CII The Journal - June/July 2024 by Redactive Media Group

TOGETHER WE STAND

Matthew Hill on how the CII will serve members, the profession and the public

C O NTENTS

5 Opinion Local institute past president Matthew Waters

6-13 News

UK and international news from the CII

25 Regulation

Regulatory updates from the UK

FEATURES

14-15 Interview

CEO Matthew Hill on the future plans of the CII

16-18 Flooding

The fallout of unprecedented ﬂoods in the UAE

19-21 Motor

Has the Consumer Duty had a positive impact for motor insurance customers?

22-24 Technology

Examining bias and hallucinations in artiﬁcial intelligence

26-27 Climatechange

Insurance initiatives helping to battle cocoa shortages

28-29 Membership

The CII pilots a new approach to awarding CII membership

30-31 Underwriting

A report from the CII New Gens on new ways to attract talent

34-35 Talent

How insurers can develop a youth-positive culture

42-43 Diversity

Enhancing inclusion via external and internal networks

44 Awards

Meet the 2024 winner of the Rutter Medal

45 History

Uncovering the story of women ﬁrst entering insurance

SECTOR SPECIAL

37 Broking Update from CII Broking Community chair Laura Hancock

38-39 Broking – Talent The beneﬁts of apprenticeships for insurance broking ﬁrms

40-41 Broking – BIBA Reﬂecting on the CII Broking Community BIBA fringe session

STUDY ROOM

32-33 Trust

Latest ﬁndings from the Public Trust Index survey

46-47 Learning

How to record and evidence your CPD in 2024

50 Q&A

The big 10 questions to test your knowledge

Fenchurch Street,

EC3M 3BY

Tel: (020) 8989 8464

(020) 8989 8464

The Journal is online at www.thejournal.cii.co.uk

The Journal is the oﬃcial magazine of the Chartered Insurance Institute (CII). Views expressed by contributors or advertisers are not necessarily those of the CII or the editorial team. The CII will accept no responsibility for any loss occasioned to any person acting or refraining from action as a result of the material included in this publication.

The

The Journal is online at www.thejournal.cii.co.uk The

Chief executive: Sian Fisher

CEO: Matthew Hill

EDITORIAL

Editor: Luke Holloway luke.holloway@cii.co.uk

Editor: Luke Holloway (020) 7417 4778 luke.holloway@cii.co.uk

Contributing editor: Liz Booth

DESIGN

Senior Designer: Will Williams Picture editor: Claire Echavarry

Senior Designer: Will Williams Picture editor: Claire Echavarry Cover Photography: Richard Gleed

Production: Jane Easterman

Printing: The Manson Group

Redactive Publishing Ltd., 9 Dallington Street, London EC1V 0LN

Recognising the rising stars of the insurance profession

The CII is seeking the best new talent in insurance to join its ﬂagship talent programme –The New Generation Group.

Forty promising professionals from claims, underwriting, broking and the London Market will work alongside other rising stars from the insurance profession, collaborate with key regulatory bodies, meet with members of parliament, learn how to handle the media and work together to improve the profession as a whole. Don’t miss the opportunity to be part of this great programme.

Closing date for applications:

To find out more, visit: www.

SUPPORTING WELLBEING

Member and past president of the Insurance Institute of Chelmsford and South Essex, Matthew Waters

, reﬂects on a session supporting mental health

The word ‘stress’ carries a complex and multifaceted meaning. In small, controlled doses, stress can be beneﬁcial. It can enhance productivity, spark creative thought and lead to signiﬁcant personal growth after overcoming challenges. However, a recent study by Mental Health UK reveals a troubling trend: nine out of 10 people have experienced “extreme stress” in the past year. This surge in stress levels has made it the leading cause of workplace absence, prompting the charity to warn that the UK is at risk of becoming a “burnout” nation.

In light of these findings, I was approached by the Gallagher Mental Health Awareness Team to collaborate on a session supporting this year’s Mental Health Awareness Week. Together, we organised a session at the Gallagher offices, delving into the definitions of stress, our innate resilience and the mental transition from feeling stressed to becoming resilient.

The panel for this session included Jamie DrummondSmith, non-executive director at Gallagher; Caroline Martin, leadership coach from Enabling Wings; and Zoe Patrick, resilience coach at Alchemy Academy; and Vivine Cameron, equality, diversity and inclusion manager of the CII.

The event attracted a diverse audience of senior and junior professionals including insurers, brokers, loss adjusters and service providers. Our discussions focused on understanding why some individuals thrive regardless of their circumstances, while others struggle regardless of circumstances.

We were also lucky to be joined by Chantal Burns, author of recently published book Bulletproof. Her insights into the nature of stress and resilience provided a valuable framework, with her work emphasising that resilience is not a ﬁxed trait but a dynamic quality that can be developed and strengthened in time.

The session was a prime example of how companies within the industry can work in

partnership with the CII to address critical issues. With Gallagher’s generous ﬁnancial support along with the time and personal experiences shared by the panel members, we were able to offer powerful and practical advice to a broad audience.

UNIQUE EXPERIENCE

A key takeaway from the session was the realisation that stress and resilience are deeply personal and unique experiences. Stress can manifest differently in each individual and, similarly, resilience can take various forms. What is crucial is the recognition that feelings of pressure are normal and part of the human experience. It is essential to understand where you are on your personal journey and to realise you are not alone in your struggles.

Historically, admitting to feeling stressed or seeking help was stigmatised, or perceived as a sign of weakness. However, societal attitudes are shifting and there is growing recognition that mental health is as important as physical health. I hope that through sessions like this, we can continue to break down these stigmas and encourage more open and supportive conversations about mental health.

The collaboration between Gallagher, Harrison Holgate and the CII, supported by a dedicated panel, demonstrates the importance of addressing mental health proactively. As we continue to navigate the challenges of modern life, it is vital to prioritise mental wellbeing, recognise the unique nature of stress and resilience, as well as support one another in our journey towards better mental health. ●

Matthew Waters is managing director of Harrison Holgate

As part of his presidential theme of ‘members’, CII president for 2024, Ian Callaghan, has opened this page up for members to discuss their experiences of being a CII member and showcase the excellent work done by members across the UK.

THE LATEST FROM OUR CII FOLLOWERS »

@BrokerDirectPlc

We are delighted to announce that our Corporate Chartered insurer status has successfully been renewed for another year by @CIIGroup #ChooseChartered

CII CELEBRATES OUTSTANDING VOLUNTEERS AT NETWORK CONFERENCE 2024

The CII hosted its annual Volunteer Awards as part of the Network Conference in June. The awards honour volunteers who have gone the extra mile within their CII local institute or Personal Finance Society (PFS) regional committee, at national level or within their own communities.

Local institutes and regional committees are invited to nominate individuals, who are then assessed by the CII’s Awards Panel.

@IFA_Dan

It was a real pleasure speaking at the @Profadviser conference about #cybercrime, how to protect your business and clients. In a few weeks I’ll be running a webinar on behalf of @CIIGroup Lis, so if you enjoyed it or missed it, keep watching for details

@Howden_UK

Our branch director, Jack Durrant, and commercial manager, Nikki Hookway, are at the Jubilee Awards. We proudly sponsor an award at this event, which provides an opportunity to showcase the very best achievements of students at the CII Manchester

This year’s winners included:

● Sally Blake FCII, Insurance Institute of London: Exceptional Service Award.

● Kimberley Hallam ACII, Insurance Institute of London: Distinguished Service Award.

● Lisa Winter Dip CII, Insurance Institute of Cardiff: Distinguished Service Award.

● Julie Calvert FPFS, Insurance Institute of Liverpool: Distinguished Service Award.

Each of the recipients was presented with their award by CII president

CII TEAMS UP WITH EDII TO ADDRESS INNOVATION CHALLENGE

The CII has partnered with specialist insurance innovation training provider EDII. The move is the ﬁrst by the Institute under plans to help members identify and access high-quality, non-technical education and development programmes that are directly aligned with the CII’s Professional Map, a competency framework detailing the knowledge and behaviours professionals need to succeed in their roles.

EDII’s Digital Minds programme is the ﬁrst programme of its kind to be aligned to the Professional Map following intensive

benchmarking and accreditation of its continuing professional development content, linking it directly to the map.

The partnership to promote EDII’s Digital Minds programme will help both individual CII members and companies embrace the curiosity, critical thinking, data appreciation and problem-solving skills that are needed to ensure the future success of the insurance and personal ﬁnance markets.

The Digital Minds programme consists of a series of segmented modules giving professionals future-focused innovation

Ian Callaghan, and chair of the CII Group Dr Helen Phillips. Callum Beaton FCII, chair of the Awards Panel, said: “Volunteers are at the heart of the CII’s local institute and PFS regional council oﬀering around the UK, all playing a part in promoting and developing, learning and growing the professionalism of the insurance and ﬁnancial services sectors. Our sector would be the poorer without the camaraderie and support of these volunteers in their communities.”

skills and tools to meet the needs of a changing industry. It is delivered through a combination of traditional learning, experiential modules, industry-expert insights and collaborative activities and projects, with delegates cultivating their own expansive innovation toolkit.

@QualityCareltd

We are delighted to welcome Ian Sadler to the team, a career insurance professional, specialising in the charities sector and Fellow of the CII

TALENT

@philter66

Great to be at the @Airmic 2024 conference at the @eicc with @CIIGroup - come and say hi #CII #Career #Community #Credibility #Insurance

@AltusCons

AI: The Future is Now. Read the article in the @CIIGroup Journal magazine, with comments from senior consultant & claims lead Patrick Hayward #InsuranceIndustry #ArtiﬁcialIntelligence

CII SEEKS FUTURE LEADERS FOR NEW GENERATION PROGRAMME

The CII is seeking rising stars to join its talent scheme, the New Generation Programme. The 2024/2025 class will be made up of 40 promising professionals from claims, underwriting, broking and the London market.

Each group will produce a project or initiative that could make a signiﬁcant diﬀerence to the insurance profession and present it to the CII board. This year’s programme will also include:

● An interactive session with key personnel from the Financial Conduct Authority.

● Talks from Members of Parliament and lobbying organisations in the insurance

sector, as well as a tour of the Houses of Parliament.

● Training on subjects such as leadership and handling the media.

Applicants are likely to hold a minimum qualiﬁcation of Dip CII level and ﬁve to 10 years’ experience within the general insurance profession. They must be CII members, working within insurance claims, broking, underwriting or the London market.

Applications from groups that are currently underrepresented in the profession are particularly encouraged,

TALENT

CII NEW GEN REPORT SAYS TIKTOK AND ESG KEY TO ATTRACTING TALENT

The CII New Generation Underwriting group 2022/2023 has published a report examining the insurance market’s ‘talent shortage crisis’. The report highlights barriers to entry as well elements of the industry that attracted respondents to the sector.

The group gathered data from four key stakeholder groups; individuals in their ﬁrst 12 months of employment in an underwriting role, individuals with at least ﬁve years of industry experience, emerging risk specialists and representatives from CII local institutes.

Social media, specifically TikTok, was identified as a key influence to join the industry for respondents in their first 12months of employment, who suggest a presence on social platforms to be a key factor in attracting Gen Z talent.

Respondents from the emerging risk specialist group suggest ‘being clear on our desire to protect against emerging risks, and our commitment to tackle areas such as climate change’ in the interest of appealing to potential new candidates.

The report also includes comments from one head of climate within the

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such as women, ethnic minorities, members of the LGBTQ+ community, and those identifying with both seen and unseen disabilities. The closing date for applications is Monday 19 August 2024.

→ More information and how to apply, visit: www.cii.co.uk/newgen

sector, who advised that Gen Z candidates are most eﬀectively engaged through real life interactions with ambassadors from insurance companies. They also suggest topics such as climate change and political risk, as key talking points when engaging with Gen Z candidates.

TWO NEW CII BOARD MEMBERS ANNOUNCED

The CII has announced the appointment of two new board members: Dr Desmond Bermingham, chair of the Education and Learning Committee and Jon Graham, chair of the Audit and Risk Committee.

The two new board members have been appointed for an initial three-year term, beginning in June 2024.

Dr Bermingham is also chair of the independent technical advisory panel for the Global Partnership for Education at the World Bank, and a non-executive director for Greenheart Action.

Graham trained as a Chartered accountant before moving into professional training where he specialised in audit and ﬁnancial reporting. He held several leadership roles in training businesses including a successful management buyout before being appointed as managing director of the Chartered Institute of Public Finance and Accountancy.

Dr Helen Phillips, CII group chair, said: “The CII Group Board warmly welcomes Desmond and Jon, who each bring a wealth of knowledge and experience to their respective positions. We look forward to working alongside them both, as we continue in our pursuit of building public trust in the insurance and ﬁnancial planning professions.”

CHARTERED INSURANCE INSTITUTE

HIS MAJESTY KING CHARLES III ANNOUNCED AS PATRON OF THE CII

It is with great honour that we announce His Majesty King Charles III as our new patron.

The CII is deeply proud of our longstanding Royal association, which began with King George V granting our ﬁrst Royal Charter in 1912. His Majesty succeeds Her Late Majesty Queen Elizabeth II as our patron, who granted us a new charter in 1987.

The CII would like to thank His Majesty for continuing to support and recognise the work of the CII across the insurance, ﬁnancial planning and mortgage advice professions. We are looking forward to the opportunities it presents to extend the beneﬁt we can bring to individuals and societies around the world, consistent with our Royal Charter.

EVENTS

CII TEAM UP AT MENTAL HEALTH AWARENESS WEEK EVENT

The CII partnered with Harrison Holgate and Gallagher in May to host a special event during Mental Health Awareness Week: ‘Knowing Yourself: A guide to finding your innate resilience’.

The event brought together insurance business leaders to discuss how mental resilience can support success and unlock individual’s ability to thrive in any circumstance.

The expert panel included Jamie Drummond-Smith of Gallagher, Vivine Cameron, equality, diversity and inclusion manager of the CII, Zoe Patrick of the Alchemy Academy and Caroline Martin from Enabling Wings, who shared insights and experiences to highlight factors that contribute to an individual’s ability to thrive even in challenging situations.

Discussions were led by Matthew Waters, past president of the Insurance Institute of Chelmsford and South Essex, who provided further insights and approaches to resilience.

Read the article about how events like these are being led by CII members on page 5 of The Journal

Dr Desmond BerminghamJon Graham

PODCASTS

NEW SEASON OF THE JOURNAL PODCAST LAUNCHED

‘The Journal Podcast’ has launched a brand-new season available now for free now across The Journal website along with SoundCloud, Stitcher Radio or Apple.

The podcast invites industry experts to discuss an array of themes from across the insurance profession, as well as give CII members and the wider sector an insight into the work of the professional body.

Episode one of the latest season features recently appointed CII CEO, Matthew Hall in conversation with editor of The Journal, Luke Holloway, sharing his ﬁrst impressions of the insurance sector and plans for the future of the Institute.

→ To listen to the latest season and access a complete library of previous episodes, visit: www.thejournal.cii.co.uk/podcasts

Read the interview with Matthew Hill on page 14 of The Journal

TALENT

CII ASPIRE APPRENTICE WINS AWARD

The Tomorrow’s Talent award at this year’s Apprenticeship Awards Cymru, in Wales, has been won by Heledd Roberts, who began her apprenticeship through the CII’s Aspire Apprenticeship scheme.

Roberts, 24, from Carmarthen, has worked for agricultural specialist insurance broker, FUW Insurance Services, for three years. She is currently based at the Ruthin oﬃce in North Wales and is completing the apprenticeship scheme through the CII provider for Aspire Apprenticeships in Wales, ALS.

Reacting to her award, Roberts said: “I am completely shocked and thankful for this award which is validation for all the late nights and weekends that I have put into the higher apprenticeship, which I am now close to completing.

“It has deﬁnitely been worth all the work because I have received amazing support and an apprenticeship can take you so much further in your career.”

The Apprenticeship Awards Cymru are organised by the Welsh Government and supported by the National Training Federation for Wales.

WE WORK FOR YOU

As I took to the stage at my first Network Conference in June, I reflected on the warmth and generosity of the welcome I have received since taking post. It is evident to me, even after only a short period with the CII, that our members and volunteers share a passion and commitment for their professions that is truly inspiring.

In many ways, I should not have been surprised by how energised we all felt after two days of conversation. Our collective mission, as set out by our Royal Charter, benefits communities and societies in the UK and around the world –I can’t think of anything simpler, clearer or more motivating. Providing people with trust and confidence that things will be put right in the most challenging of situations is not easy. We collectively benefit enormously from the products and services provided by the firms and professionals in our sectors, but how they are delivered is equally important. The more you trust a profession, the more you are likely to engage with them. Passion and commitment can be just words, but I came away from this year’s event with not the merest hint of doubt that they are truly believed.

My colleagues and I know that our volunteers are the torchbearers for the pride and excitement that we feel as an organisation. We share careers that create a feeling of meaning and reward, and it strikes me that it’s a depth of feeling that stands apart from many other professions. We need to mobilise those feelings, that excitement and pride, and use them to further benefit society. In part we are doing that by reinvigorating the leadership of the CII. In recent weeks, we have created a new executive team structure and we will be recruiting additional talent in the coming months.

While structures are important, focusing on the right activities is essential. My colleagues and I were immensely grateful to the 120 or so volunteers who gave us the time out of their busy lives to share their thoughts and engage with us. I am equally keen to hear about the issues that are at the top of your minds. We can only really achieve our mission by working broadly and collaboratively, so, please do reach out if you think there are things we can do to help you achieve your ambition. As I said at the conference, we are here to work for you.

MATTHEW HILL, CEO

CII AMBASSADOR VISITS HONG KONG OFFICE

CII Hong Kong (CIIHK) had the pleasure and honour to have our CII goodwill ambassador, Gigi Chen from Lloyd’s of Shanghai, visiting the CIIHK office before its relocation.

The day was an opportunity for the CII team to welcome Chen and extend their gratitude for the outstanding and valuable contribution she has made to the organisation during her role as goodwill ambassador.

CII HOSTS CONFERENCE ON ‘DIGITAL INSURANCE AS SOLUTIONS’

The CII co-hosted the ’Digital Insurance as Solutions for Emerging Insurance Challenges’ conference at Shanghai Lin-gang Special Area, alongside Dishui Lake and Lin-gang Special Area International Education.

Distinguished keynote speaker Russell Higginbotham, CII immediate past president and CEO of Swiss Re, shared invaluable insights and thoughtprovoking perspectives on delivering resilience through digital technologies.

A panel of experts also shared their experiences and insights on relevant topics, identifying the critical successful factors of digital insurance and promoting customer satisfaction through digitalised insurance solutions.

HONG KONG

CHINA

CII goodwill ambassador Gigi Chen (middle) visits the CII Hong Kong oﬃces

MIDDLE EAST OFFICE APPOINTS GOODWILL AMBASSADOR

The CII Middle East office has appointed Gamal Sakr as the CII’s Goodwill Ambassador in Egypt. Sakr is regional director for Cairo-based North East African Reinsurance Corporation and has had a 32-year career in insurance across underwriting, claims and reinsurance. His voluntary position as a CII Goodwill Ambassador will see him assisting the CII’s Middle East international team in promoting CII qualifications and professional standards to build public trust in the region’s insurance sector.

Gaenor Jones, CII regional director of the Middle East, commented: “Gamal is exemplary of a professional whose highly successful career has accelerated due to the continuing professional development that he has undertaken. We believe he will represent the CII and all that the Institute stands for very well in Egypt.”

CII PARTNERSHIP WITH EIF PROVIDES TRAINING TO EMIRATI STUDENTS

The CII’s relationship with the Emirates Institute of Finance (EIF) continues to flourish with a new cohort of Emirati students working towards attaining the CII’s claims or underwriting study units as part of their upskilling through the education and training specialist.

The CII has a long-standing partnership with the EIF to assist with the United Arab Emirates’ (UAE) Emiratisation programme by providing internationally recognised CII qualifications to insurance and personal finance professionals.

The Emirates Institute for Banking and Financial Studies has operated for more than 38 years in the UAE, offering specialised education and training to individuals looking to develop personal and professional skills for embarking on a career in the banking and financial sectors and is widely regarded as a leader in Emiratisation.

Gaenor Jones, CII regional director of the Middle East, commented: “We are very pleased to be working in tandem with the EIF to enable the indigenous population of the UAE to secure career advancement and long-term opportunities in the sector through the provision of the CII’s internationally recognised qualifications.”

NEW INTERNATIONAL PARTNER FIRMS

The CII continues to encourage regional corporate organisations in the Middle East to become International Professional Partner Firms. The latest companies to commit to the initiative are Arma and City Marine. They join prominent organisations Lockton, Braxtone, Chedid Re, Fidelity and Gargash, all of whom have been officially accredited by the CII for supporting their employees with CII training and qualifications.

MIDDLE EAST

9 JULY

WHAT ARE INSURERS DOING ABOUT THE CLIMATE CRISIS?

→ 12.30pm – 1.30pm Insurance Institute of Bedford and Milton Keynes www.cii.co.uk/bedford

10 JULY

VULNERABLE CUSTOMERS

→ 12pm – 1pm Insurance Institute of Bristol www.cii.co.uk/bristol

11 JULY

THE BEGINNINGS OF FIRE INSURANCE

→ 10am – 11am Insurance Institute of Plymouth & Cornwall www.cii.co.uk/ plymouth-cornwall

KENT CONFERENCE TALKS GLOBAL CHANGE

The CII Kent Regional Conference returned for its 11th year in April, focusing on the theme ‘Navigating rapid, transformative global change’.

Taking place in Maidstone, conference

NORTHERN IRELAND

host Ray Johnson led by outlining the challenges and opportunities presented by transformative global change, while reaﬃrmed those individuals or companies that take on sustainability, resilience and inclusiveness through the whole chain will be the long-term winners.

An overview of some of the key issues were covered by Graeme Trudgill, CEO of BIBA, Nicholas Hartley of AXA and Jill Hambley of ICS, following which delegates

MENTAL HEALTH AND WELLBEING IN FOCUS

The Insurance Institute of Northern Ireland (IINI) recently hosted a dedicated mental health and wellbeing event for its members. This builds on the incredible success of a similar event last year focused on men’s and women’s health.

The event was focused on mental health awareness and wellbeing with sessions from subject matter experts on topics ranging from the importance of good gut health, diet and exercise to mental health toolkits to help recognise and cope with stress, anxiety and depression, as well as suicide awareness and prevention. There was also support and information on hand for members from a range of local charities on the day.

Fiona Coulter, IINI president 2023-2024, commented: “Our theme for this year was to reconnect, re-engage and revitalise. The past few years have undoubtedly tested our resilience but has also reminded us of the important part our local insurance community plays in safeguarding individuals, families and businesses during times

of uncertainty.

were able to interact with speakers during an engaging Q&A session (pictured).

Other speakers included Damian Collins OBE MP, who spoke next about cyber risk and artificial intelligence; Paul Redington of Zurich talked about the need to develop wildfire maps for the UK and greater regulation for solar panel fitters to help reduce fires; Marsh actuaries Holly Webb and Jake Iverson who discussed the benefits of greater involvement from actuaries on boards of insurance firms; and Mark Lumsdon-Taylor of MHA presenting a fascinating overview of environmental, social and governance risk from both a national and international perspective.

The event concluded with an inspiring talk by former athlete and Olympic medallist Roger Black.

In our journey to reconnect, re-engage and revitalise, we felt it was so important for us to prioritise the health and wellbeing of our members and so we were delighted to be able to organise this dedicated mental health and wellbeing event.”

As well as supporting local members and shining a light on these important topics, the IINI was delighted to make donations to a number of the charities in attendance, including this year’s chosen charities Lighthouse (www.lighthousecharity.com) and K9 Search and Rescue NI (www.k9searchandrescueni.org).

KENT

INSURANCE PROFESSIONALS UNITE AT NATURE SUMMIT

A wild island on the west coast of Scotland, Eilean Shona, recently played host to the Insurance Institute of London’s (IIL) 2024

Nature Summit – a landmark annual event that brings together emerging leaders from the insurance profession to explore the intersection of climate, nature and business using real world examples and stimulating discussions.

Held in May, the four-day event was attended by a select group of underwriters, brokers and sustainability managers, with local innovators and

wildlife experts to add local perspectives and expertise.

The summit involved deep dives into emerging topics related to climate and nature, with discussions on biodiversity net gain led by Will Butler of Marsh, nature as a resilience measure led by Nathalie Thong of AXA XL, and workshops from scientists, local land estate owners and businesses.

Participants kayaked with local wildlife experts to see biodiversity ﬁrst-hand;

LEEDS SUMMER BBQ IS A HIT

Fun, food and fundraising was the focus as the Insurance Institute of Leeds hosted its summer barbecue networking event in June.

More than 70 members and guests attended the event at the city’s iconic Lamb & Flag pub, as the Institute continues to drive its objective of bringing members of the local insurance and ﬁnancial services community together.

The informal approach encouraged a great turnout, giving guests the chance to catch up with fellow insurance professionals and meet their local insurance institute council.

→ For more information on the Insurance Institute of Leeds, visit: www.cii.co.uk/leeds LEEDS

BIRMINGHAM

Institute president Emma Vernon (pictured) gave a short presentation to explain the work undertaken and support provided by the Insurance Institute of Leeds and how it beneﬁts members locally, before encouraging new members to take the opportunity to consider getting involved.

The event also raised £350 for the Leeds South & East Foodbank.

headed out with local sea kelp farmers to understand ﬁsh shelters and kelp lines used as natural fertilizers in agriculture; and hiked with ecologists to learn about sustainable land management practices.

→ For information on the next Nature Summit, email: iil.london@cii.co.uk

BII ANNOUNCES SUMMER NETWORKING EVENT

With its 2025 annual dinner already sold out, Birmingham Insurance Institute has responded to members and guests’ requests for further networking events by announcing a summer networking barbecue.

Taking place on Wednesday 25 September, the event will be held at the iconic Library of Birmingham and is an opportunity to bring together members and guests from both the insurance and ﬁnancial services communities.

The Institute has secured the venue’s Library Terrace which gives guests spectacular views over the centre of Birmingham and, with numbers limited to 200, the Institute is recommending guests reserve their place at their earliest convenience.

The event will raise funds for the president’s charity One By One (www.onebyone.org).

→ For more information and details on how to book your place, visit: www.cii.co.uk/birmingham

PRECIOUS CARGO

Matthew Hill speaks to Luke Holloway about his role as CII chief executive and his ambition for the future of the Institute

Matthew Hill became chief executive of the CII Group in April this year and was immediately struck by the passion and commitment of the Institute’s members as well as the high regard in which the organisation is held by those across the insurance and ﬁnancial planning professions.

“As a Chartered institute, the people we should be thinking about ﬁrst and foremost are our members and the public,” Hill tells us. “We are asked by our Royal Charter to build public trust in the insurance and personal ﬁnance professions and there are lots of valuable ways we can do that.

“I see the mission of the CII as being about building communities of professionals through education, training and other matters in which the public can place its trust. To my mind, that is the most exciting thing about the CII and everything it stands for.”

The CII’s Royal Charter is an accolade Hill places great importance on. “We are a Chartered body and there aren’t that many of them,” he says. “We have had that Charter for 120 years. It gives us a mandate and a mission, it sets us apart, it makes us distinctive and it makes us

special. Through all of those things, it is recognition that the professions that we serve have all of those characteristics of distinctiveness and value in society.

“Every colleague at the CII, and indeed every member, ought to be able to look at that Royal Charter with a degree of pride and excitement, to derive motivation from it.

“I describe the CII as precious cargo and we need to do it full justice by delivering to the fullest extent the ambition that is set out in our Charter,” he says.

ON COURSE

Hill takes up the mantle with the CII Group currently one year into its ﬁve-year strategy. “In my view, the current CII ﬁve-year strategic plan is

THERE IS A WHOLE RANGE OF THINGS THAT I SEE AS BEING THE SOURCE OF ENORMOUS GROWTH FOR THE CII IN TERMS OF ITS INFLUENCE, CREDIBILITY AND THE WAY IT POSITIONS ITSELF

really strong,” he says. “It is very clear and it is full of ambition.

“It is a really good translation of the Charter into a strategic plan. I see no reason to change that plan, but I do see lots of opportunity for the Institute to get better at turning that ambition into meaningful programmes of activity,” says Hill.

That is activity that will beneﬁt members across the UK and internationally, including those who are part of the 54 local institutes and 26 regional committees of the Personal Finance Society (PFS).

“We are immensely privileged to have such commitment and passion on the ground in the CII local institutes and PFS regional committees. We need to make sure that we are mobilising as effectively as possible that passion and commitment. I am very taken by the notion that membership of the CII should be about belonging to a professional community and building a sense of value in that community, value that is added to society,” Hill says.

“First and foremost, I’ll be looking for ways to underpin, support and develop a membership that is a real force for good both in communities and nationally.”

An area that Hill would like the CII to have increasing inﬂuence is in the regulatory space. “Given the expertise and passion that we have in and around the CII, I see us as being very well placed to be an effective and reasonable translator between the regulator and the profession,” he says.

“The organisations which secure the greatest benefits for their members are the ones who can see the regulator’s point of view, accept that they may have a point on things like transparency, fairness or the benefit for the consumer and then help to fill the gap between the regulator’s desired outcomes and the ability of an industry to translate that desire into sensible business implementation that minimises cost and maximises benefit. I’d very much like the CII to fill that role.” says Hill.

BRIGHT FUTURE

Hill is focused on bringing stability to the organisation as a whole and wants members to be conﬁdent that their professional body has their best interests at heart.

“What I want to do is really reinvigorate the sense of public purpose and public value that the Institute has and try to capture that sense of pride of being part of the Institute.

“The organisation has had quite a lot of turnover at senior leadership levels in recent times, so bringing stability and longevity to the leadership of the organisation is really important for everybody.”

After only a few months, Hill already holds a huge amount of optimism for the future of the CII. “I hope we can become the go-to voice for regulators, policymakers and government on insurance and ﬁnancial planning. I hope that we are going to lead the debates on matters that impact the sector – artiﬁcial intelligence; climate change; environmental, social and governance; equality, diversity and inclusion –I’d like the CII to be a leading, if not the leading voice in those debates.

“I would like us to be much more ﬂexible and agile in the range of support we can provide in terms of education and training for the professions. There is a whole range of things that I see as being the source of enormous growth for the CII in terms of its inﬂuence, credibility and the way it positions itself and I feel very lucky to have joined the CII at this particular point in its history.” ●

Luke Holloway is editor of The Journal

UAE UNDERWATER

Liz Booth reports on unprecedented recent ﬂoods in the UAE and

Earlier this year, the United Arab Emirates (UAE) and Dubai in particular were hit by sudden and ferocious ﬂooding.

The event was so shocking that there was talk that ‘cloud seeding’ caused the event and it had simply had some unintended consequences. Although that idea was quickly rejected by scientists, the country and the city was left reeling and fearing that climate change could bring more of the same.

“The duration of the recent ﬂoods was unprecedented,” says Gaenor Jones, CII regional director of the Middle East. “In the UAE, a record 254 millimetres (10 inches) of rainfall was recorded in Al Ain, a city bordering Oman. It was the largest ever in a 24-hour period since records started in 1949 and vastly exceeded the average UAE April rainfall of just 16 millimetres.

“The damaging impact on buildings and vehicles was immense. More than seven weeks later, people are still without homes and cars as their insurance companies struggle to deal with the vast amount of claims ﬁled.”

the impact on those with and without insurance cover

As the UAE is a desert country, the infrastructure drainage system has not been designed to accommodate large amounts of ﬂood water.

Jones explains: “The arid ground is very solid, so it is unable to absorb water quickly, which creates very large masses of water on busy arterial roads and in residential and commercial areas.

“In addition, buildings here, including public spaces, houses and offices, are not constructed with any robust forms of water proofing, guttering or drainage. Combine this with flimsy infrastructure drainage systems and the collective impact of heavy rains has been very destructive.”

INSURANCE MARKET RESPONSE

It says the insurance industry can manage the insured losses, given their distribution among numerous insurers, the prevalence of third-party insurance for damaged cars and the

In the immediate aftermath of the storm, it was reported that as few as 15% of UAE residents had home insurance. But despite that low number of insured, there were also immediate concerns about the ability of the local market to cope.

According to analysts at S&P Global Ratings, “claims relating to motor and property damage will make up the majority of losses for local insurers”.

likelihood of reinsurance policies absorbing accumulated claims.

Although Dubai’s infrastructure, including the airport, public rail network and large shopping malls, suffered signiﬁcant damage, S&P expects minimal impact on local insurers as such risks are usually ceded to reinsurers.

However, S&P says: “Although most insurers we rate in the UAE have robust capital and liquidity buffers, the solvency of about 20% of the listed insurers is only slightly higher, or even lower, than the required regulatory minimum.

“As a result, we anticipate that the capital and liquidity buffers of some insurers with weak capital positions could become strained, potentially leading to some delays in claim payments. In our view, this could be the case in particular for thinly capitalised insurers that retain a large portion of motor and other risks and those that do not have adequate reinsurance cover in place,” the analysts conclude.

Jones agrees it was a real shock to the local market. “It was totally devastating,” she says. “The authorities had warned the population of the incoming inclement weather days before, but no-one could have prepared for such a massive and enduring rainfall that would wreak havoc on this scale.

“Still, after several weeks, there are individuals and businesses who have not been able to ﬁle claims and, where they have, they are still awaiting a response. Many claimants have had their claims rejected because their policies did not include storm damage, while many vehicle owners who were covered had not read the small print, which stipulated that a vehicle could not be driven or moved in water or their claim would be null and void.

“Survey ﬁndings by local company Souqalmal.com recently revealed that only a quarter of respondents answered ‘yes’ when asked if they knew whether their motor insurance included ﬂood damage.”

Jones also stressed that the storm has demonstrated the crucial importance for consumers of taking sound advice from internationally qualiﬁed advisers before signing any policy agreement.

In terms of the reaction from insurers and how they have been supporting customers, she says:

“Insurance companies have been deluged by vast numbers of claims, with several having to recruit and mobilise claims handlers and loss adjusters from other countries to meet the huge demand. The sheer number of motor insurance claims being made at one time means that in many cases insurance companies are unable to supply loss adjusters, so they are simply assuming that vehicles which could potentially be salvaged and repaired are written off.

“The cost of employing extra manpower, coupled with the inability to inspect vehicle damage to provide proportionate reimbursements, along with the huge scale of property damage claims, is combining to make this a very costly period.”

CLIMATE CHANGE FACTORS

And the concern is that it could be a sign of things to come.

JBA Risk Management says the storm was the heaviest rainfall in the country for 75 years and points to meteorologists who attributed the exceptional rainfall to a low-pressure weather system, signiﬁcantly ampliﬁed by climate change factors. 5

Using its data, JBA Risk Management claims that the observed daily rainfall of 168mm at the beach resort area of Jumeirah in Dubai on 16 April suggests a 125-year rainfall event impacted the city. In the east of the UAE in Kalba, 240mm of rainfall (NCM, 2024) suggests a 365-year event in this area. It concludes: “Extreme rainfall events in the Arabian peninsula are becoming more signiﬁcant and common due to climate change, potentially happening more often than the historical data suggests. As the climate continues to change, the region may need to prepare for more such events, which were once considered extremely unlikely.”

Jones agrees: “Yes, it is indeed, with many weather experts and meteorologists stating that the recent ﬂoods were down to climate change as opposed to cloud seeding, which has become a regular occurrence in the region in the past few years.”

As a result, she believes: “There need to be changes to the country’s infrastructure, with more robust drainage and water run-off systems incorporated. Buildings will also need to be constructed in a manner that accommodates heavy rains and wind. Such improvements will take time, however, and we may experience a repeat of the storms before they come into effect.”

There is a silver lining, however, with Jones saying: “On a positive note, consumers are better educated in the wake of the disaster about the importance of checking their insurance policies carefully so that they know what they are covered for in the event of bad weather and, importantly, they understand how the claims process works.

“Here, it is quite customary for a bank to provide an insurance policy as part of the criteria for securing a mortgage on a home. Sometimes, the lender is not even aware of who the third-party insurance ﬁrm is and they may not even receive a policy schedule. There clearly need to be changes to this process, which leaves the consumer in a very vulnerable position and undermines the insurance sector.”

She concludes: “I anticipate that more people will now seek out professional advisers when choosing and buying a home or motor insurance policy. We are constantly communicating the merits of using professionals who hold CII-accredited qualiﬁcations, which highlight not only their technical abilities and product knowledge, but their soft skills also, an important consideration when a consumer is making a claim in traumatic and challenging circumstances.” ●

Liz Booth is contributing editor of The Journal

Gaenor Jones appearing on the Dubai Eye Business Breakfast show discussing the importance of consumers choosing a qualiﬁed insurance adviser

MOTOR TROUBLE

Liz Booth reports on a swathe of issues currently affecting the motor insurance market and asks: has the Consumer Duty had a positive impact?

Motor insurance customers in the UK have had an increasing number of reasons to feel aggrieved in the past year. Premium prices have soared, with recent data from Quotezone revealing that both younger and older drivers have faced huge hikes. The study uncovered a 77% rise year-on-year in the cost of cover for new drivers and that the average price of car insurance quoted to over-65s has increased by 43% in the past year. 5

On top of this, there are reports of rising numbers of uninsured drivers on UK roads and, it appears, a concerning increase in complaints regarding diﬃculties or delays when making a claim.

The new Consumer Duty is designed to make customers feel happier that they are being treated fairly, being charged appropriately and having claims settled in a fair manner.

However, a year on from the new rules, it seems they have yet to make an impact in the motor arena.

Insurance DataLab reported in May that grievances towards motor insurers reached a new peak in the last 12 months, with complaints about the sector rising by almost a ﬁfth (18.2%) in the last year.

The ﬁrm analysed ﬁgures from the UK’s Financial Conduct Authority (FCA), which showed that customers in the UK made more than 280,000

complaints about motor insurance from the second half of 2023 onwards, up from less than 240,000 during the same period in 2022.

These ﬁgures also show that more than 2.5 million complaints have been logged against products in the sector, making motor insurance the most complained-about business line

18.2%

increase in complaints from motor insurance customers in the past 12 months

Source: Insurance DataLab

in the UK general insurance market. In response, insurers have paid out nearly £580m in compensation to address these motor insurance complaints.

RISING COMPLAINTS

Between 1 July and 31 December 2023, the Financial Ombudsman Service (FOS) received a total of 95,349 complaints in all classes of ﬁnancial business between 1 July and 31 December 2023, compared to 79,921 complaints in the same period in 2022.

During that six months in the second half of 2023, a total of 22,845 complaints received were about motor insurance.

The Ombudsman says: “We saw an increase in general insurance cases – with car or motorcycle insurance complaints rising the sharpest. This is partly due to continued delays in ﬁrms being able to put things right when a claim is made, as well as an insurer’s

valuation of a vehicle.”

That issue with valuations can prove contentious, as the FCA is well aware. In a recent review, it found evidence that suggests some ﬁrms are offering their customers less than their written-off or stolen vehicle is worth and, in some cases, are only increasing that offer when a customer complains.

This comes despite the FCA’s previous warnings that insurers must not undervalue cars or other insured items when settling claims. The regulator is engaging with the ﬁrms included in its review to ensure they make improvements to address the FCA’s ﬁndings.

“Having your vehicle written off or stolen can be intensely stressful and we expect ﬁrms to offer the right support to help their customers,” says Sheldon Mills, executive director, consumers and competition at the FCA. “We expect all motor insurers to take note of our ﬁndings and we are engaging directly with those that have issues that need to be addressed.”

GOOD OUTCOMES

Insurers must handle claims promptly and fairly under FCA rules. Following the introduction of the Consumer Duty in July 2023, ﬁrms are also required to ensure consumers are at the heart of their business and must act to deliver good outcomes for them.

Insurers would argue that they are working hard to redress the balance and ensure their customers are being looked after. Aviva, for example, says: “Providing good customer outcomes has always been a focus for Aviva and our UK general insurance business was well prepared ahead of the Consumer Duty, particularly since we had already been through General Insurance Pricing Practices and other regulation.

“By aligning to the Consumer Duty, we have strengthened our processes and reviewed a broad number of things, including pricing, products, customer support and customer

communication. We regularly test and review our customer communications and journeys to ensure they are easy for customers to understand. It is vital they are clear, fair and not misleading.”

It adds: “As the regulation evolves, we will continue to review our processes and work with the regulator.”

Referring speciﬁcally to the FCA’s review, Aviva says: “We fully cooperated with the FCA’s review and welcome the guidance it has provided to the industry. We strive to treat customers fairly and we are conﬁdent that our approach is in line with this guidance. Any offer made to an Aviva customer is representative of the fair market value.”

Dr Matthew Connell, director of policy and public affairs at the CII, adds: “Valuing items accurately is

always diﬃcult – we have dozens of reality TV programmes dedicated to nothing but this subject.

“However, it is essential that insurers can prove they have processes that are designed to deliver the right answer for the customer and not simply put out an ‘opening bid’ for future negotiation. Insurers have more information and experience than customers in this area and that means they have professional responsibilities.”

He concludes: “While there is no correct way to ﬁnd the exact value of a written-off or stolen car, the FCA has said there are already examples of good practice in the market. If we can build on these, we can make a signiﬁcant stride towards building trust with the public.” ●

Liz Booth is contributing editor of The Journal

CAR FINANCE ALSO CREATING ISSUES

The FOS has reported that it currently has about 20,000 open complaints related to car finance commission and, in January 2024, published its first, representative, final decisions fully addressing the arguments it has received across a range of motor finance complaints.

It says: “Our role is to ensure that everyone with a valid complaint gets fair compensation. And – no matter what the outcome of a complaint – we want to provide clear, reasoned answers at the earliest opportunity.

“This is so that customers can better understand their position, while ﬁnancial ﬁrms can apply the learnings to their handling of similar complaints.”

Judicial review and other court proceedings

The Ombudsman goes on to explain: “In March, three court cases relating to car ﬁnance commission were granted permission to go to the Court of Appeal. The Court of Appeal hearing has not yet taken place. The Court of Appeal’s decision is expected to consider how the law relating to secret and half-disclosed commission might apply to motor ﬁnance commission payments.

In addition, it said: “In April, Clydesdale Financial Services Limited – trading as Barclays Partner Finance – started judicial review proceedings in relation to one of our decisions. The judicial review hearings have not yet taken place.

“We recognise that both the judicial review and the Court of Appeal’s decisions could have an impact on our approach to complaints that include similar issues.”

What does this mean for complaints?

The Ombudsman continues: “In January, the FCA announced a review of the historical use of motor finance discretionary commission arrangements. As part of this, the FCA paused the requirement for firms to issue final responses in some discretionary commission arrangement cases. The FCA has committed to provide further information about next steps by 24 September 2024.

“At this point, we do not know when we can expect the decisions from the courts. That means we are unlikely to be able to issue ﬁnal decisions on aﬀected cases for some time.”

WHEN AI MAKES MISTAKES… DON’T PANIC!

In the latest in our series on the use of AI in insurance, Dr Artur Niemczewski and Chris Shadforth examine the issue of bias and so-called hallucinations

When FBI special agent Dana Scully turned to her fictional colleague Fox Mulder back in the early 1990s to proclaim “the truth is out there”, she was quick to follow up by saying: “But so are lies.” In many ways, the blurring of fact and fiction in The X-Files television series reflects what we are seeing with artificial intelligence (AI) today.

The previous article in this series talked about the importance of the “human in the loop” (available at www. thejournal.cii.co.uk). So, if you find yourself as that responsible human, how do you know when

AI is telling the truth or making it up – or what we might charitably call, making mistakes? Because all AI is programmed by humans, we don’t have to scratch too deeply beneath the programming surface to isolate its potential frailties, because of course we share them. The two main examples are bias and hallucinations.

BIAS – WHY MIGHT AI MISS THE TARGET?

Bias is a systematic skew of answers in one direction. If we were shooting a fairground riﬂe, it would be equivalent to us consistently missing the tin cans by ﬁve inches in one direction. In contrast, hallucinations are more like spraying shots across the vendor’s colourful stall, by varying amounts in multiple directions.

In engineering terms, “a consistent, known error is not an error” – it can be detected and corrected. If we spot it before our fairground fun ends, we might drop our aim a little and still win the cuddly toy by knocking the cans down. It’s the same with AI. If we can spot it, we can correct it –though the time and cost of adjusting our sights could be signiﬁcant. For example, we could adjust the algorithm, perhaps by changing the loss function. Or we could input a new training dataset. Or we could ‘improve’ the human curators – the ones supervising the training. In many ways, we get out what we put in.

Take politics, for example. The US and the UK are both holding general elections this year. The populations of two of the most powerful countries on the planet are likely looking to imbue themselves with information about their potential candidates. It would be rather unfortunate then if the source of (some of) that information turned out to be politically biased. In 2023, researchers from Norwich Business School, University of East Anglia, analysed ChatGPT and their answers

POLITICAL BIAS OF CHATGPT – US

were not comforting. They found that ChatGPT was heavily biased towards the Democratic Party in the US and the Labour Party in the UK. Whether you agree or disagree with the political views encoded into ChatGPT, it shouldn’t have any! Its job is to give neutral answers.

So, how can you – as a responsible human – avoid bias in the models you might use in your work? A simple,

four-point plan would be:

1. Speak to your foundation model provider.

2. Check the provenance of the training dataset, especially in insurance underwriting.

3. Provide clear instructions to the curators.

4. Test and test again. Use question sets where you know what answers to expect. 5

POLITICAL BIAS OF CHATGPT –UK

Source: Motoki, F., Pinho Neto, V. & Rodrigues, V. More human than human: measuring ChatGPT political bias. Public Choice 198, 3–23 (2024).

WHAT HALLUCINATIONS?

In contrast, random, unexpected errors are much more diﬃcult to address. When generative AI chooses to provide us with images of nonwhite Founding Fathers or female Popes, as was the case with Gemini Images by Google, there’s rather more head-scratching. Similar errors are prevalent in textual responses, yet we are less likely to be certain of their occurrence because – let’s face it – most will be harder to spot than incorrect pictures. In these cases, we’re looking for non-existent facts or untruths (lies).

The potential for error in pursuit of potential efficiency gains from AI was thrown into sharp relief last year when a US lawyer was forced to explain to a judge how he’d come to submit a legal brief filled with fake judicial opinions and legal citations. It turned out they were all generated by ChatGPT. When challenged, Steven Schwartz said he “did not understand it was not a search engine”. It was a professionally embarrassing and financially costly mistake for Schwartz. Alongside fining him $5,000 (£3,935), the judge stressed that lawyer ethics rules impose a “gatekeeping role” to ensure the accuracy of their filings. The same must be true of the insurance profession; we must follow ethical guidelines whatever tools we are using.

If we know generative AI is susceptible to hallucinations, can they too be ﬁxed? In short, no. Generative AI is a rather more digestible way of saying “stochastic calculator”. Unlike Mulder and Scully, AI doesn’t seek out the truth from lies, it’s designed to deliver the most probable answer – aka, the bestsounding one. In this sense, every generative AI model, which relies on the “transformer” math (what the T stands for in GPT), hallucinates to some extent. This is why those companies that are deploying these technologies are quick to provide a health warning with every use. Do read the small print.

If we cannot rely on the answers, why bother? Well, some systems are better than others. A company called Vectara has developed a way to track hallucinations using tightly controlled prompts and publishes a running leaderboard. Some performances are deeply concerning, with a hallucination rate in excess of 20%. Others, such as GPT 4 Turbo, return low, singleﬁgure percentages. Is that good? Perhaps a better way of putting it is that it is not as bad as it has been, but it’s far from perfect. It’s analogous to saying 3% of a doctor’s patients died because they were treated with an ‘invented’ medicine. In our profession, it could equate to telling 3% of our clients they were not actually insured. That doesn’t sound good. So, how can we reduce the prevalence of hallucinations? Here’s another simple fourpoint list:

1. Reduce the randomness ‘temperature’ setting in models to zero.

2. Ensure the training data is 100% accurate.

3. Try models with a ‘retrievalaugmented generation’ feature, which forces the model to reference an external knowledge base, outside its original training dataset, when responding.

4. Train colleagues and customers on how to use the tools better; in particular, short, precise and direct prompts reduce the incidence of hallucinations.

So, if like the band Catatonia –musing about our X-Files heroes – you feel that “things are getting strange, and you’re starting to worry”, well, there’s likely good reason for it. It is also why as much effort needs to go into training humans as it does training machines. After all, the human brain is amazing and continues to be able to do most things far better than Gen AI. In particular, mathematics, which persistently

(Selected models)

5Microsoft Orca-2-13b3.20%

6GPT 3.5 Turbo3.50%

13Llama 3 70B4.50%

14Google Gemini 1.5 Pro 4.60%

15 Google Gemini Pro4.80

16Microsoft WizardLM-2-8x22B 5.0% 17Microsoft Phi-3mini-4k 5.10% 18Llama 2 70B5.10%

Claude 3 Sonnet 6.00%

Claude 3 Opus 7.40% 40Apple OpenELM -3B-Instruct 22.40% Public LLM leaderboard computed using Vectara's Hughes Hallunciation Evaluation Model, as at 14 May 2024

baﬄes even the most advanced generative models.

In our next article, we will examine the views of governments and regulators on the use of AI in the insurance and ﬁnancial services sectors.

Dr Artur Niemczewski is AI champion and a former board director at the CII and Chris Shadforth is communications director of the CII Group

PARTY POLITICS

Dr Matthew Connell looks at the key themes emerging from the main political parties’ manifestos

The UK election campaign gave us some important clues about the future, even though it paused work on new legislation.

Themes that appear in every election manifesto are not only likely to be a high priority for the government, they will also attract the interest of inﬂuential parliamentary committees.

A good example is apprenticeships. Labour promised “a youth guarantee of access to training, an apprenticeship, or support to ﬁnd work for all 18- to 21-year-olds”, the Conservatives promised an additional “100,000 highquality apprenticeships for young people”, while the Liberal Democrats promised to “replace the broken apprenticeship levy with a broader and more ﬂexible skills and training levy”.

It is certain that apprenticeships will continue to be at the centre of the skills debate and are likely to undergo a signiﬁcant amount of policy change during the next ﬁve years.

Inclusivity in the workforce was also a theme in the Conservative manifesto, as it pledged to “continue programmes to encourage more female and disabled entrepreneurs”. The Liberal Democrats promised to develop “measures to end the gender pension gap in private pensions”, while Labour promised to “introduce disability and ethnicity pay gap reporting”.

So despite talk of ‘anti-woke’ sentiment, it is clear that increased employment opportunities for underrepresented groups will continue to be a key component of an economy that is trying to make itself less dependent on immigration.

1 2

REFORMING THE LAW ON COMPENSATION AND APOLOGIES

One consultation that was completed just before the election looked at the law around the use of apologies.

In the past, insurers have given advice to clients to avoid making apologies, to avoid creating a liability that would not have existed otherwise.

This has contributed to a breakdown of public trust in the way in which large organisations handle tragedies. One stark example from 2006 involved the family of two children who died of carbon monoxide poisoning while on a holiday booked through Thomas Cook.

The family did not receive an apology until 2015, leading its CEO, Peter Frankauser, to say: “During the past nine years we failed to show the compassion that we should have shown to the family. That is probably the main mistake.”

The consultation asks if the current position in the Compensation Act (2006), that “an apology… shall not of itself amount to an admission of negligence…” should be updated, because “there is a sense that defendants remain very averse to offering apologies for fear of liability being admitted”.

The consultation examined several approaches to this issue, including legislation in Hong Kong that says “an apology will not constitute an admission of fault or liability even if it includes such an admission”. While the government said it was not minded to replicate this approach, it is looking for alternatives that can encourage the use of apologies, reducing stress for claimants and encouraging a speedier resolution of issues.

Given the obvious public trust dimension to this issue, it is likely that the new ministers at the Ministry of Justice will want to progress with this consultation. ●

Dr Matthew Connell is director of policy and public affairs of the CII

CHOCAPO

With the global shortfall of cocoa supply set to worsen, Praveen Gupta examines a potential solution that needs insurance market support

From the run-up to Valentine’s Day until Easter this year, cocoa prices hit a record high amid mass shortages.

The food product peaked trading at nearly $10,700 (£8,412) per metric ton – up more than 150% –thereby growing faster than bitcoin.

Pests, fungal infections and climate change threaten cacao trees and the chocolate they produce. So, in a worst-case scenario, could chocolate vanish completely if cocoa was to disappear? And can insurers help, not only through adaptation and resilience measures beyond traditional insurance but through innovation of new models?

SUPPLY CHALLENGES

According to the National Oceanic and Atmospheric Administration (NOAA), cacao can only grow within 20 degrees of the equator (either north or south), in areas with consistent humidity and rainfall. Which is why four west African countries – Ivory Coast, Ghana, Cameroon and Nigeria – produce almost 75% of the world’s cocoa supply.

According to climate.gov, the threat to chocolate supply comes from an increase in evapotranspiration, especially as higher temperatures projected for west Africa by 2050 squeeze more water out of soil and plants, which is not likely to be

accompanied by increased rainfall.

The cocoa market will be 374,000 tons short this season, up from a shortfall of 74,000 tons last season, according to the International Cocoa Organization.

There are two schools of thought. Firstly, the NOAA predicts cacao trees will go extinct as early as 2050. Ivory Coast and Ghana are expected to experience a 3.8°F temperature increase by 2050. That will most likely push the cacao farms out of the rainforests and up into cooler mountainous areas that serve as forest and wildlife preserves. That basically leaves a diﬃcult choice between two options – grow chocolate to meet global demand or preserve natural habitats.

The other school believes there may be a long-term, eco-friendly solution. Scientists at the University of California Berkeley have teamed up with global confection company Mars to save future cacao crops by tweaking the DNA of the species with gene-editing technology. According to Business Insider, the project will transform seedlings into a species that can survive drier, warmer climates.

“Forest-friendly cacao is quite a unique programme because it encourages shade-growing cacao by providing a premium or a bonus for

farmers, which incentivises them to be part of the programme,” says social scientist Natasha Constant of the RSPB.

INSURANCE INNOVATION

In Ivory Coast, the United Nations World Food Programme has introduced an innovative insurance solution to enhance climate resilience for smallholder farmers in rice and cocoa cultivation.

The programme aims to strengthen climate resilience among smallholder farmers by providing ﬁnancial protection against climate risks such as dry spells and excess rainfall.

The programme integrates weatherbased insurance, whereby farmers receive compensation based on speciﬁc weather impacts to their crops (e.g. droughts or heavy rainfall) and crop

CALYPSE

diversiﬁcation to help mitigate risks associated with relying solely on one crop.

This integrated approach aims not only to safeguard farmers but also facilitates access to credit and markets while having the potential to stabilize the entire value chain and promote long-term resilience. Meanwhile, research results from Sierra Leone demonstrate that the income generated through agroforestry cacao can be almost twice as high as that of monoculture. Moreover, it boosts livelihood and biodiversity.

The Nestlé income accelerator programme has demonstrated that high-quality pruning of income accelerator cocoa

farms contributed to a 32% increase in cocoa yields. The total net income of accelerator households rose by 38%.

The programme is helping cocoa farmers substantially improve cocoa productivity as well as increase their net income, with results showing a higher proportion of these households now achieving a living income.

Moreover, it has also effectively mitigated diseases and pests on farms, thanks to the implementation of good agricultural practices.

RAINFOREST DESTRUCTION

The agricultural expansion of cocoa in Ghana and Ivory Coast is the main reason both countries are losing their rainforests faster than any other country in the world, according to a recent study by The Rainforest Alliance.

WORLD'S BIGGEST COCOA PRODUCERS (IN TONS)

However, the three new non-cocoa chocolate startups wish to address “vast inequities” that exist in the traditional chocolate supply chain.

Johnny Drain, co-founder of WNWN Food Labs, believes the cocoa industry has been infamous for its non-sustainable practices, use of child labour and deforestation for decades.

US-based foodtech company

California Cultured uses cell culturing to create non-cocoa chocolate that is set to “welcome to a new age of sustainable and ethical chocolate”, according to Drain.

In addition, Germany-based Planet

A Foods, a new food science startup, says: “We were dreaming about a chocolate for which no trees had to be cut down, no precious water was wasted, no fragile ecosystems were disturbed and no child had to work.”

The supply side of insurance is surely looking up given fresh capital infusion in parametric solutions. New players are leveraging global trusted datasets for objective loss triggers and managing climate risk where traditional insurance fails.

Given the compelling reasons, the world of chocolate must quickly adopt sustainable practices all through its supply chain. Likewise, insurers, whether as providers of traditional crop insurance or innovative parametric covers must support ethical agriculture. Thereby not only giving chocolate a fresh lease of life but also freeing cocoa cultivation from the likes of slavery, child labour, deforestation and other non-sustainable practices. ●

Praveen Gupta FCII is a Chartered insurer, former MD and CEO

ROUTES TO SUCCESS

Vanessa Riboloni and Chris Shadforth explain how the CII is piloting a new approach to awarding CII membership via professional experience

Ask anyone how they came to work in the insurance profession and you’ll get a unique story.

It’s why the CII worked with hundreds of professionals across the ﬁnancial services landscape when we developed the Professional Map – a competency framework and career development tool that helps individuals identify personal training needs and assist with career development and planning, job applications and progression. At its heart are the competencies any insurance or personal ﬁnance professional needs to meet their business goals, drive good customer outcomes and succeed in their career. These competencies can be gained in different ways.

Those starting out in their careers are likely to acquire them through progressive study, working through high-quality learning matched by world-class assessment. Others will have gained them through experience, potentially from extensive careers in other professions.

Critically, we believe the acquisition of the competencies takes primacy over the method of their achievement. Ultimately, consumer

trust is derived from being exposed to the skills, knowledge and behaviours of professionals, not whether they can ﬁnd a certiﬁcate hanging on their wall.

That’s why the CII has been exploring alternative routes to accrediting the competencies set out in the Professional Map, beyond the learning and qualiﬁcations available through the CII itself.

Our work is taking several different routes, including accrediting the learning of other providers –ensuring their outputs reach our high standards – and recognising the competencies gained by professionals over their careers.

In particular, we want to increase accessibility to CII and Personal Finance Society (PFS) membership by helping those who should be our members to become our members by recognising their existing capabilities and qualiﬁcations. We want there to be an inclusive pathway to membership that recognises those who have developed on the job, have other academic achievements, or who are not otherwise able to take our qualiﬁcations.

PROFESSIONAL EXPERIENCE PILOT

To that end, the CII has been piloting an approach to awarding CII and PFS ‘Membership via Professional Experience’ in the past 18 months, akin to other membership bodies.

Exam and coursework assessments test knowledge, which focuses on the potential to work to a standard. If an individual has passed a speciﬁc exam, it is reasonable to assume they have the capability to undertake related tasks.

Experience assessments focus on the ability to work to a standard. The question being asked is, is an individual capable of carrying out

the activity required to an acceptable level?

The pilot set out to assess the competence of a small number of applicants with a view to ensuring that an assessment process based on experience could be as valid, reliable and robust as the equivalent standard for those obtaining CII or PFS membership through our qualiﬁcation route. The pilot was also intended to capture the operational requirements for its wider implementation.

Participants were recruited via an expression of interest dependent on detailed eligibility and suitability requirements (see box), with 11 individuals eventually taking part across two streams:

1. Direct entry to Fellowship of the CII.

2. Upgrade from DipPFS to Chartered membership of the PFS.

The Professional Map competency standards were used as the benchmark against which assessors evaluated the applications.

The assessment process included a combination of a written submission – providing tangible evidence of meeting the standards – followed by a professional discussion lasting

SUITABLE APPLICANTS

Eligibility and suitability for applicants in the pilot programme

Direct entry to FellowUpgrade from DipPFS to Chartered Financial Planner

A minimum of 10 years of insurance sector experience.

Able to provide evidence of operating at a strategic level for seven years of that time.

Able to demonstrate meeting the Professional Map standards outlined under Band 4.

Holding a minimum of a Level 6 qualiﬁcation or bachelor’s degree level qualiﬁcation obtained through other professional bodies or universities.

Able to nominate two senior sponsors who can corroborate the evidence you submit and are willing to take part in a short interview to this end.

Able to provide evidence of having contributed to the profession over and above the requirements of their role.

A minimum of seven years of ﬁnancial planning experience.

Able to provide evidence of operating at a senior level for at least ﬁve years of that time.

Able to demonstrate meeting the Professional Map standards outlined under Band 3.

Be a current DipPFS member.

Able to nominate two senior stakeholders who can corroborate the evidence you submit and are willing to take part in a short interview to this end.

Overview of the pilot process

● Applicant checks requirements

● Takes Pre-assessment questionnaire

● Submits application and qualiﬁcations

● Accesses online portal

● Gathers evidence and nominates sponsors

● Submits evidence via portal

● Takes technical discussion (Chartered)

● Takes professional discussion

● Sponsors are interviewed

● Receives outcome and verbal feedback

● Is awarded membership (or decision taken to not award membership) MEMBERSHIP BY

2.5 hours. Those applying for Chartered had to also submit a technical paper and take part in a technical discussion and those applying for Fellow provided examples of having contributed to the profession over and above the requirements of their role.

We invited stakeholders who had expressed an interest in the pilot to observe the process and participate in its evaluation, which proved to be very welcome and informative. Their views helped to reﬁne the process during its use and inform our next steps.

OUTCOME

As a result of the exercise, six applicants were upgraded from DipPFS to Chartered ﬁnancial planner and two applicants were awarded CII Fellowship. The others were unsuccessful for a variety of reasons. Following the pilot, focus groups and individual interviews were held. The main takeaways were that participants had underestimated the time and effort involved. They reported spending an average of 100 hours on the process, including

writing submissions that often extended well beyond 10,000 words. While quantity does not equal quality, it gives an indication of the time and effort that applicants put into their preparation.

The CII Group board reviewed the ﬁndings from the pilot and a comprehensive list of recommendations at their meeting in March 2024 and agreed that the next steps would be to:

● Run a further pilot to validate the recommendations made in this ﬁrst pilot, given the small number of participants.

● Pilot a Chartered route for general insurance.

We are currently looking for participants for this next pilot, speciﬁcally for direct entry to Fellowship of the CII and an upgrade from DipCII to Chartered Broker. To express your interest in joining, visit: forms.oﬃce.com/e/PuTKbEpUpz or for more information, email: professionalexperience@cii.co.uk ●

Vanessa Riboloni is professional capabilities and insight manager and Chris Shadforth is director of communications, both of the CII Group

TACKLING THE TALENT CRISIS

At the CII Network Conference, the CII New Generation Underwriting group 2022/2023 discussed its work on talent shortages in the insurance profession, Dr Matthew Connell takes a closer look at their ideas

No one sees the issues that insurers and brokers have with attracting new talent into the sector more clearly than people who have recently joined it. They have had to contend with obscure jargon, complex market structures and value chains, everchanging brands and the noise that comes from other sectors within financial services.

The CII’s New Generation programme provides a rare opportunity for these perspectives to be expressed. Each year, four groups, representing underwriting, claims, brokers and the London Market take on a project that they choose from scratch.

Because the groups themselves set their own agenda, the reports can challenge settled assumptions that are more entrenched among those who have been in the sector for much longer.

The Underwriting Group’s analysis certainly does not pull any punches. It outlines the challenges facing the profession, including:

● An aging population – it is currently estimated that 25% of the sector are due to retire within the next 10 years alone.

● A lack of interest in insurance – where only 4% of young people consider a career in the sector to be appealing.

● Competition from ‘sexy’ sectors such as tech. One piece of graduate research, carried out by Aviva in 2022, found that out of 1,000 students surveyed, only one in seven were interested in pursuing a career in the insurance sector, compared to the one in five who wanted to work in the public sector or the one in three who wanted to work in tech.

The New Generation Group worked with a number of key stakeholder groups to identify both the causes and the solution to the problem. They included new entrants, current practitioners with at least five years of experience and emerging risk area specialists. Risk specialists were given separate treatment, given the changing landscape in risk in areas such as climate change, cyber risk and political violence.

It found areas for improvement that included:

● Better engagement with social media, specifically, TikTok. This is where the vast majority of younger people are consuming their media, with some sources suggesting that Gen Z forms 60% of all TikTok users.

● Showcasing the work the insurance profession does and the work of those who are working hard behind the scenes to keep the sector delivering

for the public. The most effective way to do this is by making the profession more ‘real’ and ‘relevant’ to people outside the sector, allowing insight into its ‘inner sanctum’.

This will involve highlighting real people from all backgrounds, showing that the insurance profession can mirror the demographics which represent the UK. It will also mean interacting with school and university leavers in person to show how their work could influence issues such as climate change and political risk.

TARGETING TALENT

The consensus across those who were interviewed was that there needs to be a coordinated and targeted approach towards talent attraction, as opposed to seeing various companies ‘fighting it out’ as they try to secure new and emerging talent.

The group identified the CII’s local institutes as an excellent means to achieving these crucial changes. It found that there was great appetite and desire from each of the local institutes, but there were several

challenges that impacted on their ability to drive talent attraction efforts forward. Volunteers have limited time to pitch for talent and, as a result, they need the very best resources to present a compelling case. While many excellent resources already exist, insurance is competing with some of the most attractive occupations in a market where employers and sectors are constantly refining their offering for highly skilled professionals.

The analysis proposes a structural solution for the CII, that includes a mixture of more focused volunteering and greater support for volunteers. This would include virtual support for volunteers, that would consist of relevant and up-to-date material.

The New Gen analysis is ambitious and demanding – but the risks of ignoring its perspectives are profound, both for the profession and the public it serves ●

Dr Matthew Connell is director of policy and public affairs of the CII

We are going through a costof-living crisis –everyone is facing higher food prices and most are facing higher housing costs. Everyone is looking for a bargain, so the cheapest way to buy goods and services must be the answer everyone is looking for – or is it?

The CII’s Public Trust Index measures outcomes for consumers against nine key factors, including the amount people pay for insurance. These factors are:

● Protection: does the insurance policy cover the right risks?

● Conﬁdence: will the insurance company deliver on its promises at the crucial moment?

● Ease: how easy is it to set up an insurance policy with the insurer?

● Price: is the policy a reasonable price for the service given?

● Relationship: does the insurer understand the customer as an individual?

● Loyalty: does the insurer recognise the loyalty of longstanding customers?

● Control: how much control does the customer have over the way the claim is paid, in order to minimise disruption to their lives and businesses?

● Speed: how quickly are claims paid?

● Respect: do customers feel that they are being treated as customers or potential fraudsters during the claims process?

In our latest edition of the Trust Index, which took place up to March 2024, we looked at public perceptions of the outcomes they receive from their insurer, based on how they bought their policy.

We found that a majority of consumers taking part in the survey bought their insurance through comparison sites and purchases direct from a provider, with 74% of consumers buying through these channels. However, more than a quarter of the consumer market is divided evenly between brokers, banks and building societies, as well as other channels such as retailers (including supermarkets or car dealerships) and employers.

When we looked at the ratings consumers gave for performance against eight of the nine key factors (we will

THE POWER OF ADVICE

The latest CII Public Trust Index results show that brokers’ advice is key to solving the loyalty riddle

look at loyalty separately, later in this article) we found that consumers who bought through a broker consistently rated the performance of their insurer higher than other channels. The scores for assessing performance were:

Here we can see that brokers outperformed all other channels, including price. The much-maligned price comparison sites matched brokers for ease of doing business, and performed well against banks and building societies, especially on claims factors such as speed of claims and respect shown during the claims process, but it was brokers who emerged as the clear winners.

THE LOYALTY PREMIUM

When the Financial Conduct Authority (FCA) launched its rules on

general insurance pricing in 2021, it said markets are “failing to achieve fair value for those consumers who are paying a loyalty penalty”.

It went on to say: “Our remedies are designed to improve competition in these markets by preventing ﬁrms from price-walking customers and ensuring they deliver fair value.”

The CII supported the FCA’s actions, saying “it is welcome the regulator has stepped in with a plan to end the practice of price-walking once and for all”.

While we still support the FCA’s actions, it is clear that the beneﬁts of the new rules have not got through to retail consumers.

In our last edition of the Trust Index, based on interviews with 1,000 consumers in December

2023 and February 2024, we found that the gap between expectations and performance for loyalty – in other words, the gap between how importance customers think this issue is, compared to how well they think their insurer is performing – is even wider than when the FCA’s rules came in.

Given how well insurance brokers had performed on eight of the nine key factors covered by the Trust Index, we looked at what customers thought about their insurer’s stance on loyalty, based on how they purchased their insurance.

We found that on the loyalty issue, consumers rated brokers’ performance as better than any other form of buying insurance –just as they did with all the other factors. In terms of the size of the gap between expectations and reality, brokers were more likely to meet expectations than any other form of buying insurance, except ‘other’ (which includes buying through retailers and employers).

THE IMPORTANCE OF USING A BROKER

The results of this edition of the CII’s Public Trust Index underline the importance of interactive advice to consumer understanding. While some may see the services brokers offer as simply a cost to the consumer, it is clear from this evidence that if insurers want to achieve the highest outcomes levels of consumer understanding, a tailored explanation from an adviser is essential.

And what is true for consumer understanding is also true of other even more important elements of the service – including conﬁdence that the product will pay out, the way customers are treated at the point of claim and even perceptions of value for money. When it comes to consumer outcomes, the advice given by brokers should never be left out of the equation. ●

Dr Matthew Connell is director of policy and public affairs of the CII

The insurance and personal ﬁnance professions have traditionally been viewed by some as slow to change and having diﬃculty in attracting and retaining young talent. However, in an evolving job market, the sectors have seen a positive shift in how they attract and nurture talent through building positive workplace cultures and implementing robust apprenticeship programmes. These initiatives aim to increase the attraction to the sector and help retain younger talent.

The CII hosted a continuing professional development (CPD) webinar to explore the importance of employing the younger generation and developing a youthpositive culture. Claire Bishop, career partner manager at the CII, led the webinar and was joined by: Victoria Ayodeji, freelance communications and education consultant; Lesley Bigby, early careers consultant at Aviva; and Sian Robertson, director of programme and operations at Career Ready.

The panel opened the webinar by agreeing that fostering a youthpositive culture can revitalise the sector by bringing in fresh ideas and innovative approaches. Creating an environment that values and supports young professionals is crucial for longterm success and sustainability.

Bigby emphasised that employers need to ﬁrst reﬂect on their current culture and take appropriate actions to ensure it meets the needs of future talent.

MODERNISING RECRUITMENT

The main concern around recruitment comes from a disconnect between what a young person thinks employers want versus what an employer actually wants. Research shows that young professionals are refraining from applying to jobs within the sectors due to the consistent concern of lack of experience.

Bigby explained how Aviva’s early career pathways recruitment practices now eradicate the need for evidence of past experience but instead require individuals to provide examples from everyday life. “Aviva are looking at the unique individual and demonstrating

YOUTHPOSITIVE CULTURE

Molly Burchell examines the importance of developing a youth-positive culture in the insurance profession

curiosity and resilience throughout their application, which are strengths that are evidenced not just in the workplace but through hobbies, school and even holidays,” she said. Thus, ensuring that employers are making it clear what they are looking for through their application process can help entice more individuals to apply for insurance or ﬁnancebased roles.

CREATING OPPORTUNITIES

Apprenticeships in both sectors are an effective way to cultivate talent, beneﬁting both individuals and

employers. By providing a structured pathway for skill development and career progression, apprenticeships help shape the future workforce of the profession.

These programmes offer a structured path for individuals to gain practical experience, professional skills and industry knowledge while earning an income. While universities continue to supply graduates for entry-level positions, the value of

apprenticeships has been increasingly recognised for bridging the gap between academic learning and real-world application. However, the challenge lies in advertising and recruitment.

“It is really important to ensure that when it comes to recruiting and learning more about the industry, we share stories,” Ayodeji told the group. “Sharing real stories with younger people exposes the industry in a new way and gives employers the opportunity to paint the industry in a new light based on their experiences.”

Highlighting industry stories and utilising social media channels are crucial, the panel agreed.

“If we want to shout about how beneﬁcial apprenticeships are, then

sharing testimonials from younger people who have been through apprenticeship programmes is the perfect way of showcasing the brilliance of the insurance industry,” added Ayodeji.

MENTORSHIP

Another avenue discussed was using professionals and experts within organisations, by offering mentorship schemes. Pairing young professionals with experienced mentors can provide guidance, support and career advice. Ayodeji said: “Mentorship helps build conﬁdence and self-esteem, allowing young professionals to put themselves forward for different opportunities.”

With Robertson emphasising: “We should ensure young people focus on the importance of building transferable skills.”

Ayodeji went on to explain the signiﬁcance of showing that every talent, skill, strength, or ability has a place in the industry: “It is just not celebrated enough. We are an industry that is misunderstood by young people and there is a huge amount of demystiﬁcation needed around the roles available within the industry.”

With the insurance profession having been around for more than 300 years, it has continuously adapted to societal changes. The crucial element is to communicate this adaptability to future generations.

Creating a youth-positive culture and implementing robust apprenticeship programmes in the insurance and ﬁnance industry is not just a strategic advantage but a necessity in today’s rapidly changing business environment. This cultural shift will enhance innovation and adaptability, ensuring the long-term vitality and success of the sector.

To listen to the full webinar on demand, visit: https://t.ly/lBIR0 ●

Molly Burchell is communications executive of the CII

MAINTAINING CREDIBILITY

Dave

Mooney explains the importance of ﬁrms using corporate Chartered titles correctly

The CII has granted corporate Chartered status to more than 700 firms that meet the strict criteria and high standards required. The firms hold one of four available corporate Chartered titles: Chartered Financial Planners, Chartered Insurers, Chartered Insurance Brokers and Chartered Insurance Underwriting Agents. These firms vary in size, location and services, while each firm’s approach, culture and values will be unique. However, all Chartered firms are united by their commitment to going beyond the minimum requirements of the regulators and legislation when it comes to clientcentricity, developing their staff and contributing positively to the profession and wider society.

Corporate Chartered status is something to truly be proud of, as it demonstrates ongoing commitment to high standards of ethics and integrity. It is therefore paramount that we maintain its credibility, not only to recognise the ﬁrms who have committed to higher standards, but more importantly as a demonstration of achieving a positive public impact, as we seek collectively to build and maintain public trust in the insurance and personal ﬁnance professions, as outlined in our Royal Charter.

All Chartered ﬁrms are entitled to use the CII corporate Chartered marks and taglines to promote their commitment to professionalism. To support

ﬁrms in promoting their corporate Chartered status appropriately, the CII provides toolkits containing guidance and usage guidelines on using the Chartered marks.

CONSEQUENCES OF MISUSE

We do encounter instances where Chartered titles are used inappropriately or without proper permission. The overwhelming majority are an innocent misunderstanding and swiftly rectiﬁed. However, as these Chartered titles are intellectual property of the CII, consequences of misuse can be signiﬁcant, including legal action. The CII takes any inappropriate use of its Chartered titles very seriously as it has the potential to cause public confusion and reputational damage to the CII and members who have committed to higher professional standards. Therefore, it is vital that Chartered titles are used appropriately and only by those eligible to do so.

EXAMPLE OF INAPPROPRIATE USE

One of the more common examples of misuse that we come across is where a firm is using the individual Chartered mark in a way that could imply the firm has corporate Chartered status. This is typically where the firm employs an individual who holds Chartered status, but the firm has failed to clearly distinguish the individual’s accolades from the firm. While there are separate marks and tag lines for individuals who are Chartered and firms that hold corporate Chartered status, if not used appropriately they can be misleading.

While the CII makes every effort to identify misuse of corporate Chartered titles and address them, we recognise that it is not possible for us to pick up on every instance. We are therefore very grateful to our members and the wider public for flagging examples of potential misuse to us, as and when they come across them, for investigation. We have a collective responsibility to ensure that the public are not misled by those wishing to take advantage of the reputation of our respected Chartered firms. If you suspect that a firm is misusing a corporate Chartered title, please contact the CII by emailing complaintsagainstCCSfirms@cii.co.uk. The CII will consider the information and take appropriate action.

If you have any questions regarding Chartered status, ﬁrms can contact our corporate team directly on 020 8530 0818, or via Charteredﬁrm@cii. co.uk for information and guidance. ●

Dave Mooney is professional standards and risk coordinator of the CII

THRIVING FUTURE

Laura Hancock highlights a valuable year so far as well as what the CII Broking Community will be offering members for the rest of 2024

So far, 2024 is proving to be another busy year for the CII Broking Community board. At this halfway point in the year, we can be proud of what we have achieved and excited for what is to come. Our commitment to supporting the CII’s broking membership through practical, relevant and timely business advice and support has been our guiding principle.

This year, our initiatives have been diverse and impactful. We have written articles for the trade press, shedding light on crucial topics such as the insurance market cycle. These pieces have provided valuable perspectives and analysis, helping our members to navigate the complexities of the current market environment.

One of our highlights was taking part in a webinar focused on the various entry points to an insurance broking career. This session not

only highlighted the pathways into our industry but also addressed the broader issue of attracting and retaining talent in insurance.

We have enjoyed supporting the 2024 CII New Generation broking cohort. Their project has been a source of inspiration and innovation and we are proud to have played a part in their journey. Their fresh perspectives and enthusiasm are crucial for the ongoing evolution of our industry.

THOUGHT LEADERS

Our presence at the British Insurance Brokers’ Association (BIBA) conference was marked by a signiﬁcant opportunity to discuss key issues facing broking today. I had the privilege of being interviewed by Insurance Business, where I shared my thoughts on some pressing matters. This platform allowed us to highlight the challenges and opportunities within our sector, reinforcing our

commitment to thought leadership. We were also delighted to be offered the opportunity to curate a session for the fringe stage at this year’s BIBA conference in Manchester. Our panel session, titled ‘Thriving in an evolving landscape,’ was a resounding success. We are grateful to Charlie Upton of PIB, Peter Robinson, of Prizm Solutions and Yasmin Van Der Veen, of Marsh, for taking part. We addressed the dynamic changes impacting insurance broking professionals and provided actionable insights for thriving amid these changes. The packed audience and the engaging interactions that followed were a testament to the relevance and importance of the topics we covered. We are immensely proud to have brought this session to BIBA on behalf of the CII Broking Community board. Looking ahead, we have a robust plan for the remainder of the year. Our upcoming initiatives include newsletter pieces and articles in The Journal, ensuring a steady ﬂow of valuable content for our members.

We are also focused on actioning the fantastic work undertaken alongside our fellow Community boards at the CII Network Conference in June. These collaborations allow us to pool our expertise and shape new outputs that will beneﬁt the entire CII membership.

For up-to-date content and guidance from the CII Broking Community, join our LinkedIn page at: www.linkedin.com/showcase/ cii-broking-community ●

Laura Hancock is chair of the CII Broking Community board

OUR COMMITMENT TO SUPPORTING THE CII’S BROKING MEMBERSHIP THROUGH PRACTICAL, RELEVANT AND TIMELY BUSINESS ADVICE HAS BEEN OUR GUIDING PRINCIPLE

UNLOCKING POTENTIAL

Laura Hancock and Emily Kenna discuss the beneﬁts of apprenticeships for insurance broking ﬁrms

The insurance broking profession is one that young people should genuinely aspire to.

In today’s dynamic job market, it is essential to ﬁnd a career that not only offers stability but also provides a wealth

of opportunities for personal and professional growth. Insurance broking is precisely that.

The CII Broking Community is working hard to promote the virtues of entering a profession that offers boundless opportunities for development, regardless of your personality or skillset. Whether you consider yourself to be introverted, extroverted, a people person,

a numbers person, analytical or strategic, insurance broking has roles for everyone.

For those who thrive on interpersonal connections, broking presents numerous client-facing roles where building and maintaining relationships are key. If you are more analytically inclined, the profession offers positions that involved detailed risk assessment and data analysis. Strategic thinkers will ﬁnd themselves at home in roles that require planning and foresight to navigate complex market conditions and secure the best outcomes for clients. Brokers must assess their team’s skillsets and develop and nurture people in roles that align with those abilities. This process is often complex and non-linear.

Talent acquisition is frequently cited as one of the top three challenges for insurance broking ﬁrms in 2024. Insurance brokers have to ﬁnd individuals who not only possess the necessary skills and knowledge to carry out the role, but also demonstrate the adaptability and strategic thinking necessary to grow in this profession. One of the most effective solutions to this challenge is

to utilise apprenticeships to cultivate new talent.

WHERE TO START?

Let’s assume that you want the apprentice to do insurance-specific qualifications. Apprentices can do a multitude of different courses including HR, admin, finance, IT and more.

1. You need to find a training provider. For insurance-specific qualifications, a list of those available can be found at: www.findapprenticeshiptraining. apprenticeships.education.gov.uk/ courses/60/providers

2. The above link is for a Level 3 course, which means the apprentice will reach Certiﬁcate level usually within 12-24 months. You can opt for other apprenticeships, including Level 4 to reach Diploma (Dip CII) and Level 6 for Advanced Diploma (ACII).

3. Once you have selected a training provider that ﬁts with your requirements, you can place an advert on the government website. For guidance, have a search for some other businesses that have placed ads: www.gov.uk/apply-apprenticeship

4. School leavers know about government apprenticeships, so they are actively looking for jobs on the portal, especially as they near the

end of their studies between March and May.

5. When you have selected the right apprentice, they will need to have the equivalent of one day a week devoted to their studies. You need to pay their salary and train them on the job, but 95% of the qualiﬁcation training and exam costs will be picked up by the government where you are a smaller broking ﬁrm. The overall cost of this varies but is usually about £9,000 (you pay £450 of this).

For more information, start with a training provider. They will be able to guide you through the process.

THE INVESTMENT BY THE FIRM

The financial cost of apprenticeships is relatively low but the time investment is substantial. Companies must provide apprentices with meaningful work experiences that complement their formal training. Just as with any employee, a tailored programme should be developed for each apprentice. Ongoing supervision and mentorship are essential to guide apprentices through their journey. Bridging the gap between theory and practice is crucial, requiring firms to contextualise the apprentice’s studies with their specific role and the broader business. Additionally, HR departments will handle compliance and administration of the apprenticeship, while line managers will oversee ongoing career development.

THE OUTCOME

Once broking ﬁrms have employees who have successfully completed an apprenticeship, they gain team members grounded in the fundamental principles of insurance. These individuals understand their role and the business’s place within the insurance ecosystem. With a formal qualiﬁcation and a solid work ethic, they are well equipped to advance within the broking profession.

DIVERSITY AND INCLUSION

The broking profession is committed to enhancing diversity and inclusion within the sector. Entry points into insurance range from school leavers and graduates to individuals transitioning from other professions. Whether you are a recent school leaver, a returning parent, or someone starting a career later in life, apprenticeships offer a pathway into a profession where top jobs are accessible to all and are not reserved solely for graduates. ●

Laura Hancock is chair and Emily Kenna is a board member of the CII Broking Community board

TRUSTED ADVISERS

Tim Groves reports on the CII fringe session at this year’s BIBA Conference, which explored how brokers can thrive in the evolving landscape of insurance

Each year at the British Insurance Brokers’ Association (BIBA) Conference, the CII Broking Community board hosts a fringe session aimed at supporting brokers. This year, the group focused on the challenges and opportunities that are currently facing insurance brokers and discussed what strategies could be explored to navigate these.

The panel featured Laura Hancock, chair of the Broking Community board and managing director of Yutree Insurance; Peter Robinson, managing director of Prism; Charlie Upton, regional managing director of PIB; and Yasmin Van Der Veen, account

executive at Marsh and former member of the CII New Generation broking group.

Hancock began the session by asking what each of the panel’s organisations is doing to address the issue of attracting and retaining talent in the broking profession.

“We are trying to change the way we talk about our industry,” said Upton. “Many people talk about how they fell into the profession by accident, which doesn’t help to show it as a sector that people should choose to enter. The profession has a huge amount of opportunity and so many more varied roles than there once was. We need to do more to advertise these opportunities

to young people as a career. It is no longer simply about being an account handler and then eventually becoming an account executive; there are risk management roles, claims roles, data roles and many more. Talent is limited, we know that, so we need to create more excitement about the career.

“Retaining staff is diﬃcult,” he continued, “and we will often see bidding wars between brokers for staff, but we have found the key is making sure our people are engaged. At PIB we have launched a programme that enhances the feeling of belonging. We want our people to feel part of a community and part of something positive.”

Hancock asked the panel: “One way for brokers to thrive is to evolve and differentiate themselves. How do you think brokers could do this?”

“It really is tricky as brokers are all selling the same products, so one of the main ways to differentiate is through a good investment and commitment to learning and development,” Van Der Veen explained. “Whether through the

CII or internally at an organisation, it can help you to stand out by demonstrating strong knowledge and professionalism.”

Hancock agreed: “We have chosen to be a CII Chartered broker and we know it helps us to stand out as trusted advisers, not just sellers of insurance.”

CAPACITY CRUNCH

One particular challenge for brokers in recent years has been capacity, with new insurers coming into the market and some exiting certain areas. So, how are the panel members’ ﬁrms navigating this?

“We have found that capacity has reduced on several occasions, which makes it hard to plan a long-term approach with clients, while often there is little notice from a provider when they are going to pull capacity,” Robinson explained. “We have found we need to rely more and more on MGAs to survive. Ideally, we want long-term capacity with insurers and a commitment to a timeframe, but it deﬁnitely has been an issue.

“As a broker you need to have as many strings to your bow as possible, which is why events like BIBA are so important. It is a great chance to discover opportunities that are out there.”

The last few years have been heavily impacted by external events and it has been a challenge for the industry, with Brexit, the Covid-19 pandemic, the war in Ukraine and other geopolitical events being major factors. Hancock asked the panel how they felt brokers could navigate this market cycle against such a diﬃcult backdrop.

“It is surprising how many clients don’t understand how events around the globe impact our world and how it affects prices and costs going up and down,” said Upton. “So helping them to understand this is really valuable. Relate it to their world as no doubt their own supply chains will have seen prices rise and energy prices at their premises will have risen. We also have political uncertainty on the horizon, with elections in the UK and US both potentially resulting in change of governments.

“With costs rising everywhere, clients are often looking for cheaper alternatives so we also have to help educate the client that cheaper providers aren’t always best,” he added.

SERVICE LEVELS

The session ﬁnished with a discussion involving the audience about whether insurance service since the pandemic had remained strong, with many professionals now working from home or remotely.

Hancock said she had spoken to a huge number of brokers during the two-day conference and that many did feel the insurance sector had some strides to make.

“I feel that brokers have adapted post-pandemic but that insurers are

WHETHER THROUGH THE CII OR INTERNALLY AT AN ORGANISATION, IT CAN HELP YOU TO STAND OUT BY DEMONSTRATING STRONG KNOWLEDGE AND PROFESSIONALISM

still struggling to provide the service that was received pre-pandemic,” said Hancock.

“We are ﬁnding that many insurers are still working from home, which does appear to have an impact on the service that is being received postpandemic,” agreed Van Der Veen.

“We have seen some progress with improved portal functions and some have implemented live chat systems, but it does feel that this is still a major issue that needs more input from brokers and insurers to ultimately serve our clients to the excellent standards both they and we expect.” ●

Tim Groves is programme development and partnerships manager of the CII

THE SOCIAL OF ESG THROUGH AN EDI LENS

Adrian Golifer and Mark Wells discuss how insurance professionals can enhance inclusion via external and internal networks

In recent years, the environmental, social and governance (ESG) framework has gained signiﬁcant traction within the corporate world.

As our insurance profession continues to embrace ESG principles, the ‘social’ aspect, particularly equality, diversity and inclusion (EDI), has become a focal point. As a diversity and inclusion oﬃcer at the Insurance Institute of Manchester (IIM) and chair of its Miindful Wellbeing Network, I have witnessed ﬁrst-hand the transformative power of EDI. With insight from Mark Wells, co-chair of LINK Up-North, this article explores how internal and external networks can drive meaningful inclusion.

EDI IN INSURANCE

EDI is not just a moral imperative; it is a business necessity. In the insurance profession, fostering an inclusive

environment can lead to improved employee morale and retention, enhanced customer satisfaction and a stronger corporate reputation. It is no surprise that UK regulators are currently ﬁnalising rules on how EDI should be embedded throughout our industry. Further research shows that diverse teams are more innovative and better at problem solving, which is crucial in a sector that relies on understanding and mitigating risks.

For instance, a study by McKinsey found that companies in the top quartile for gender diversity on executive teams were 25% more likely to experience above-average proﬁtability, underlining the tangible beneﬁts of effective EDI policies.

INCLUSIVE CULTURE

Internal networks play a vital role in fostering an inclusive culture. Employee resource groups, for

example, provide support and a voice for underrepresented groups within an organisation. These groups create a sense of community and belonging, which can signiﬁcantly impact employee engagement and retention. Mentorship and sponsorship programmes, including for example the CII’s Connect e-mentoring platform, are equally important. By connecting junior employees with senior leaders, these initiatives help with career development and reducing biases. Regular EDI training for all employees ensures that inclusivity is ingrained in the organisational culture.

At the IIM, we have taken several initiatives to promote inclusion. The Miindful Wellbeing Network, for example, offers a range of programmes and events aimed at supporting mental health and wellbeing. Pride month is always recognised by the Institute; and Institute members, friends and their families will once again walk in the Manchester LGBTQ+ Pride Parade this August. These initiatives not only foster a supportive work environment but also highlight the Institute's commitment to EDI.

EXTERNAL NETWORKS

While internal networks are crucial, collaboration with external networks can further enhance EDI efforts. Partnerships with EDI-focused organisations and charities allow for the sharing of best practices and resources. Participation in industrywide EDI initiatives and forums fosters a broader sense of community and commitment to inclusion. For example, the IIM regularly partners with external networks to host joint events, conferences and workshops. Many of the crossindustry networks (www.cii.co.uk/ about-us/supporting-diversity-inthe-profession) are active outside of London. This includes iCAN and LINK, which both run networking and educational events (in-person and virtual) across Manchester and beyond.

SUPPORTING WELLBEING

The Miindful Wellbeing Network at the IIM is a prime example of how internal networks can support EDI efforts. Our network aims to promote mental health and wellbeing as part of the broader

EDI agenda. Through a series of workshops, support groups and awareness campaigns, we provide a safe space for employees to discuss their mental health challenges and seek support.

Members of the network are trained as mental health ﬁrst-aiders, and testimonials from our events highlight the positive impact of the network. One member said: “Being part of the Miindful Wellbeing Network has been life-changing. It has given me the courage to speak openly about my mental health and seek the help I needed.”

These personal stories underscore the importance of such networks in fostering an inclusive and supportive work environment.

FUTURE DIRECTION

As we look to the future, the importance of EDI within the insurance profession will only continue to grow. Emerging trends such as the increased focus on mental health, intersectionality and the inclusion of neurodiverse individuals will shape the EDI landscape.

The ‘social’ aspect of ESG, particularly EDI, is vital for the insurance industry’s growth and success. By leveraging both internal and external networks, organisations can drive meaningful inclusion and create a more supportive and innovative environment.

As a member of the IIM, I encourage you to actively participate in EDI initiatives, and consider joining the Miindful Wellbeing Network.

I am certain that with your help, together we can build a more inclusive and equitable future. ●

Adrian Golifer is chair of the Miindful Wellbeing Network and diversity coordinator of the Insurance Institute of Manchester

Mark Wells is co-chair of LINK Up-North – the LGBTQ+ Insurance Network

SETTING THE STANDARD

Esther Brooks speaks to Imogen Mills, this year’s winner of the prestigious Rutter Medal

The Rutter Medal is a prize given annually to the best new Fellow of the CII, awarded to the candidate that has achieved the highest mark for their dissertation.

This year, Imogen Mills received the silver-gilt Rutter Medal –which takes its name from one of the CII’s founding fathers,

Sir Frederick William Pascoe Rutter – alongside a cash prize of £1,000 for her dissertation, which examined whether environmental, social and governance (ESG) risks cause an increase in director’s and oﬃcer’s (D&O) claims for the ﬁrm at which she is an underwriter, specialist commercial insurance provider CNA Hardy.

“ESG is an area of interest for me because the set of standards demonstrates how companies intend to contribute towards a better future,” Mills explains. “I attend seminars that focus on ESG matters and I am concerned the emerging risks could impact CNA’s loss ratio in the future.

“As an underwriter, I would like to understand if CNA can expect a rise in ESG-related D&O claims and identify ways to improve the underwriting stage to minimise exposure to these claims, thus reducing the potential impact this has on the loss ratio.”

GREATEST ACHIEVEMENT

“Receiving the Rutter Medal award was unexpected to say the least,” Mills tells us, having been notiﬁed of the honour by a letter from CII president, Ian Callaghan. “Completing the Fellowship was one of my greatest challenges to date and I am honoured to be awarded this prize and gain the recognition that comes with it.”

Mills adds: “My journey to becoming a Fellow involved several years of continuous hard work and it came with many learning curves. I ﬁrst started my Cert CII during

lockdown because I wanted to improve my technical skills and widen my insurance knowledge. With the satisfaction that came with passing each unit, was the encouragement to keep the momentum going and progress to the next qualiﬁcation. It was an enjoyable and rewarding journey and I also met some inspirational people who have become good friends.

“Being a Fellow of the CII is my greatest achievement. It demonstrates to me, my employer and other professionals that I work with in the industry that I have a high level of professionalism through the commitment I made,” she says.

“As a female working in the insurance market, while things have improved, it can be challenging navigating around what is still a male-dominated industry. A strategy of mine is to develop my skills and expertise, so obtaining the highest insurance designation would help with this. Receiving the Rutter Medal award only improved this strategy and has made me more conﬁdent.

“I hope this also encourages other females in the industry to obtain their professional qualiﬁcations and excel themselves while working towards their career goals,” Mills concludes.

To find out more about the CII Fellowship, visit: www.cii.co.uk/ learning/qualifications/fellowshipqualification ●

Esther Brooks is assessment manager at the CII

WOMEN IN INSURANCE

The history of women working in the insurance sector is longer than many would expect, as the Insurance Museum reveals

Before World War I, female employment was almost exclusively found within agriculture or in domestic positions.

So, you may be surprised to learn that a small number of women worked within insurance as far back as the late 18th century.

The Insurance Museum (IM) explores how insurance, as a sector, was a leader in many new business developments, including marketing, branding, the use of agents, corporate takeovers and expansion overseas. And while employing women in business roles was unusual, it happened within insurance, decades before other industries.

Anna Stone, an archivist at Aviva, tells us that the earliest evidence of women working in insurance – found in the Aviva archives – is 1797, when records show that a Mrs Elizabeth Stimson was appointed agent for Norwich General Assurance in Cambridge, to replace her deceased husband Richard. Anna explains that

it was not unusual for women to replace their husbands on their death, and that you’ll ﬁnd other examples of this happening throughout the 19th century.

As early as 1855 Prudential employed women as canvassers, who encouraged working-class housewives to take life insurance policies. Once potential business was identiﬁed, female canvassers would receive a commission and pass the new business onto a male agent.

It was widely assumed that women were temperamentally better suited to undertake routine, repetitive tasks, as well as providing a cheap and ﬂexible workforce, for an expanding insurance market. A Liverpool clerk’s journal in 1888 stated: “Such work as copying out policies, which could be done almost if not quite as well by girls as by men… at a considerable reduction of costs.”

FEMALE FLOURISH

The ﬁrst female clerks entered insurance in 1871, as employees of Prudential. Qualiﬁcations were

important in the selection process, but successful applicants “must all be the daughters of professional men”, as stated in The Oﬃce magazine in 1890. Female candidates were generally young middle-class women who could afford to take on poorly paid jobs and expensive training. Business colleges ﬂourished, often run by female entrepreneurs offering tuition in shorthand, typewriting and bookkeeping.

From the 1870s until the 20th century, women in insurance were employed exclusively in clerical roles, such as copying letters and ﬁlling in forms. Then in 1919, the CII lifted the bar on women sitting exams, and women were encouraged to advance their formal insurance studies.

Some 50 years on, in 1969 Countess Inchcape was welcomed into the market as Lloyd’s of London’s ﬁrst female underwriting member –although she was not allowed in the Room (where brokers and underwriters still meet) and could only conduct business through a male agent.

In 1973, Liliana Archibald was the first female broker at Lloyd’s. In 1976, Kate Sliwinska became the first female underwriting member allowed to conduct business in the Room and in 1996, Mel Goddard became the first female active underwriter (for QBE). Today, 51% of underwriters are female.

In 2014, Lloyd’s appointed its ﬁrst female CEO, Dame Inga Beale, and Aviva has been headed up by Dame Amanda Blanc since 2020.

However, despite signiﬁcant progress, women are still underrepresented in leadership positions. ●

OB Brand Consulting, with thanks to Victoria Phoenix, Insurance Museum history ambassador and Anna Stone of Aviva

To ﬁnd more fascinating stories on the history of insurance, visit online exhibitions or become an Insurance Museum member, go to: www.insurance.museum. CII members will receive 20% oﬀ their membership fee by using code IMCII2024.

HOLDING UP A MIRROR TO YOUR DEVELOPMENT

The CII’s Charlotte Ferson provides a refresher on the what, how and why of CPD

Continuing professional development (CPD) is a cornerstone of professionalism and sets CII members apart from those who do not hold professional membership. It not only provides a hallmark of quality but also a reassurance to clients that the professionals with whom they engage are committed to a process of ongoing learning and professional development, so they are fully equipped to meet all their needs.

On an individual level, it allows members to develop their careers, respond to the fast-changing world, facilitate specialisation and refresh their learning. While it is a regulatory requirement for those CII members who hold a Statement of Professional Standing, the obligations and beneﬁts of CPD apply to all CII qualiﬁed members and it is enshrined in the CII’s Code of Ethics:

1.4 You must comply with this Code and all relevant laws and regulations. This includes but is not limited to: meeting any continuing professional development requirements.

A crucial element of CPD is the reﬂection that must accompany

each CPD activity. This reflection allows for the solidification of all the benefits of CPD for both yourself and the reputation of CII members as self-reflective and considered professionals.

REFRESHING THE BASICS

All CII members are required to complete a minimum of 35 hours of CPD over a 12-month period, of which a minimum of 21 must be structured. Structured CPD is usually CPD that’s led by a third party and is formal in nature, such as internal or external training or webinars. Unstructured CPD will likely be knowledge gained incidentally, such as general reading, discussions or meetings. All CPD activities have to be at least 30 minutes (unless bitesize).

CPD RECORDING TOOL

The CII has developed a CPD recording tool, which is free to all members. This allows you to record your CPD and includes labelled boxes that set out the required information. We recommended that you record your CPD on a rolling basis via this tool, so you have an easily accessible single snapshot of your CPD, which means you can better plan your CPD

during the year. You can access the tool at: www.cpdscheme.cii.co.uk

EXAMPLE – CPD RECORD

These speciﬁc elements must be included in a CPD record, for example: Name and description of the activity: Cyber risk training (webinar) Date and duration of the activity: 01/07/2024, 60 minutes

Structured or Unstructured: Structured

Development need: To ensure I am aware of cyber risks in our new IT system and to reduce the risk of loss of sensitive client data.

Learning outcomes: Describe the nature of cyber risks in new technology; explain the processes and procedures to reduce loss risk; summarise the escalation process for data breaches.

BITESIZE LEARNING

Activities of less than 30 minutes that share a common learning outcome can be grouped together. Example – six ﬁve-minute mini tests that all relate to updates in regulatory changes.

Reﬂective statement: This webinar met my development need and I now understand the new technology, the risks and, more importantly, how to mitigate those risks. I found the task on data breach reporting interesting and gained a greater understanding of the organisation’s internal processes. It was a good introduction to the subject and I will consider taking a longer course on the wider issue.

All CPD activities you record require a reﬂective statement and it is perhaps this element that poses the greatest challenge to members. It may feel like an add-on, particularly where you are clear that the CPD activity has been understood

or even where you have been tested. Yet reflection is key to the integration of the knowledge into practise and to allow for future planning. It turns a CPD event that may be organisation-wide, attended by the new recruit alongside the partner, into a personal event that can be transferred to the workplace. The reflection allows you to draw out the knowledge relevant to your client base and your career. It can help solidify your learning into tangible actions and facilitate forward planning for future CPD where an activity has sparked an interest or highlighted an area for growth. Your reflective statements need not be long but should be specific and relevant to you to get the most benefit.

MAINTAINING HIGH STANDARDS

The CII audits members each year to ensure compliance with the minimum requirements. If you are selected for audit, you will receive an email and request to provide your CPD record. Unfortunately, members who fail to appropriately engage with the audit or who are unable to demonstrate that they have met minimum CPD requirements will be referred to the CII’s legal team and may be subject to disciplinary processes. This allows CII members to stand with conﬁdence behind their membership, knowing that they are part of a collective committed to ongoing learning.

FURTHER RESOURCES

The CII has a dedicated CPD page on its website at www.cii.co.uk/cpd which includes the CPD scheme rules, guidance on CPD and a practical guide to submitting your CPD record. If you have any further questions about CPD, you can email CPDReport@cii.co.uk and a member of the team will be happy to answer your queries.

The CII accredits CPD training programmes – for more information, visit: www.ciigroup.org/ cpd-accreditation ●

Charlotte Ferson is professional standards manager of the CII

This set of questions, courtesy of online CII training package Insurance Assess, will test your knowledge of relevant learning topics. Answers are at the bottom

QUESTION 1

In which year was the ﬁrst Lloyd’s motor policy issued?

Q&A

QUESTION 2

Which of these types of risks would be included in the commercial motor market?

Select all that apply.

Buses

Diggers

Light vans

Private hire cars

QUESTION 3

What is the name given to insurance protection purchased by a syndicate to shut down a year of account following an underwriting period?

Account run-oﬀ reinsurance

Outwards reinsurance

Syndicate reinsurance

Reinsurance to close

QUESTION 4

Which of these was NOT identiﬁed by the Allianz Risk Barometer 2023 as one of the top four ESG concerns globally?

Covid-19 and other pandemics

Cyber security resilience

Increasing regulatory and disclosure requirements

Lack of ESG expertise and resources

QUESTION 5

In the context of property risk surveys, what is the purpose of ﬂood mapping?

It can be used to indicate property which cannot be insured for ﬂood

It can be used to indicate the areas where ﬂood improvements are taking place

It can be used to indicate the availability of ﬂood clean up services

It can be used to indicate the severity of ﬂooding in the area

QUESTION 6

GDPR legislation relates to which of these areas?

Brexit

Data protection

Insurance law

Prompt settlement of claims by insurers

QUESTION 7

To whom does a broker have a primary duty?

Employees

Insurer

Loss adjusters

Policyholder

ANSWERS

QUESTION 8

Which of these is an underwriting consideration for classic car insurance?

The maximum annual mileage of…

The vehicle

The policyholder

All drivers

Outside the UK

QUESTION 9

In home buildings underwriting, which of these types of construction would mean that a property is of non-standard construction?

Timber-framed walls

Slate roof

Cotswold stone walls

Brick walls

QUESTION 10

What is normally the third-party liability property damage limit in respect of a commercial motor policy?

Between £20m - £50m

Between £1.2m and £5m

Between £10m and £15m

Unlimited

YOUR SCORE

LAURA ECCLES

SEEDS OF SUCCESS

Laura Eccles outlines how to tailor on-the-job training to maximise development potential

You may be familiar with the widely adopted ‘70/20/10’ model for learning, which emphasises that 70% of all development occurs through informal on-the-job experiences, whereas training and other formal programmes contribute less than 10%. This model has also been applied at all levels within organisations and the implication is that on-the-job learning is a critical factor in determining the optimising of your professional development.

This focus on investment in personal development contrasts with the ‘trait theory’ espoused by Thomas Carlyle among others in the 1800s, which proposed that traits were ﬁxed and that, for example, some people were born destined to be leaders.

There are many fantastic graduate and apprenticeship schemes available at insurance-related businesses offering the opportunity to combine study with realworld experience, including at Benefact Group, which I joined as a graduate. I certainly found cross-departmental exposure to be particularly valuable.

LEARNING ON THE JOB

So, what does on-the-job learning actually entail and is the employee or employer responsible for ensuring that this happens?

THE KEY MESSAGE IS THAT THE EMPLOYER AND EMPLOYEE ARE BOTH RESPONSIBLE FOR CONTRIBUTING TO THE SUCCESS OF ON-THE-JOB LEARNING

I found it interesting that online material refers to both “on-the-job training” and “on-the-job learning” interchangeably. I believe the former implies there is a structured plan or framework implemented within a live environment, while the latter is passive learning in a live environment.

This critical distinction and possible reason employers might prefer to cite “on-the-job learning” is that this can push responsibility for self-guided learning onto the employee. There is a risk that some employers could throw people in at the deep end under the guise of

development, perhaps when they are not suitably resourced to support the individual’s development or have not taken the time to build a considered development plan. Not only can this lead them to disengage, but it can affect their overall conﬁdence in their abilities and therefore their future performance.

In my personal experience, for on-the-job learning to work effectively, the employee and employer must work together to develop a plan considering the following factors:

● Identifying a learning style – One size does not ﬁt all. Depending on the individual or nature of the work, it might work best to shadow a member of the team over a period and then for that person to act as a support.

● Identifying appropriate learning experiences

– The employer must develop a mechanism for identifying learning experiences that are suitably stretching, that are offered at a suitable stage in the individual’s development and critically, they must provide exposure to develop valuable skills and behaviours.

● Establishing support – In some scenarios it might be appropriate to test an employee’s ability to complete a project independently, but otherwise provision of appropriate support, ongoing feedback and coaching will optimise the development value.

● Clearly articulated development needs – It is essential that both parties have identiﬁed the development needs and have deﬁned a plan setting out how those needs will be addressed.

The key message is that the employer and employee are both responsible for contributing to the success of on-the-job learning and there is a balance to avoid development being left to chance. I believe this is best articulated in the following analogy by Morgan McCall (1998): “Even the hardiest of seeds stands a better chance if it lands in fertile soil, has suﬃcient water and enjoys favourable conditions.” ●

Laura Eccles is claims risk and performance manager at Ecclesiastical and a Chartered insurer

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