You can join an insurance brokerage firm following the completion of your GCSE O Levels. The majority of employers require two to four GCSEs (A-C)/S grades (1-3) including Math and English, although some firms prefer candidates who have completed their A levels/H grades.
Starting Out
You will have an added advantage if your A level subjects were related to finance, such as management, economics, business or accounts. Even if you were a science or arts student at A level, you may still be eligible for this job as long as you took the Math A level/H grades exam but you may need to take an apprenticeship. If you are 16-24 years old, you can get apprenticeship funding. For more information, visit www.apprenticeships.org.uk. You will start off as a trainee insurance technician. In order to rise to the level of a professional broker you will need to gain some experience and pass insurance industry exams. For example, if you are acting as a broker fund advisor, you need to take one or more of the following exams :
- G70 paper of Advanced Financial Planning Certificate – The Chartered Insurance Institute conducts this exam (The industry key is T C 2.1.4 R (1)(m) )
- Securities Institute Level 3 Certificate in Investments (Investment Management) – The Securities & Investment Institute (Formerly the Securities Institute) conducts this exam (The industry key is T C 2.1.4 R (1)(m) )
- Investment Management Certificate – The United Kingdom Society of Investment Professionals/Institute of Investment Management and Research conducts this exam (the industry key is T C 2.1.4 R (1)(m) )
- UK Regulation and Markets version of Investment Management Certificate – The United Kingdom Society of Investment Professionals/Institute of Investment Management and Research conducts this exam (the industry code is T C 2.1.4 R (1)(m))
For a complete list of the examinations offered, visit the Financial Services Authority (FSA) website:
http://www.fssc.org.uk/cgi-bin/go.pl/exams/list_exams.html?cat_uid=110&BF_adviser
Exams and Specialties
The FSA is the body that regulates insurance brokers in the UK; it also sets the training standards for the industry. Here are some of the exam categories for insurance brokers in the UK which meet FSA’s competency and training standards :
- Broker fund adviser
- Pension transfer specialist
- Regulated lifetime mortgage contract expert
- Overseer of the sales to customers (on a day-to-day basis) of regulated lifetime mortgages which do not involve personal recommendations.
- Manages investments related to venture capital investments only.
- Advises and deals with or for clients in, investments which are securities (other than stakeholder pension schemes or broker funds) only.
- Advising on, and dealing with or for clients in, investments which are derivatives only.
- Advises on syndicate participation at Lloyd’s.
To see a complete list of categories and the necessary examinations for each category, visit the FSA website: http://www.fssc.org.uk/cgi-bin/go.pl/exams/index.html. Brokers who deal with non-investment insurance contracts, such as home or motor insurance do not need to take an FSA approved examination. However, employers typically expect their brokers to achieve a professional qualification in insurance. If you plan on dealing in life insurance and long term investment insurance (i.e. pensions) you will need to achieve Competent Advisor Status (CAS) by taking FSA-approved exams in financial advice, insurance or a combination of the two.
The British Insurance Brokers’ Association offers a range of short courses dealing with the technical aspects of insurance at training centers throughout the UK. If you plan on working in the London insurance market or working for Lloyd’s, you will have to pass the Lloyd’s and London Market Introductory Test (LLMIT). The LLMIT is conducted by the CII (Chartered Insurance Institute; visit: http://www.cii.co.uk/cii.aspx. For Financial Planning, CII offers the following qualifications :
- Diploma in Financial Planning – this diploma replaced the Advanced Financial Planning Certificate (AFPC) level one.
- Certificate in Financial Planning – this certificate replaced the Financial Planning Certificate (FPC).
In order to be employed in the financial planning sector, you should get the Certificate in Financial Planning. If you want to apply for a high post in the same sector, you must acquire the Diploma in Financial Planning. Qualifications for financial planning are also offered by the IFS (Institute for Fiscal Studies). This institute offers the Certificate for Financial Advisers (CeFA) but in order to meet FSA standards, you will have to take an extra qualification or module in regulated general insurance in addition. For more details, visit: http://www.ifs.org.uk/. Qualifications available in general insurance include :
- Chartered Institute of Bankers in Scotland (CIOBS) General Insurance Certificate.
- Chartered Insurance Institute (CII) Certificate and Diploma in Insurance.
- Institute of Financial Services (IFS) Certificate of Regulated General Insurance (CeRGI).
After passing one of these exams, you can take the CII Advanced Diploma in Insurance, which leads to Associate Membership of the CII (ACII). Since experience is crucial in this field, you need to gain a few years experience in order to progress beyond the ACII level. During this period you should take some Continued Professional Development training courses which will help you achieve the Chartered Insurance Broker status.
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