The Aldermanbury Declaration
The financial and related professional services industry is increasingly recognising the need for change, aiming to enshrine the highest standards at the level of individuals and organisations. One prime example of the industry making positive steps can be seen in the establishment by the Insurance Profession Task Force of the Aldermanbury Declaration.
The Aldermanbury Declaration is a practical framework for embedding professionalism in general insurance. This initiative was developed by a Task Force representing the diverse general insurance market, including major global insurers and national, regional and local brokers, and facilitated and supported by the Chartered Insurance Institute (CII) as the professional body charged with delivering many of its provisions. The resulting Declaration offers a response to the challenges facing general insurance, and foresees that renewing the focus on professionalism will bring a number of benefits, both for those working within insurance and for society:
• Better outcomes for customers
• Improved standards of risk management
• A more confident, trust profession
• More talented people attracted to a career in insurance
• Increasingly rewarding careers for those within insurance
• Reinforcing the reputation of the London wholesale market
Given the diversity of the insurance sector, the Declaration sets out broad principles, and invites insurers to consider how they should be applied to their businesses:
Creating the insurance profession
Launched in March 2010, the Aldermanbury Declaration contains provisions underpinned by CII qualifications and covers standards, training and measurable professional capability. The schematic below shows the requirements for brokers seeking to comply with it, along with which qualifications should be held at different levels of seniority within the company. Around this are stipulations about standards, training and measurable professional capability:
Note: this schematic is for insurers. See the corresponding schematics for brokers and insurance service organisations.
Through these principles, the Aldermanbury Declaration has great potential to improve market growth, nurture staff, and address the long-term health of the broking sector: millions of consumers and businesses seeking to address their insurance needs stand to benefit from a trusted, professional broking industry, and brokers themselves will benefit from improved professional development, and being encouraged to fulfil their potential.
According to Post Magazine, 94% of insurance sector respondents have welcomed the Declaration, and, assisted by the CII, firms of all types and sizes have already confirmed their support for it, and their intention to meet its standards.
As of June 2011 (fifteen months after its launch), some 210 insurance firms had signed up to these principles. The signatory list includes most major insurers and brokers, as well as a large number of smaller organisations and trade associations, both in the UK and overseas.
If you wish to speak in more detail about what the Declaration might mean for your firm, or for more information, please contact the CII on 020 7417 4781. You can also find out more, including a list of signatories, by following this link.
