Who said Loss Adjusters aren’t regulated?
It is true that up to 1st December 2011, Loss Adjusters in Republic of Ireland were not subject to Central Bank regulation, at least in any direct sense, whereas we all know that Loss Assessors are regulated and must register. That was and still remains the position under the European Communities (Insurance Mediation) Regulations 2005. (ECIMR)
However, regulation does not solely stem from the ECIMR as far as the General Insurance industry is concerned and from 1st December the Central Bank Reform Act 2010 (Sections 20 and 22) Regulations 2011, took effect. These far ranging regulations give legal effect to the Fitness and Probity Standards which are to apply to what are described as Controlled and Pre –approved Controlled Functions undertaken by or on behalf of a Financial Service Provider. Loss adjusters in general practice are unlikely to have to concern themselves with Pre-approved Controlled Functions but Controlled Functions are an entirely different matter.
Four roles in particular would probably encompass many of the functions which most of us carry out on a day to day basis and these are;
• (c) assisting a customer in the making of a claim under a contract of insurance or reinsurance (CF-5); or
• (d) determining the outcome of a claim arising under a contract of insurance or reinsurance (CF-6); or
• (e) acting in the direct management or supervision of those persons who act for a regulated financial service provider in providing the services referred to in subparagraphs (a) to (d) (CF-7); or
• (f) adjudicating on any complaint communicated to a regulated financial service provider by a customer in relation to the provision of a financial service (CF-8).
Section 21 of the Central Bank Reform Act 2010 requires that a regulated financial service provider shall not permit a person to perform a Controlled Function unless they have reasonably satisfied themselves that the person performing the function complies with the relevant fitness and probity standard laid down by the Central Bank and the person has agreed to abide by such standard. In this way you become subject to regulation by your own volition.
The standards which relate to Fitness are in terms of qualifications, experience, competence and capacity. Compliance with MCC (Minimum Competency Code) is to be taken as evidence of competency. In the case of maintenance of a qualification which is dependent on the completion of CPD, the regulated financial service provider is obliged to require the person performing the Controlled Function to self certify that they are compliant. The required Probity standards relate to honesty, ethical judgement, independent-mindedness, integrity, financial soundness and absence of conflict of interest. Persons undertaking a Controlled Function must certify that they are compliant and confirm at least annually that they remain compliant.
The amended Minimum Competency Code, which applies from 1st December 2011, also has its current roots in the Central Bank Reform Act 2010 and continues to recognise Associate or Fellow of Chartered Institute of Loss Adjusters and Diploma in Loss Adjusting (Insurance Institute of Ireland) together with other non claims professional qualifications apart from CIP, as an Additional Qualification in respect of the requisite Minimum Competency Standard for Non Life Retail Financial Products. However, the requirement for CPD now extends not only to the particular CPD requirement for the recognised qualification but adds requirements that at least one hour of the CPD requirement has to relate to the particular function undertaken by the individual and that another hour has to relate to ethics. There is a very limited leeway to make up a CPD shortfall in one year only and no carryover provision.
The standards which Central Bank as regulator of the General Insurance Industry have decided to apply are seen by CILA as a positive step and the recognition of the high level CILA qualifications as a Recognised Qualification serves to reinforce the career benefits which a CILA qualification offers in Ireland. The agreement earlier this year between CILA and III relating to mutual recognition of qualifications ensures that persons completing the only other available and recognised claims based qualification, Diploma in Loss Adjusting, are well on the way to achieving the leading global general insurance claims handling award as either Associates or Fellows of Chartered Institute of Loss Adjusters.
The key message for every CILA member practicing in Republic of Ireland is” Make sure you have undertaken and recorded your CILA CPD points” if you want to be able to continue in practice.
