1. UNSICAR The practical role for meeting professional knowledge requirements in insurance distribution - October 2015 -

2. INTRODUCTION GROW SMARTER is what I tell my colleagues every day and it has become a mantra among us Professional knowledge is critical for any business in financial services and this is no secret for anyone. GROW SMARTER in a practical way is what we propose for the future of professional development in insurance

3. INTRODUCTION I am glad to stand here, in front of you, first of all as the representative of the insurance brokers and consultants association in Romania – UNSICAR. We have almost 100 members and represent appx 80% of the insurance distribution market in Romania. We also have members the leading players in claims handling and professional development in insurance. It may be worth saying that managing the largest employer as a broker is a great source of challenges and know how when it comes to professional development of people.

4. UNSICAR UNSICAR was founded in September 2000 by a group of 12 companies in insurance brokerage and consulting, as a non profit, non governmental and apolitical organization Our aim is to support our members in increasing public recognition of the role of insurance intermediaries and consultants; Since most of our members are brokers we have developed from the very beginning an ethical code that is focused on customers’ benefits and interests. Therefore we shall support all initiatives that bring relevant value to our customers as this will keep them satisfied and … insurance customers in the long run !

5. PROJECTS UNSICAR specialists have been actively involved within the Insurance and Pensions Institute for 10 years together with UNSAR professionals to deliver the first courses for professionals in the insurance industry. We have directly contributed to IMA`s European HR development project, that delivered learning content to more than 8500 participants. 2000 2016 Professional development has always been a priority of UNSICAR. Just to name a few of the projects and activities we have been involved in since the association has been established. We have conducted educational projects in high schools and universities, teaching thousands of students on practical aspects of insurance

6. UNSICAR activates also as publisher, aiming to cover, at least in part, the current gap existing in the market`s specialty literature. PROJECTS Conference organizer, covering both new developments in the insurance industry and also regulatory changes

7. IDD’s NEW PHILOSOPHY THE INSURANCE DISTRIBUTION DIRECTIVE is shattering the stereotypes of insurance professional requirements we have seen applied in the past, focusing on the legal framework of the market. A new philosophy emerges, where practical knowledge requirements always come first. The ultimate beneficiary of such an approach is the customer. This is a sound basis for future developments

8. EUROPEN APPROACH carried out by national competent authorities only in tandem with undertakings and professional associations through delegation to professional associations in some MS intermediary& undertaking itself, according to the category of intermediary The responsibility for assessing knowledge and ability at national level varies between:

9. o A consistent involvement of the supervisor in professional qualifications o Extensive knowledge of the legal and institutional framework in insurance o Improvements required especially for technical abilities – terms and conditions of the policies, claims, risk and needs assesments etc o No official recognition of practical experience when it comes to continuous training requirements TODAY What we have today in Romania

10. We believe that according to the new IDD philosophy the professional associations should aim for self regulation in terms of professional qualifications or, at least, have a consistent involvement in setting curriculas and exams. Professional bodies of insurance undertakings are the meeting point of day-to-day know-how through their members and reliability when it comes to offering content or granting certifications VISION What’s next ?

11. o Minimum necessary knowledge of terms and conditions of policies offered o Claims and complaints handling are also specifically required, minimum financial savvyness, customer needs assesment and business ethics provisions o Specialization between life, general and investment related products – the spirit of IDD is to have separate qualifications for each of the three TOMORROW Who can serve best what IDD is requiring ?

12. How do we, UNSICAR, see this applied ? SEVERAL QUALIFICATION DEGREES Basic qualifications would apply for mandatory and very simple products, in order to provide good coverage of the market; Middle qualification would apply for certain types of complex risks and / or insured amounts Senior qualification would require a minimum of e.g. three years of practical insurance distribution experience and a license to distribute all types of contracts and / or insured amounts

13. BENEFITS It would give a clear indication to customers regarding the certified level of expertise they get It would allow fresh new talent to enter the market easier and faster It would provide undertakings with a flexible and realistic mechanism to comply with; lower operational costs and better fit for customer needs It would naturally regulate the match between required expertise and the product to be sold

14. We wish to get actively involved in the curricula and exam procedures; financial support is required from the authorities in this respect A market oriented approach in all respects of professional qualifications will ensure real benefits to the customers INVOLVEMENT Practical knowledge is critical as per IDD. Professional associations are a great partner for supervisors in order to achieve this

15. A big THANK YOU to my colleagues who provided consistent support for this: Bogdan Andriescu, President of UNSICAR Florian Gaba, CEO of Profiduciaria, market leader in insurance professional development professional qualifications and also a member of UNSICA R THANK YOU for your attention !