FACULTY OF INSURANCE BROKING

It must be said that the Faculty could not have emerged at a more historic moment in the evolution of insurance broking. In the past year we've seen the introduction of statutory regulation of the industry - and we've been told by the regulator that further internal reforms are needed if we are to escape further constriction.

These developments have taken place in the context of a market that is increasingly competitive. Direct sales, already dominant in personal lines, now threatens the commercial lines arena. Technology is changing the way brokers interact with many of their customers. New sources of risk are emerging. A European perspective is being added to the regulatory mix. And the cost of professional indemnity insurance is posing a real and immediate threat to the viability of many broking operations.

Given these pressures, the Faculty has a valuable and urgent role to play. It serves as a guardian of professional standards and adds momentum to the drive to maintain and enhance competence. Faculty members have access to information, training events and support, ensuring they are up to date on market information and changes in the broking market practice.

A dedicated regional events programme is at the heart of this activity, guaranteeing that the Faculty delivers to brokers throughout the UK.

Professionalism is about more than technical ability, of course, which is why the Faculty places emphasis on conduct and ethics. A new job role and competency framework will soon be launched, providing valuable help to small to medium sized brokerages in particular.

The Faculty is relevant to every one of the 100,000 people employed in insurance broking, whatever class of business, whatever size of firm, whatever their level of seniority. It is hugely encouraging that members are being recruited at a rapid rate, with awareness of the Faculty's work growing all the time.

Trainee or principal, personal motor or satellite cover, the Faculty has something to offer everyone. Not least among this is the camaraderie and fraternity that can develop between individuals working in the same profession. A large part of the essence of the Faculty is the desire to create a forum which can foster the development of brokers and of insurance broking.

The Faculty is also dedicated to improving the way brokers and insurance broking are perceived beyond the confines of the industry. That means with the regulator, with legislators and Government, with other authorities and agencies, with the rest of the commercial world, with opinion-formers and commentators and with consumers. The Faculty will not be shy in telling the public at large of the benefits of high-quality insurance advice and of purchasing such advice from someone who is a member of the leading professional body.

It is important to the ethos and objectives of the Faculty that it is a nationally-representative organisation, providing services to brokers of all shapes, sizes and locations. Our series of regional Business Briefings focus on key issues of the day; recent examples include 'Treating Customers Fairly' and Avoiding Professional Indemnity claims. Feedback from these events has been extremely positive.

The Faculty has also joined forces with the British Insurance Brokers Association to deliver a series of business interruption masterclasses at a number of regional centres this summer. The focus is on offering practical advice and guidance using real-life post loss examples. Classes count towards three hours' structured CPD.

Naturally, the Faculty will have a major presence at the CIFs UK Insurance & Financial Services Conference, to be held in London in September. Topics of particular interest to the broking community include an assessment of the post-Spitzer environment, broker-specific technology, what the FSA means by "treating customers fairly", the development of professional status and the management of conflicts of interest.

Among the broking firms which will have speakers present are Willis, Aon, Marsh, JLT, Perkins Slade and Stanford & Wood. Further details and booking information can be found at www.conference.cii.co.uk.

There has never been a more challenging time to be an insurance broker. Clearly, there has never been a more important opportunity for the Faculty of Insurance Broking to help shape the destiny of the industry.