Dear Sir/Madam
TRAINING AND COMPETENCY FOR LIFE INSURANCE ADVISERS:
PHASE 1 OF MODULAR TRAINING PROGRAMMES
MAS accepted the recommendations by the Committee on Efficient Distribution of Life Insurance (CEDLI) on training and competency requirements for life insurance advisers, and modular training programmes to replace the existing pre-contract examination, Certificate in Life Insurance. The Singapore College of Insurance (SCI) will administer the modular training programmes which take effect from 1 Jul 2001.
2 CEDLI's recommendation on having a syllabus covering Retirement Security will be subsumed under the Financial Needs Analysis module after feedback from the industry suggested that it would be necessary to equip insurance advisers with knowledge on retirement planning at the onset.
New life insurance advisers appointed from 1 Jul 2001
3 From 1 Jul 2001, all new life insurance advisers must pass the following modules before they are to be appointed as a representative to provide advice on or sell any life insurance products:
- Financial Needs Analysis (FNA);
- Life Insurance (CLI); and
- Investment-linked Life Insurance (ILP).
Life insurance advisers and supervisors appointed prior to 1 Jul 2001
4 Life insurance advisers who are contracted prior to 1 Jul 2001 are required to complete a non-examinable course on Financial Needs Analysis conducted by SCI or an in-house course covering SCI's syllabus by 31 Dec 2001 in lieu of a pass in the FNA module.
5 While the Authority does not require life insurance advisers who are contracted prior to 1 Jul 2001 to pass the ILP module, they are encouraged to continually upgrade their product knowledge. The principals of such advisers should ensure that they do not provide advice on or sell any investment-linked life insurance policies if they do not have the qualification.
6 In addition, supervisors who are promoted prior to 1 Jul 2001 must pass the ILP module by 31 Dec 2001 if they have not passed the Certificate in Life Insurance (Investment-linked Life Insurance Policies) previously.
Life insurance brokers who handle only group life insurance
7 Life insurance advisers and supervisors of life insurance broking firms, which handle only group life insurance, will be exempted from the requirement to pass the FNA and ILP modules.
8 Insurers are not allowed to accept any business from any persons who do not have the required insurance qualifications.
9 Details on the new FNA examination that will be offered from 1 July 2001 is available from SCI. The SCI is also working on new syllabi for CLI, ILP and the two new MTPs on Healthcare and Employee Benefits that will be introduced in Jan 2002. Please contact SCI for any enquiries of administrative nature on the above programmes/examinations.
Yours faithfully,
MRS HAUW SOO HOON
EXECUTIVE DIRECTOR
INSURANCE DEPARTMENT
FINANCIAL SUPERVISION GROUP
