The Senior Management and Certification Regime (SMCR) will be extended to all insurance intermediaries and solo-regulated firms in less than two months – however, many firms have made little or no progress on key changes.
The SMCR was introduced in the wake of the 2008 financial crash to encourage a culture of greater responsibility among senior staff and make sure firms and staff clearly understand and demonstrate where responsibility lies. The legislation will be extended to brokers on December 09, a year after the rules came into effect for insurers.
However, new research from Ecclesiastical Insurance revealed that, while most brokers (58%) agreed that greater accountability would help to raise standards in their industry, just 56% of brokers were aware of the legislation.
Read more: The SMCR: are insurers prepared?
The study, which surveyed 250 brokers, also found brokers working for a national brokerage significantly less aware (27%) of the changes than provincial brokers (64%). What’s more, just 4% of brokers said they knew everything they needed to do ahead of implementation, compared to a third who said they had no knowledge at all.
“Our research shows that unfortunately a large number of brokers aren’t aware of the SMCR and what they need to do to get ready,” said Adrian Saunders, commercial director at Ecclesiastical Insurance.
“However, with six weeks to go until implementation there is still time for firms to identify roles, draw up responsibilities and start to provide training on new conduct rules.”
