It’s time to improve standards argues Kevin Paterson, sales and marketing director, Assurant Intermediary
The subject of professional competency has always been a hot topic, but it is moving up the agenda as the Retail Distribution Review approaches. The minimum qualification requirements this will impose upon the investment community will raise the bar in terms of professionalism in that sector, and opens the door for the FSA to create requirements for mortgage advisers along a similar vein. &’8232 &’8232
Although mortgage brokers aren’t necessarily affected by the implications of the RDR yet, it would be imprudent to ignore the wisdom of improving skills, knowledge and professionalism and the FSA steer is a clear implication of what is to come. These days, brokers need every tool available just to survive, let alone grow their business, and can’t afford to miss out on valuable income because they don’t have the skill to sell all types of products and services. This is particularly true when it comes to selling general insurance products.
If mortgage brokers think they can get away with just enough knowledge to sell GI rather than life products, they should think again. GI brokers also will be raising their standards. The Insurance Profession Task Force, which crosses the spectrum of the insurance industry, recently unveiled the Aldermanbury Declaration. This declaration outlines ambitious targets for clearly documented training, qualifications, and professional development, similar to those that exist in the medical and legal professions.
If you think about it, the drive to improve professionalism throughout the financial services community is logical, given the battering its reputation has suffered following the credit crunch and recession. While many members of the financial services community continue to blame the banks, the simple fact is that the entire sector must rebuild confidence and trust among consumers. And let’s not forget the threat firms face of significant penalties from the regulator (whoever the regulator ends up being) if they are unable to demonstrate competency in the job they are tasked with.
&’8232In these challenging times, it’s true that it can be difficult to find the budget for training, or the time to attend a course or seminar. Most businesses are operating at full stretch, so losing critical hours can have a major impact on achieving target goals.
So what options are available that don’t cost the earth or take too much time away from the day job?
When it comes to understanding the ins and outs of general insurance products, brokers can look no further than the providers they already use. In a recent survey we conducted amongst intermediaries, 82% said that product training from providers was important. Most offer a range of materials from in-depth product guides and workbooks to suggestions and tips on establishing clients’ personal needs requirements, as well as handling objections. These materials are often available to download free of charge, allowing firms to schedule training for their teams when convenient, and at no cost to the business. There are also online training tools available free of charge.
Let’s face it. Most of us put off for tomorrow what we don’t have to do today. Why not ask your provider to come into your office and conduct face-to-face training? This is a no-cost option and can be quite efficient as it involves a larger number of staff to be trained concurrently at a time that suits the business.
Increasing the confidence and professionalism of your staff is a win-win. It provides the necessary advantage to maximise potential and generate more income. It also helps generate trust and confidence amongst clients. Given the industry climate, it just makes sense to realise the benefits of enhancing these skills voluntarily today, rather than waiting until it is required tomorrow.
