Gilchrist Standard is a ratings agency that allows insurance brokers to benchmark themselves against peers and an industry 'ideal'. It helps them better understand the suitability of their operation and to quickly identify and mitigate potential risks.
Making Conduct Risk Audits Easier
Over the last few years the number of insurers’ conduct risk audits that insurance brokers have been asked to undertake have risen sharply and complaints of timewasting, unnecessary intrusion and incompetence have been common.
If one considers the FCA directives and regulation (IDD in particular), it is clear that insurers and wholesalers do have to consider the conduct standards of insurance brokers in the distribution chain but with brokers reporting that they have to set aside time for ten or more audits each year (and on the rise) the loss of profitable working time to the profession and its clients is becoming quite ridiculous.
Over the last two years the team at Gilchrist Standard has been speaking with a range of insurers, experts and insurance brokers and have designed a universal conduct risk audit that covers every material question that insurers and wholesalers currently ask.
The first audit is completed with an Approved Person (face-to-face or by phone) by an experienced Gilchrist Standard auditor and subscribers to the service (stakeholders) can access a report via Gilchrist subject to the agreement of the broker themselves.
The audit report will include substantial information including a Gilchrist Rating, how the broker has performed over eighteen KPIs and a graphical and tabular comparison of how the broker has performed against the results of peer practitioners and against an industry ideal score.
The information in the report can help an insurance broker improve standards and also allow insurers and others in the distribution chain to pinpoint how they can assist the broker to achieve that end.