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Reliability in the Financial Services Industry: Mauritius Sets New Standards for Insurance and Re-Insurance Brokers
In a bid to ensure the reliability of insurance and re-insurance brokers operating in Mauritius, the Financial Services Commission (FSC) has introduced new competency standards for licensed professionals.
Enhancing Reliability and Professionalism
As of January 1st, 2015, all new insurance and re-insurance brokers are required to demonstrate technical competencies, including:
- Advanced knowledge of insurance principles and practices
- Risk management
- Contractual agreements between insurers and reinsurers
Designated officers must also hold relevant experience in managerial positions and undergo continuing professional development (CPD) every year.
Fit and Proper Requirements
In addition, the FSC has introduced fit and proper requirements for all individuals seeking to become licensed insurance and re-insurance brokers or staff. These criteria include:
- Financial standing
- Education
- Qualifications
- Experience
- Good reputation, character, and financial integrity
Insurance Broker Competencies
According to the new standards, an insurance broker’s designated officer must have at least three years of full-time equivalent professional or academic qualification in a field related to insurance. They must also:
- Undergo CPD every year
- Demonstrate competence through relevant training or qualifications from recognized institutions
- Maintain a register of staff and provide evidence that they meet the minimum technical competencies
Re-Insurance Broker Competencies
Similarly, re-insurance broker’s designated officers must have advanced knowledge of:
- Re-insurance principles and practices
- Risk management
- Contractual agreements between reinsurers and cedents They must also hold relevant experience in managerial positions and undergo CPD every year.
Grandfathered employees are exempt from demonstrating competence but still required to comply with CPD requirements.
Benefits for Consumers
The introduction of these new competency standards aims to enhance the reliability and professionalism of insurance and re-insurance brokers operating in Mauritius. This will ultimately benefit consumers by providing them with more confidence in the services offered by these professionals.
“By setting higher standards for insurance and re-insurance brokers, we are ensuring that consumers receive the best possible service from licensed professionals,” said a spokesperson for the FSC.
Conclusion
The new competency standards for insurance and re-insurance brokers in Mauritius demonstrate the country’s commitment to maintaining high levels of reliability and professionalism in the financial services industry. As the sector continues to evolve, it is essential that regulators maintain robust standards to protect consumers and promote market confidence.