This month Paul Robertson looks at the implications of new insurance regulations which become effective on the 1st October and how this will affect property managers training.
This month Paul Robertson looks at the implications of new insurance regulations which become effective on the 1st October and how this will affect property managers training.
Do you deal with insurance as part of your job? If so, read on. New legislation coming into force in October could mean upskilling and increasing your CPD hours to meet the new requirements.
The IDD is the European directive updating the Insurance Mediation Directive that sets a minimum standard for the sale of general insurance across Europe. This forms the basis for regulation in the UK on which the current Financial Conduct Authority (FCA) handbook is based.
The IDD was scheduled for implementation in February this year but in December the European Commission delayed its implication until 1 October 2018 . But what do these changes to insurance regulation mean to property managers?
The first change – and the most significant for property managers – is in respect of insurance knowledge and training. This is particularly relevant to anyone involved in the distribution of insurance. Under the IDD rules – and given the new definition – any regulated firm will need to ensure a minimum level of ability by staff members who deal with insurance. The IDD outlines this level of competence to include: knowledge of the terms and conditions of policies offered; applicable laws governing the distribution of insurance; claims and complaints handling; assessing customer needs; the insurance market; business ethics, standards and financial competence. In addition, all employees involved in distributing insurance need to demonstrate a minimum of 15 hours of CPD in insurance in each 12-month period.
To help achieve the objective of gaining the required CPD there is help at hand with my book – Robertson’s insurance principles for leasehold flats. Alongside the book comes an online assessment module enabling you to demonstrate your relevant insurance CPD.
Secondly, the IDD re-defines and clarifies who needs to be regulated, by changing from the term mediation (meaning to arrange, advise or bring about a contract to insurance) to the term distribution which has a broader meaning. This makes matters clear, leaving little doubt for unregulated managing agents in that they are acting illegally if involved in the distribution of insurance. Ultimately any insurance brokers currently supplying insurance products to unregulated firms will have to reconsider their position as the IDD makes them responsible for checking that any firm to which they distribute insurance is appropriately regulated.
Robertson’s insurance principles for leasehold flats. It is now in print and available to order www.1stsureflats.com/book-release where you can also preview the first chapter.
Paul Robertson is Managing Director of 1st Sure Flats and Midway Insurance.
Tel: 0345 370 2848.
