Institute of Financial Studies approach to sustain

Romanian Vocational training in insurance

Calin M. Rangu, PhD

Institute of Financial Studies Founding member : Financial Supervisory Authority Members : Insurance trade associations, Insurance

Legal Experts Association, Actuarial Association

Acting: in the field of insurance, private pensions and capital market, from training programs and master programs, to workshops and conferences

Mission: identify the needs, and financial mechanisms, to sustain FSA and European legal framework, to support the development of financial entities, companies, including other mandatory vocational training centers, and persons that are involved in the non-banking sector to be complied with legal requirments, and the competencies standards

Institute of Financial Studies Future strategy:

From information/knowledge to competencies Knowledge and vocational training broker Developing occupational standards specifics for this

domain Uniform and high quality examination of market’s

graduates High added-value vocational training to apply the

non-banking financial sector regulations, and soft skills developments

Studies and research papers on the financial services Financial education for the market/society

Romanian legislation FSA intends to ensure a leveled professional

development for the employees in insurance market by

Authorizing entities to offer qualification, professional development programs

Approves the curricula of the compulsory programs and the topics of the certification examination

Acknowledges / Certifies trainers for the compulsory programs

FSA is founding and coordinating the Institute of Financial Studies – responsible for the certification examinations

Romanian provisions concerning vocational training Starting with 1st of September 2011, a distributor of

insurance /reinsurance products must have a certificate of vocational training in order to be able to be employed on the insurance market

Minimum education requirments Certificate of continuous professional development

(CPD) – max 3 years , respectively 2 years for executive Interdiction to further distribute insurance products if

deadlines are not met. Assuring competition of vocational training units

New modifications to national framework IDD’s impact: insurance

distributors must have adequate knowledge and abilities

Minimum training hours per year, based on the products sold, type of distribution channel

Certification may be require as a condition to perform on the market

Insurance companies or brokerage companies may verify the knowledge and the abilities of the intermediaries and should offer tools in order to support the development of the employees accordingly

Not all employees must prove their knowledge and abilities – key persons in the distribution process or those employees directly involved in the distribution

New modifications to national framework (2)

New topics in the curricula: ethics, corporate governance, own-assesments, money laundring, motor claims settlement (executives)

Unitary examination

New modifications to national framework (3)

ISF’s activity on short term Paradigm change and reorganisation of the

Institute of Financial Studies Development of programs for the three

markets: insurance, private pensions and capital market

Online platform for examination Development of national and international

partnerships, including with international certification institutions, recognized for their importance in the market

Focus on… Training the trainers Adapting the certification forms Using new tools of teaching (online

training)

Conclusions

Benefit from stakeholders’ support Implementing International and Sectorial

Qualification Framework Quality CVT brings quality on the market Professionalism, ethics and competencies