IDD – Keeping up with your CPD requirements

As we know, the Insurance Distribution Directive (IDD) came into force in October 2018. Whilst this is a piece of European Union legislation, it has been transposed into UK regulation and therefore still applies even though we have now fully left the EU.

One of the important requirements of the directive is that a minimum of 15 hours of Continuing Professional Development (CPD) each year is a regulatory requirement for all staff involved in insurance distribution, including those supervising or managing such activities.

Just as other professionals such as doctors, solicitors and accountants have requirements to demonstrate that they are maintaining competency in their roles, so do insurance brokers.

Intermediaries and insurance brokers play an important part in giving customers the relevant information they might need about the product that is being provided, as well as objectively giving that information when it is most useful to a customer to enable informed decision making, and ensuring they are working with the best interests of the customer in mind.

CPD also helps insurance professionals to keep their existing skills and knowledge up-to-date and develop their careers.

The Aviva Development Zone already has an IDD learning pathway as a CPD module which covers off key competency requirements, including:

  • Applicable law
  • Claims handling
  • Complaints
  • Assessing customer needs
  • The insurance market
  • Business ethics standards
  • Financial competency

We understand it’s a difficult time for you and your clients. However, as far as the regulator is concerned it’s “business as usual”. Despite the Covid-19 pandemic, the FCA expect that most individuals will still be able to continue completing CPD even if they are on furlough or working from home. E-learning platforms, such as the Development Zone can play an important part in this.

Therefore, it may be a good idea to break the IDD pathway down into more manageable chunks by allocating one of these modules each month within your firm rather than trying to tackle it all in one go!

Another of the key competencies required by the IDD is that all staff must have a minimum necessary knowledge of terms and conditions of policies offered by a firm, including ancillary risks covered by such policies.

One way in which RWA can help you achieve this particular requirement is to integrate your firm’s existing training content, such as introductory sessions on the products that you sell into the Development Zone as bespoke custom course content.

This can be specific to your firm and the products you offer to your customers, for example it can include copies of product terms and conditions, your firm’s introductory video, and modules that include learning material and assessments to demonstrate and assess competency.

This along with the existing course content on Development Zone, and the ability for your firm to keep appropriate training records, can help your firm and individuals meet their IDD regulatory requirements for CPD.

Completing IDD CPD requirements doesn’t have to be a chore. RWA can help you break this down into more manageable, meaningful segments helping to keep your staff engaged in what can be seen as quite dry material!

RWA is experienced in providing consultancy support to firms to help refine and improve efficiencies in the delivery of training and learning solutions, which are designed to, inform, and motivate insurance professionals and address key regulatory topics as set out in the Insurance Distribution Directive.

For further information on RWA and how it can support your business, and tailor your existing training material into the Development Zone platform to help you meet your firm’s regulatory requirements get in touch via our website or contact your regional business manager directly.

About the author

Kay joined RWA in 2020 and prior to starting her role as one of RWA’s Regional Business Managers, worked as a Compliance Manager/Certified Person for an SME private motor insurance broker. Previous to that Kay worked at a Top 5 Insurance company for 16 years in technical underwriting, training, and compliance. Overall, Kay has 23 years’ experience in the Insurance sector. In the last 7 years Kay has completed her Cert CII qualification and a Diploma in Governance Risk and Compliance, she is currently studying Insurance Law as part of the CII Diploma qualification.

 

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