Chartered Insurance Institute on road to financial recovery

The Chartered Insurance Institute has declared a consolidated operating surplus of £3.3m for 2021, compared with a £4m operating deficit in 2020.

The professional body’s 2021 Financial Statement, published 13 May 2022 shows the institute is on the road to financial recovery thanks to the collective efforts of members, students, corporate customers, volunteers, trustees and staff resulting in increased revenue and reduced costs.

There was a £2.2m increase in revenue from qualifications and educational activities in 2021 as insurance and personal finance professionals moved to develop their knowledge and skills.

Local Institutes opted to voluntarily utilise their reserves last year, before taking additional grant payments, this further aided the financial recovery of the professional body.

The Financial Statement also shows that CII staff reduced operating costs by £5.17m last year.

A significant cost saving was generated by the move from two offices to one Hub in 20 Fenchurch Street, known as the ‘Walkie Talkie’, in early 2021.

This move was made possible by the professional body’s digital transformation over the last five years, which enabled CII staff to work anywhere, anytime, while still having a presence in the heart of the City of London.

Another financial milestone in 2021 was the decision to proceed with the buy-out of the defined benefit pension scheme. The first step of this process completed in 2021 was an initial buy-in of £6.6m.

By mid-2023, the CII hopes to be able to complete the pension buy-out, which will result in future operating surpluses no longer being needed to address financial liabilities accrued in the past.

As a result of a tax provision plus the £6.6m defined benefit pension cost the CII Group reported a total deficit of £4.4m for 2021.

Jonathan Clark, interim CEO of the Chartered Insurance Institute, said: “We are pleased to see income building while we carefully manage costs in what continues to be a challenging environment.

“125 years since the CII was formed by the coming together of Local Institutes, we are proud to continue to deliver learning and networking that enables today’s insurance and personal finance professionals to develop their skills, knowledge and expertise.”

Helen Phillips, Chair of the Chartered Insurance Institute, said: “This recovery in 2021 has been delivered thanks to the collective efforts of our community of members, students, corporate customers, volunteers, trustees and staff.”

“Revenue has been achieved thanks to the continued commitment of insurance and personal finance professionals to learning, and their support and engagement with membership events.”

“The progress achieved helps provide a sound base for the development of the CII’s next five-year strategy which will focus on continuing to rebuild post pandemic.”

In 2021, the CII launched the Shaping the future together consultation so all members could have their say on how the professional body can best meet their needs.

The feedback received via the consultation will inform the next five-year strategy for the professional body.

Following today’s publication of the Financial Statement, the CII’s Annual Report will be published and shared with the volunteers that lead Local Institutes, Personal Finance Regional Committees and membership societies at the Ambassadors in Action conference in Birmingham on 17 May.