15 hours is not enough? Professional development according to Insurance Distribution Act (IDD)

According to Art. 12 of the Act of December 15, 2017 on insurance distribution, & nbsp; Each of the obligated persons should provide vocational training in the dimension of min. 15 hours per year, and its size depends on the nature of the contracts they offer to customers, as well as the scope of activities and the type of distributor they perform. 

So is a minimum of 15 hours a sufficient level for each obligee? What practice will be appropriate and allow you to meet the guidelines of the Act? Have market solutions been adapted to the needs and allow each of the representatives of the insurance and financial market to be fulfilled?

 

Due to its nature, the role of an insurance intermediary is included in the group of social trust functions. Therefore, it is extremely important to take care of the professional image of industry representatives. Building confidence in the knowledge and skills they have. Responsibility for the reliability of the information provided and proper preparation for work with the client. Trainings appear on the way to its fulfillment. lectures, workshops or knowledge given in e-learning form. Importantly, drawing knowledge from experienced practitioners is the key to development.

 

Obliged for training, i.e. who?

The Insurance Distribution Act covered entities involved in the broadly understood distribution of insurance products. intermediaries, agents but and & nbsp; employees of insurance companies, including senior managers. Therefore, the obligation applies to people who are directly involved in sales, as well as those who have an indirect influence on it. For example, a sales director who participates in negotiations or an underwriter who contacts the client to assess the risk.

At the same time, the scope of training depends on the nature of the contracts they propose, the scope of activities performed and the type of distributor, becomes polemical. Analyzing the solutions and training opportunities available on the market in the field of professional development without success, we are looking for training adapted to the level and scope of knowledge to the function. Should the manager know every detail of the product? In his case, they are desirable & nbsp; Workshops to improve the risk management skills related to the offer. So let’s ask the question – is the market offer adapted to the needs and requirements? 

 

For whom is the minimum? 

Since the introduction of the regulations resulting from the Act on Insurance Distribution, there have been many questions about the implementation of the obligation to train on the market. & nbsp; In particular, doubts are raised: the hourly scope of training, the process of administrative service of certificates confirming its fulfillment or the method of its verification. 

The position of the KNF regarding the implementation of the obligation to improve professional skills of 12/02/2020 clarifies and clearly states that in a situation where the obligated person offers to clients The conclusion of contracts from various departments, groups and types of insurance will be insufficient 15 hours. In such a situation, it will be appropriate to undergo training in a higher dimension appropriate to the scope of the contracts offered. The question is how many hours will it be enough in one year? Or maybe it would be appropriate to plan many hours of training for years?
The second factor influencing the need to increase the number of training hours is Number of insurance or reinsurance establishmentswith which the person cooperates. Their nature, level of complexity of activities and product offer. 

Personally, I often go back to my first steps in my professional activity. These were the beginnings of the 90s – the rapid development of all possibilities. Starting in the insurance industry, I went through training hours (152 hours!). The vast majority of the acquired knowledge serves me to this day and is the basis of what I am currently doing. Therefore, there is only one conclusion – training is necessary in order to be able to provide services in a professional manner and conduct the customer service process. Expanding your knowledge and practice, constantly providing new skills – tailored to your needs – is today’s world. More and more demanding, more and more rushing forward. With this maxim, we build our professional reality at EOFWCA.pl 

 

Assumptions and reality.

The main goal of the Act is to improve the professional qualifications of people offering the client the conclusion of insurance contracts. The existing restrictions, specifying the subject matter or duration of the training, are to influence the training effect. to comply with the assumption of the market regulator. However, is the system ready to provide an adequate level of education? Or maybe the market is just starting to work it out?
At the moment, the vast majority of us are dealing with a one-sided message: presentation, stationary training, e-learning based on product knowledge with sales elements of the Society. There are few that give a better cognitive effect, developed thanks to the interaction with the participant. Not trainings, but workshops or exercises based on life examples help to understand the client’s thinking and combine cause-and-effect relationships. This builds the insurance imagination of the broadly understood distributor. we should learn the client, be able to talk to him, define his needs. 

 

To sum up, not the very fact of the training, but only properly selected topics, methodology and dimension will bring the intended results. The solution should be matched to the needs, after prior analysis. With such preparation, the fulfillment of the statutory obligation will be unquestionable. 

Knowing the needs of the market, taking advantage of the extensive experience in the industry, together with the team, we have prepared a unique tool – the eFWCA.pl educational platform that meets the requirements of legal regulations. It is also a response to the needs of insurance companies. Certified online professional development workshops in the form of interactive live and licensing exams are a service that the market has been waiting for.

 

Joanna Jastrzębska, member of the management board of eofwca.pl