The “tick-a-box” approach to insurance broker education is the most important issue facing the industry, says Gold Seal MD Sheila Baker.

She has joined criticism of the possibility of a university degree being mandated as the minimum qualification for insurance brokers, saying it “will not address the impending education issues in the broking industry”.

Gold Seal is an independent broker training organisation.

Ms Baker says broker training providers have become overly focused on ensuring compliance with Australian Securities and Investments Commission (ASIC) standards, at the expense of industry fundamentals.

“The problem is not whether the level of education is at diploma or degree level,” she told insuranceNEWS.com.au. “It is the way the prescribed competencies formulated by ASIC have been used as the only standard, rather than the minimum standard.

“The ASIC standards should be the base level of our education programs… to ensure content is current, relevant and best practice.

“Let’s start selling the diploma as an achievement in excellence, rather than the ASIC minimum-standard, ‘tick-the-box’ exercise it has become.”

insuranceNEWS.com.au reported last week that National Insurance Brokers Association (NIBA) CEO Dallas Booth is concerned a Treasury consultation paper on educational and professional standards in financial services – which canvasses the introduction of a bachelor’s degree as a minimum education requirement for “service providers” – could include brokers.

“NIBA firmly believes the current framework for the education and training of insurance brokers is relevant and appropriate,” he said.

Ms Baker agrees, saying that imposing a degree as the minimum standard will be “unpopular and too expensive”.

She says some brokers would instead choose to not provide personal advice to clients. “This would reduce professionalism in the industry, rather than promoting it, and would devalue the service brokers offer.”