Chartered Broker status
Tony
Norcott
FOUNDER AND CHAIRMAN THE CIRCLE GROUP
“ Knowledgeable clients
The Chartered broker experience
The Circle Group, based in Coventry, achieved the CII’s Chartered Broker Status in December 2010. Tony Norcott explains the reasoning behind this achievement and why he believes this qualification is so important for the industry
T
here’s huge variance in the companies operating in the broker community. From the straightforward end of the market - motorbikes, pets, private cars and other personal lines products - through to highly complex commercial risks. The degree of knowledge required, and the ethos of the clients call for different approaches. If your aim is to be a
professional adviser on complex risks, then there’s no doubt about it - you need Chartered Status. Brokers advising on simpler risks, for less demanding buyers, might not see the need so clearly, but it’s vital for brokers in commercial business who stand for professional advice and qualified people. Chartered Broker Status adds that official stamp. The aspiration isn’t new. When I entered the profession at age 16, there was an obligation to take exams and become qualified to be recognised alongside accountants and solicitors. The opportunity to get Circle chartered was a no-brainer given our desire to gain professional recognition for ourselves and the industry. It was a subject very much on my mind. My daughter had gained her ACII within two years and a Masters degree in insurance within 18 months of that, thus setting an example to our whole group.
When we started the process,
we were desperately close to meeting the required standards. We’ve always encouraged our staff to become qualified and it just needed an increase in our proportion of CII members. Originally, we made CII membership a personal choice, though we volunteered to pay for it. Having acquired other companies in our evolution, there wasn’t always a culture of CII membership, but I’m glad to say that has now changed.
It was reassuring to learn we didn’t need to do much else. Our systems controls were up to standard, so we were able to press on with our application.
A positive effect How has being a chartered broker affected our business? It’s early days in our organised marketing of our chartered status, though we are talking to customers about it on a day-to- day basis. I sense there is a greater confidence in dealing with us, and a higher quality among those coming for job interviews. A lot of customers recognise that it’s quite a new thing, but there’s a positive effect.
Certainly for our type of
customer, being chartered is important. I believe that - as each month and year goes by - knowledgeable clients will increasingly seek out professionals to handle their
insurance requirements as distinct from the sales-driven approach. But then, given the choice, why would a client firm not want to deal with a chartered broker? If technical risk and insurance advice is what companies require, then the ‘chartered’ message tells customers that we know what we’re talking about! In my view, there’s an argument to say that handling professional insurance should only be carried out by chartered firms. When something goes wrong, companies need a different level of advice. That’s where the chartered broker’s knowledge comes into play. Often, it’s a level of knowledge that exceeds that of insurers as well as other brokers.
Has being chartered changed the way we work? Well, we’re very much better at storing CPD records. Skills and knowledge need refreshing on a regular basis which means sending people on courses to keep their knowledge and subsequent advice levels up to date.
And how has it been received by our younger staff members? It’s too early to say, but I imagine it will tackle the problem of people wanting to join the profession without a commitment to taking exams. We are certainly more selective in our recruitment now and we insist on people taking exams - there is no option. It
ensures we spend more time on our younger people in order to plan for succession.
Chartered status is what our profession needs to help it build a better reputation. That’s why I would encourage other firms to pursue it for the sake of themselves and the industry generally.
What if?
But there are elements of being chartered that could go further still. What if insurance companies become more particular in selecting the brokers they want to deal with? That could also be linked to solvency issues and companies that use parent companies to shield problems such as intangible asset values. Without such controls there remains the risk of brokers failing to pass on premium to the insurer. The FSA does appear quite weak in monitoring such risks. Ultimately, for clients, chartered status gives us that stamp of approval that
demonstrates our ethos and how we do business. Though I’m not ready to go on permanent gardening leave just yet, I would love to be able to look back on my career and think that I got most things right. Achieving Chartered Broker status for the company is one of the things I am sure will be remembered as a major factor in our development.
JULY/AUGUST 2011 insurancepeople 21
increasingly seek out professionals rather than the sales-driven approach
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