The FCA’s increasing scrutiny of the protection and insurance markets has sparked an increase in the number of candidates wanting to sit the CII’s delegated authority exam.
According to Dr Sandy Scott, outgoing chief executive at the CII, recent reviews by the City watchdog into delegated authority has created a ‘spike in interest’ from the market.
Dr Scott said: “In light of the FCA’s thematic review our delegated authority examination has never been more relevant with current levels of interest suggesting examination entries will more than double this year.
“The sector is under increasing scrutiny from the regulator, customers and the government and while much has been achieved over recent years in raising standards of professionalism there is still much to be done.”
On 2 June, the FCA issued its TR15/7: Delegated Authority: Outsourcing in the General Insurance Market, which looked at how insurance intermediaries and third-party administrators were participating in arrangements by which insurers had delegated authority in terms of underwriting or claims handling.
According to Dr Scott, this review into delegated authority found the sector “wanting in a number of areas”, with several commentators suggesting the regulator will take action if firms don’t do more to improve their oversight.
The FCA found that, in many cases, some intermediaries undertaking product design activities did not recognise the extent of their responsibilities as product providers.
It also found there was insufficient oversight of the performance of products and delivery of services.
