of fee-based remuneration.
Professional brokers have responded to the challenges of a dynamic market by raising standards of knowledge, capability and ethical practice.
In other words, the professionals have become more professional.
In many instances, firms have improved their overall performance by encouraging staff to enhance their skills, with CII/Insurance Broking Faculty membership and qualifications often at the heart of their learning activity and continuing professional development.
The pinnacle of individual achievement is the award of ‘Chartered Insurance Broker’ status. To-date almost 2,000 individual brokers have attained this title, with many more currently working towards it.
Now you can distinguish your business from the crowd (and so will your customers)
To support leading firms in the broking sector, and to recognise their adherence to the highest standards of professional practice, the CII has secured agreement from the Privy Council to enable firms to call themselves ‘Chartered Insurance Brokers’.
This corporate Chartered status is of major significance. It will reinforce the importance of professionalism in a fast-moving and competitive market. It will also help place broking firms on a par with other professional practices, such as accountants and solicitors.
Chartered status is well established as a trusted symbol of professionalism. It will carry weight with other professional organizations and distinguish broking firms from their competitors and peers.
It will also help firms attract and retain the best staff. Talented professionals want to work for ambitious, principled organisations, and Corporate Chartered status is a clear indicator of the professional standing of a potential employer.
Corporate Chartered status is sure to have resonance with the Regulator, signposting professional achievement and commitment to high standards of practice. And as levels of professionalism rise across the sector, it should encourage movement towards “lighter touch” regulation, reducing the compliance burden.
Genuine professionalism has never been so valued – or necessary. The Chartered titles awarded by the CII are steeped in history but they remain just as relevant in today’s market. They remain the “gold standard” of excellence and integrity.
How it works in practice
Broking firms which meet the criteria laid down for Chartered status will, once approved, be eligible to use the title ‘Chartered Insurance Brokers’ in their business dealings
They will be authorised to:
- Use the term ‘Chartered Insurance Brokers’ on their business stationery, promotional materials and company signage
- Describe themselves in these terms in any communications that they produce
- Display a certificate at each of their branches highlighting their Chartered status
Full guidelines relating to usage can be downloaded here, or from the downloads section at the bottom of the page. Note: Electronic marque image files will be supplied by CII Customer Service on successful application.
Chartered firms will be listed in an online ‘Corporate Chartered Title Directory’, to be launched later in 2008. This will list all firms holding the Chartered Insurance Brokers title together with full contact details and a description of the typical classes of business dealt with. It will be available to the public, and will be viewed by individuals and businesses alike.
To mark the arrival of Corporate Chartered Insurance Brokers status, the CII will be undertaking an extensive ongoing communication campaign. We will promote the value of Corporate Chartered status via the national press and other media channels, informing all types of insurance consumer of its introduction and relevance.
This will educate buyers on the standards of practice to which Chartered firms adhere, as a factor to consider when choosing their insurance broker.
Applying for Corporate Chartered status
To become a Chartered title-holder, three principal criteria must be met:
- A minimum of 50% of Executive Directors or Partners need to be Chartered title-holders in their own right.
The CII will recognise Chartered titles from other awarding bodies as comparable to the CII’s individual Chartered Insurance Broker title providing:
– the title held is directly relevant to the individual’s principal area of work. For example the ICAEW Chartered Accountant title being held by the Finance Director or the CILA Chartered Loss Adjuster title being held by someone with primary responsibility for claims negotiation; and
– the awarding Chartered body concerned has a Code of Conduct (or Code of Ethics and Conduct) comparable to that of CII. A listing of the Chartered titles which the CII will automatically recognise as equivalent can be found here – other organisations will be considered on application; and
– at least one Executive Director/Partner must personally hold the CII Chartered Insurance Broker title.
- One of the firm’s Executive Directors or Partners (who, as an individual, holds the Chartered Insurance Broker title), must take on the role of Responsible Member. This person will have responsibility for submitting the firm’s application for acceptance and annual renewal.
- A minimum of 90% of customer-facing staff (for guidance on this requirement please refer to the application form and in particular point ‘2. Customer-Facing Staff’ within the ‘Terms and conditions relating to entry’ section) must be members of the CII.
These requirements were put in place to help ensure that standards of professionalism are present throughout the entire firm. Membership of the CII brings with it a requirement to adhere to its Code of Ethics and Conduct. Qualified members of the CII are also obliged to comply with continuing professional development requirements, which ensures their knowledge and skill-set remains up to date.
To apply firms need to complete the Application Form available to download here, or in the downloads section at the bottom of the page.
All requested information must be provided, including:
- copy of previous year’s final audited accounts
- listing of Executive Directors or Partners including an outline of their principal responsibilities and Chartered qualifications held
- listing of ‘customer-facing-staff’ and corresponding CII membership status
It is important to note that the Chartered title scheme is underpinned by disciplinary procedures to ensure that agreed standards are met. The CII has the right to withdraw Chartered status from any firm found to be in breach of its regulations.
Note: Terms and conditions relating to the Chartered Insurance Brokers title can be found on the Application Form.
The cost of becoming Chartered
The following fee structure has been devised to reflect the investment and commitment of applying firms, now or previously, in supporting staff through qualifications and in being members of the CII/Faculty of Broking.
| Number of staff employed |
Annual Fee |
| Up to 10 | £500 |
| 11 – 50 | £1,000 |
| 51 – 250 | £1,500 |
| 250+ | £2,000 |
Fees are payable annually, to be submitted together with the required annual returns. Forms will be automatically sent in advance of the anniversary date.
Renewal
The Responsible Member will be sent declaration forms requiring completion and return to the CII.
These will include:
- The make-up of the Executive Directorate/Partnership including Chartered titles held
- A listing of client-facing staff and confirmation as to their membership status
- Self-certification on behalf of all members confirming compliance with the Code of Ethics and Conduct and Continuing Professional Development requirements
- Copy of the previous year’s final audited accounts
FAQs
We have also produced a series of FAQs to address common issues relating to Corporate Chartered titles. Available here, these will be regularly updated in line with feedback received.
Communicating Chartered status
To support Chartered firms in communicating their newly acquired status the CII is developing a suite of communications. These can be used or adapted by firms to communicate to their stakeholders. The first of these can be found below, comprising communications to staff and to customers and an example press release. Further guidance will be added over the coming weeks and months, as appropriate.
Further information
To discuss the Chartered Insurance Brokers title please contact the CII at:
Customer Service
42-48 High Road
South Woodford
London E18 2JP
tel: +44 (0)20 8989 8464
fax: +44 (0)20 8530 3052
email: customer.serv@cii.co.uk
