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10/4 W01/March 2017 Award in General Insurance

Compliance with the Code and This section of the Code includes the member’s dealings with the CII and
all relevant laws and regulations regulatory authorities, requiring an open, clear, courteous and cooperative
manner. Emphasising the ethical nature of the Code, members must abide by both
the spirit and letter of the law. Individuals must be properly authorised and
regulated and, as far as they are able, make sure that their organisations are
suitably regulated and compliant. Breaches must be reported to the CII.
There are some key practical questions in this section implying a need to be up to
date with regulatory and legislative developments and to be aware of specific
regulations regarding advertising, data protection and competition. There is a need
for knowledge of both the compliance regime within the firm and the means of
updating it where necessary.
Highest ethical standards Honesty, trustworthiness and reliability underpin this section of the Code. It deals
and integrity with avoiding taking unfair advantage of a client, a colleague or a third party. It
prohibits wrongly motivated inducements (whether given or received) or even
those that have the appearance of implying an improper obligation. Members
must also promote professional standards and encourage the use of ethical codes
within their firms.
This section also covers membership of the CII and the use of CII designations. It
includes a requirement to advise the CII of material changes in circumstances that
affect either of these. Operating professionally extends to being financially
responsible, including the need to remain solvent.
Acting in the best interests of The fair treatment of clients is a key theme of the Code. Members should
each client encourage their firms to place the fair treatment of clients at the centre of its
corporate culture. Emphasis is placed on understanding and meeting client needs
and providing comprehensive information so that an informed decision can be
made by the client. Promises about product performance and after sales service
must be true. Confidentiality and the need to avoid conflicts of interest are also
dealt with.
High standard of service Communication with clients must be accurate and straightforward. Transparency
(including fees and other costs) and suitability are the main elements of this
section, which also emphasises the need for a member to recognise their
personal limitations and to keep up to date, meeting any CPD requirements.
Treating people fairly The focus of this section is the avoidance of unfair discrimination on grounds of Reference copy for CII Face to Face Training
(non-discrimination) age, disability, gender reassignment, pregnancy and maternity, marriage and civil
partnership, race, religion or belief, sex or sexual orientation. It relates to the
equality and diversity laws in the member’s country. Rules require that each
person is treated as an individual and emphasise openness, fairness, respect and
opportunity.

Activity
Take a look at the CII Code of Ethics, in appendix 1, consider your everyday working life and measure your approach
to your work and actions against the principles (and the key questions posed) as far as they apply to your job role.

B ‘Fit and proper’ requirements

To safeguard the interests of consumers, it is crucial that insurers are soundly and prudently managed,
Is crucial that
insurers are soundly and it is essential that individuals in key positions do not pose a risk to the interests of the insurer and
and prudently their stakeholders.
managed
B1 Risks of unsuitability

Research into the experience of insurers has demonstrated that a significant cause of financial
difficulties resulting in bankruptcies or ‘near misses’ can be problems with incompetence or operating
outside areas of expertise, lack of integrity or conflicting objectives, or weakness in the face of
10 inappropriate group decisions.
Chapter functionaries’, and for the assessment of the compliance with these standards, or ‘fit and proper’
It is necessary therefore to set standards on fitness and propriety for ‘significant owners’ and ‘key
testing, by regulators.
A significant owner is defined as a person (legal or natural) that directly or indirectly, alone or with an
associate, exercises control over the insurer.