Marian SIMINICA, ISF: We are working on the development of a new manual for distributors
To address the needs of a continuously changing market and to ensure that professional training keeps pace, especially with recent legislative changes, we are working on a new manual for distributors that will include both the latest legislative updates and the necessary topics for obtaining definitive certification, stated Marian SIMINICA, Executive Director of the Institute of Financial Studies (ISF), in an interview with XPRIMM Publications.
XPRIMM: How do you assess the professional training of individuals in the insurance industry in 2021?
Marian SIMINICA: In 2021, there was a notable intensification in the compliance process of entities registered in the insurance market regarding initial and continuous professional training. The procedural framework created by ASF Regulation No. 20/2018 laid the groundwork for the standardization of training processes for personnel or collaborators engaged in insurance distribution activities. 2021 was the year for updating this framework, with ASF Regulation No. 23/2021 published in August, which introduced several new elements aimed at improving the training process. This trend of compliance was also evident for staff involved in auto damage assessment and financial non-banking mediation. The conditions are set to maintain the current growth rate of professionalization within the insurance sector through enhanced quality and diversification of continuous training programs.
XPRIMM: How did the activity of the Institute of Financial Studies evolve in 2021?
M.S.: In 2021, ISF focused on the two main pillars defined by the approved strategy for the upcoming period: on one hand, certification and evaluation, and on the other hand, financial education and scientific research, while continuing to allocate resources for the development of professional training programs.
This year’s topics of interest centered on current legal and technical issues for personnel involved in insurance with a continuous professional training obligation—auto damage assessors, distributors, and conciliators. Throughout the year, we organized 49 training sessions, including a new edition of the School of Insurance held in September, which brought approximately 1,000 participants to ISF courses. Additionally, in June, we organized the first edition of the School of Capital, an event attended by around 30 active specialists, who benefited from two days of online training sessions aimed at meeting the requirements for continuous professional training. Topics covered included: "Investor Relations: From Theory to Practice," "Introduction to Behavioral Finance: Investors," and "Trading Financial Instruments." These training sessions addressed market-relevant issues and were led by industry professionals and representatives from the Financial Supervisory Authority.
ISF developed multiple financial education projects for students and pre-university teachers. Approximately 3,900 students from 19 universities in Romania participated in vocational training seminars conducted in partnership with representatives from the Financial Supervisory Authority, UNSAR, UNSICAR, PRBAR, and investment management companies. During these events, specialists from non-banking financial markets discussed the functioning of these markets, career opportunities, and the development of saving and investing skills.
A total of 470 hours of training were recorded in the continuous professional training program for pre-university teachers teaching Economic and Financial Education in eighth grade—an accredited program by the Ministry of Education offering graduates (220 to date) the chance to obtain a professional certificate. For this program, ISF developed a Guide and a Collection of Applications to be used in teaching specific technical concepts related to non-banking financial markets.
A national competition was organized for the development of plans to promote financial education among adolescents, with 75 students from 11 universities participating. ISF awarded scientific papers developed by students from three universities and published new issues of the Journal of Financial Studies and a new publication aimed at student research—ISF Working Papers.
XPRIMM: In 2021, two important regulations on distribution and professional training were modified. How do these changes impact the insurance market and the activity of ISF?
M.S.: The change will have a positive impact; we can say that the provisions of these two regulations contribute to the goal of increasing the level of professionalization in the market. New provisions have emerged, such as the concept of "definitive," which includes various aspects related to continuous training, the annual requirement of 15 hours, and compliance deadlines. Definitive certification will be available only to those with experience in distribution, but once obtained, the continuous training examination, which is held every three years, will no longer be necessary. Meanwhile, the 15 hours of annual continuous training remain mandatory for all individuals working in insurance distribution, with the stipulation that the programs taken must differ from year to year, specifically, they cannot be repeated sooner than every two years.
All these changes require ISF to adapt its activities. The ISF platform must respond to the new requirements. There are new developments; some functions need to be adapted or modified, in some cases even substantially, to meet these new demands.
At the same time, to address the needs of a continuously changing market and to ensure that professional training keeps pace with recent legislative changes, we are currently working, together with the professional associations UNSAR and UNSICAR, on developing a new manual for distributors that will cover both the latest legislative updates and the necessary topics for obtaining definitive certification, as required by Regulation No. 23/2021.
XPRIMM: What are your expectations for 2022? How do you see the evolution of the market and the professional training of people in the insurance industry?
M.S.: As mentioned earlier, the legislative updates, particularly the introduction of definitive certification and changes to the requirements for accumulating the 15 hours of annual continuous training, will necessitate a concentrated effort in developing the national examination platform, as well as developing study materials and assessment tools related to this new type of certification. Definitive certification represents a new step in the development of specialized training in distribution, taking into account the experience and portfolio offered, and it is a significant project for ISF in 2022. Additionally, ISF aims to introduce new training programs targeted at personnel required to undertake training in the insurance sector, featuring new topics for continuous professional training.
Both ISF and training providers must adapt their activities to these changes, but this adaptation must be made "on the go"; processes must be continuous, and activities must not have interruptions, which poses a challenge.
I can tell you that ISF will continue its financial education programs in 2022. Moreover, we have a series of new, ambitious programs that we intend to launch next year, both in financial education and scientific research. Events that have already become a tradition, such as Quo Vadis, ECFS, or the Annual ISF Conference, are already scheduled, along with some new events in the calendar, which we will announce at the appropriate time.
The interview was also published in the PRIMM Insurance & Pensions Magazine.