Stay ahead in the RMI landscape with expert insights, practical tips, and innovative solutions designed to help you elevate your career and drive organizational success.
Diane Hanlon
Disasters that used to be considered once-in-a-lifetime events are now happening every few years. In 2024 alone, U.S. natural catastrophes caused more than $112 billion in insured losses ...
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What 4 Catastrophe Risk Trends are Shaping the Future of Risk Management and Insurance?
By Diane HanlonDisasters that used to be considered once-in-a-lifetime events are now happening every few years. In 2024 alone, U.S. natural catastrophes caused more than $112 billion in insured losses, according to the Insurance Information Institute. This escalating trend is challenging traditional catastrophe risk models and pushing insurers to rethink how they measure, model, and manage risk.
For learning and development (L&D) and talent management leaders, the growing frequency and severity of catastrophe risks also highlight an urgent need: helping those in risk management and insurance evolve their skills so they can recognize and address a wide range of threats. By understanding key catastrophe risk trends, you can position your organization to not only withstand the next global catastrophic risk but lead with confidence through it.
Let’s explore four key trends shaping how today’s leaders can adapt through data, technology, and education.
Across the globe, hurricanes, floods, wildfires, and other natural disasters are striking more often and with greater intensity. In the first half of 2025, global insured losses from natural catastrophes reached approximately $80 billion, nearly double the 10-year average from 2014-2024, according to a report from Swiss Re Institute. Total losses for the full year could reach $150 billion or more.
And it’s not only natural catastrophes. Human-caused catastrophes, like cyber incidents and geopolitical conflicts, are also growing more complex. They’re forcing organizations to expand their corporate risk management strategy by exploring lesser-known geopolitical, industrial, and mass violence risks. In fact, EY’s 2025 Global Insurance Outlook found that 98% of global insurance CEOs plan to alter investments due to geopolitical factors.
Simply put, each major catastrophe can affect underwriting margins, pressure reinsurance capacity, and increase the likelihood that insurance carriers will retreat from high-risk regions. Catastrophe risk assessment and management must be an ongoing priority.
Traditional catastrophe risk models can’t keep up with today’s evolving threats, so risk management and insurance professionals are using advanced technology to make smarter decisions:
To illustrate, the Predict & Prevent® podcast—which addresses some of the biggest risk challenges facing society today— recently released an episode that explores how Faura's technology identifies which homes are more likely to survive wildfires, hurricanes, floods, earthquakes, and hail. Using quick homeowner self-assessments, Faura helps insurers replace costly inspections. Emerging technologies like these are critical to staying ahead of catastrophe risk.
As global catastrophic risks grow, insurers are finding new ways to share financial exposure. Traditionally, insurers relied on reinsurance when losses were too high. However, insurers are more often turning to alternative capital sources, including catastrophe bonds and insurance-linked securities (ILS), which connect financial markets directly to disaster events.
Parametric insurance is also more widely available than ever. Instead of waiting for a traditional loss assessment, payouts are triggered automatically when certain conditions—like wind speed or rainfall—reach a set level. This speeds up recovery and stabilizes finances after a major event.
Ultimately, this means that catastrophe risk has become a financial system challenge, not just an actuarial one. Understanding how insurance and capital markets work together will be key for staying resilient in the years ahead.
Forward-thinking RMI leaders are focusing more on proactive risk mitigation. Many companies now reward policyholders who take steps to reduce their risks by reinforcing buildings, installing advanced fire protection systems, and more. They may even provide policyholders with preventative technology up front, like sensors to monitor electrical issues or mitigate water damage from burst pipes or sprinklers. Likewise, organizations are also embracing scenario-based planning, using simulations to test their readiness for different disaster situations.
This shift is also impacting organizational culture. A resilient organization today ensures that every employee is well equipped for disaster readiness. L&D leaders play a crucial role by helping staff build the knowledge and confidence to respond effectively when catastrophe risk becomes reality.
The bottom line is that in the wake of growing global catastrophic risk, education and upskilling aren’t optional; they’re essential to close resilience and talent gaps. The Institutes Designations’ new Associate in Catastrophe Risk and Resiliency™ (ACRR™) helps RMI professionals meet this challenge and gain in-demand skills to manage natural and human-caused catastrophe risk.
Plus, ACRR is backed by The Institutes’ more than 115 years of experience as a not-for-profit, committed to educating, elevating, and connecting those interested in risk management and insurance to create a more informed, resilient world.
Empower your team to turn catastrophe risk into readiness with ACRR, the first of its kind that addresses catastrophes specifically within the RMI context.
Diane Hanlon is Head of Sales and Market Development at The Institutes, where she leads sales strategy and client partnerships. She works with Learning and Development leaders to design workforce learning pathways and serves on the Board of the Society of Insurance Trainers and Educators.
How to Prepare for The Institutes’ Final Testing Window of the Year
By Skills Edge TeamFrom October 15 through December 15, the final testing window of the year is your last chance to complete an Institutes Designation course and end the year with a strong sense of achievement in risk management and insurance (RMI). But it also arrives during one of the busiest times of the year, when projects wrap up, holidays approach, and travel plans may fill your schedule.
So, whether it’s your first course or the last one you need to earn a credential, success during this season requires a focused yet flexible approach. The tips below will help you create a practical plan, maintain momentum through the holidays, and show up confident on exam day.
First, pick a date within the window of October 15 to December 15, then plan backward from there. Working in reverse helps you visualize how much time you have for each step, such as reviewing study materials, taking practice exams, and scheduling a lighter review in the final week leading up to your exam.
Mark any major work deadlines, family gatherings, and travel dates on your calendar first. Then, fill the open spaces with study sessions. This method keeps your schedule realistic and prevents conflicts that could derail your preparation. Aim to complete your main studying a week or two before exam day, giving yourself time for final review and some flexibility if you need to retake an exam within the same testing window.
Next, let the people around you know about your exam goals well in advance. A quick conversation with your manager or family members can help protect your study hours and reduce stress when schedules inevitably fill up. When colleagues and loved ones understand your commitment to advancing your career, they're more likely to support your efforts during this busy season. Plus, they can help motivate you along the way!
According to research published by The Psychonomic Society in 2023, distributing your review across multiple sessions improves long-term retention of material compared to cramming study into one block. Consistency matters more than intensity. Aim for three short study sessions (20 to 30 minutes) and one longer review (60 to 90 minutes) each week. This steady rhythm keeps information fresh and helps you avoid last-minute cramming.
In addition, try to fit in reviewing study materials and studying habits to the routines you already have. Set goals to answer questions in the mobile app during your commute, discuss key concepts with colleagues over lunch, or tackle practice quizzes before bed. Some courses also include interactive exam practice questions and an AI Assignment Assistant to help weave studying into your schedule. When study time feels like part of your day instead of an extra task, it’s much easier to maintain.
Most importantly, reserve time for when you intend to complete the simulated exam, which reflects the style and structure of the actual exam questions. It’s an excellent opportunity to check your understanding, identify weak spots, and review course materials as necessary to build confidence on test day. Keep in mind that you can only take it once, so aim to complete it when you feel confident and ready after all assignments and quizzes.
Create a travel-ready study kit that includes flashcards, a notebook, and noise-canceling headphones to help you focus. This portable setup allows you to review during short breaks or while traveling. Even a few minutes of focused review while waiting at the airport or between family events can reinforce your learning and keep concepts fresh.
However, remember that rest plays a crucial role in memory retention and focus. Try to:
If stress starts to build, try a short breathing or mindfulness exercise before studying. Even a one-minute breathing exercise can boost energy and concentration, according to a 2024 article in Psychology Today.
The Institutes Designations’ exams are designed to measure how well you can apply key principles to professional risk management and insurance situations—not just how much you can memorize. Expect questions that reflect real-world scenarios you might encounter in the risk management and insurance landscape.
Focusing on the educational objectives in your RMI course materials can help you understand how central themes connect to on-the-job situations. Again, if your course includes a simulated exam, use it to test not only your knowledge but also get a feel for the environment and your thought process under the exam conditions.
Tip: If a challenging question appears, mark it and return to it later. Maintaining forward momentum helps you stay calm, confident, and in control throughout your exam.
In the days leading up to your exam, focus exclusively on light review and confidence-building activities. Skim chapter summaries, run through your flashcards one more time, and revisit key practice questions you've marked. This is the time to reinforce what you already know, not overload your mind with fresh concepts.
All Institutes Designation exams use virtual proctoring technology to ensure fairness for all students and maintain the integrity, value, and credibility of your achievements. Review the virtual exam proctoring guidelines and FAQs before exam day. Also, be sure to:
Taking care of these technical details in advance allows you to focus fully on demonstrating your knowledge during the exam.
This final testing window represents your chance to close out the year with pride and enter the new year with stronger skills in risk management and insurance. With a structured plan, flexible study habits, and a calm mindset, you can successfully balance the season's demands while taking the next step toward your designation. Your dedication during this busy season will help set you up for success in the year ahead, supported by The Institutes’ 115-year legacy of trust, purpose-driven education, and commitment to helping RMI professionals serve those in need.
For more study support, explore:
Our Skills Edge Team brings together insurance researchers and subject matter experts dedicated to advancing knowledge in risk management and insurance. Backed by more than 115 years of experience as a not-for-profit, the team at The Institutes is committed to educating, elevating, and connecting people and ideas to create a more informed, resilient world.
Is There a Competitive Advantage Through Education? How The Norfolk & Dedham Group Drives Continuing Professional Development
By Skills Edge TeamProfessional development and education are not nice-to-have perks anymore; they are a competitive advantage for you, your employees, and your organization at large. In fact, 70% of employees say learning improves their sense of connection to their organization. Organizations that invest in education will be able to future-proof their workforce and attract, prepare, and retain the next generation of risk management and insurance leaders.
We had the opportunity to speak with Joel P. Murray, CPCU, Board Chair, President, and CEO of The Norfolk & Dedham Group (N&D) as well as Michael J. Tufts, CPCU, Senior Vice President, People & Administration of N&D®. They shared how their extensive professional development efforts have been a competitive differentiator for their organization, how N&D leverages The Institutes Designations to drive career development pathways, and why their clients ultimately benefit from these initiatives.
N&D has a unique learning and development culture that ensures employees have the knowledge and skills they need to be successful in their current and future roles.
“Professional development is a strategic differentiator for us as we demonstrate to our employees we care about their future,” Murray commented. “Our partnership with The Institutes signals to candidates that we're serious about their growth. Internally, designation holders have an advantage over those who do not pursue [designations] as a result of their elevated subject matter expertise.”
This advantage comes in the form of streamlined paths to career advancement, as further explained by Murray:
“Our career development pathways are deeply embedded in our culture. We've designed structured progression models for underwriting, claims, and project management roles that emphasize continuous education, including CPCU® and other designations.”
In practice, Michael Tufts broke down what a career pathway might look like for a Commercial Lines Underwriter starting at N&D.
“When it comes to our talent practices, we’ve recently developed career pathways for our Commercial Lines Underwriters, from Day 1 through Year 7. There are two pathways: with CPCU and without CPCU. If employees earn their CPCU, they'll be able to go from an Associate Commercial Lines Underwriter, to a Commercial Lines Underwriter, to a senior role in four years. Without earning CPCU, it will take about 7 years. CPCU is so valuable from a technical knowledge standpoint that employees need a lot more on-the-job training and skill development to fill the knowledge gap.”
N&D’s professional development support extends far beyond promotion criteria, however. They cover the costs of employees’ course materials and even offer incentives for earning Institutes Designations.
“We pay for all the materials and exams employees need for every Institutes Designation,” said Tufts. “Physical books, online materials, their first exam attempt, everything. When they earn any designation, we award them $1,000. If they earn their CPCU we give them $3,500 and pay for them to attend the conferment conference.”
Thanks to their extensive training programs, N&D has been able to embrace knowledge and skills-based recruiting, which allows them to hire from a wider pool of candidates who may not have worked in risk management and insurance before, but have the transferable skills needed to grow their knowledge in entry-level positions.
As Tufts put it, “We’ve had to shift from a competency-and-experience-based recruiting model to a skills-based model. For an entry level job, like Auto Claims Examiner, we’re recruiting for skills. For example, somebody who has been a server in a restaurant and can communicate effectively with people, handle stress, and has good customer service skills will likely do well in that role. Those hospitality skills really lend themselves to what we’re looking for. Ultimately, that means we’re bringing a lot of new people into the company who have no domain knowledge in insurance. We created the learning journey to help address this gap.”
Next, once these new hires start, N&D quickly sets them on their learning journey.
“During an employee’s first year, 11-12 subject matter experts from within the company present a wide range of topics that are relevant to a mutual insurance company,” explained Tufts. “Two-hour sessions, once a month, over the course of a year. Alongside that, each employee will also be working toward their Associate in Insurance (AINS®) designation.
“By the end of the year, every new employee has achieved at least a baseline of domain knowledge of our industry, has earned AINS, and is ready to enter a specialized learning track. Then if they want to work towards their Associate in Claims (AIC™), they move onto track A. If they want to earn CPCU, they move onto track B. And so forth. We always try to leverage existing expertise and credit earned from The Institutes Designations across the organization.”
The Institutes Designations’ CPCU® is central to N&D’s professional development programs because it’s regarded as the leadership standard for risk management and insurance.
Murray stated, “At N&D, we view the CPCU designation as a cornerstone of professional excellence. Employees who earn their CPCU demonstrate not only technical mastery of property and casualty insurance but also a commitment to ethical standards and continuous learning. This translates into stronger underwriting decisions, better risk assessment, and improved profitability. They become subject matter experts and trusted resources for their teams, which elevates the entire organization.”
Understanding that earning one’s CPCU is a huge accomplishment, backed by years of hard work and dedication, N&D makes sure to recognize and celebrate their CPCUs. In addition to awarding completers $3,500 and paying for them to attend the conferment conference, they also post their accomplishments on social media and in the office.
“We have an entire wall in our office dedicated to the diplomas of all CPCUs in our organization," Tufts shared. “It really is a wall of honor for our employees—26 CPCUs in a company of 160. And we don't just recognize them on the wall. We recognize them during our annual town hall meeting, create a LinkedIn post celebrating them, and post their accomplishment around the office. It's a big deal and we want to acknowledge that.”
According to Murray, robust employee training and learning experiences provide N&D’s clients with an overall better experience on just about every front.
“Our mission is to provide financial security and peace of mind to our policyholders,” said Murray. “That starts with having knowledgeable, empowered employees. Through CPCU and other learning programs, our staff gain the technical expertise and business acumen needed to deliver exceptional service. Clients benefit from faster, more accurate underwriting, responsive claims handling, and personalized service. Our agents appreciate working with professionals who understand the nuances of coverage and risk. Ultimately, our investment in people translates into trust, loyalty, and long-term relationships with our agency partners, which serve as the foundation of everything we do.”
The bottom line: If you’re looking to build or revamp learning and development programs for your organization, The Institutes Knowledge Group can help! Reach out to our team at Sales@TheInstitutes.org for advice and best practices on building a culture of continuing professional development and lifelong learning.
Our Skills Edge Team brings together insurance researchers and subject matter experts dedicated to advancing knowledge in risk management and insurance. Backed by more than 115 years of experience as a not-for-profit, the team at The Institutes is committed to educating, elevating, and connecting people and ideas to create a more informed, resilient world.
The Institutes Launch a New Catastrophe Risk Designation as Extreme Weather Losses Triple
By Skills Edge TeamThe frequency of extreme weather events causing billion-dollar losses has more than tripled in the United States over the past five years, jumping from an average of seven events annually to 23. This dramatic escalation in catastrophe risk has prompted The Institutes Knowledge Group to develop a comprehensive new professional designation specifically focused on both natural and human-caused catastrophe risks and resilience.
Risk & Insurance, which is affiliated with The Institutes, recently spoke with Adam Carmichael, CPCU, the President of The Institutes Knowledge Group, about a new Institutes Designation. You can read the original article on the Risk & Insurance website now. The Institutes Designations’ Associate in Catastrophe Risk and Resiliency™ (ACRR™) addresses the urgent need for specialized catastrophe risk management expertise.
“The primary motivation for creating this designation was to address the growing and evolving threat of catastrophe risk and help both people and companies become more resilient in the face of those risks,” said Carmichael. “Catastrophes can result in physical and financial losses and often impact entire communities.”
The new Associate in Catastrophe Risk and Resiliency™ (ACRR™) designation, now available, represents one of the few programs in the risk management and insurance space comprehensively addressing both natural and human-caused catastrophe risks. The program was developed in response to clear demand, with The Institutes Knowledge Group’s advisory board providing immediate and positive confirmation that professional development in this area was critically needed.
Risk management and insurance faces unprecedented challenges from catastrophe risks that continue to evolve in both frequency and severity. Natural disasters have become more intense, while human-caused catastrophes like cyber-attacks have expanded in scope, creating intricate interdependencies that cause ripple effects across industries and communities.
“When you combine all the various catastrophes, this represents one of the largest risks the risk management and insurance sectors face, affecting a broad range of professionals across the field,” Carmichael said. The designation was specifically created to provide risk professionals with the skills needed to implement holistic risk mitigation and prevention strategies.
The program’s focus also extends beyond simply responding to catastrophes after they occur. “This designation was created to provide risk professionals with the skills needed to implement holistic risk mitigation strategies, strengthen resilience, and apply insurance and reinsurance solutions while looking beyond financial protection to predict and prevent potential losses,” Carmichael explained.
In developing the ACRR designation, The Institutes Knowledge Group employed a rigorous methodology drawing from multiple sources to ensure thoroughness and practical applicability. The development process began with comprehensive research into catastrophe risk, examining the various areas within this complex field.
“We pull from a variety of sources because what we’re trying to build is a holistic framework for managing both natural and human-caused risks,” Carmichael said. This research was then combined with input from subject matter experts who work directly in the risk management and insurance sectors, ensuring the program addresses real-world challenges that professionals face daily.
The goal throughout the development process was to design courses that help professionals build practical, applicable skills for their jobs. “These skills enable them to solve problems, develop strategies for handling complex risks, and ultimately work to mitigate, predict, and prevent catastrophes,” Carmichael noted.
The ACRR designation consists of four required courses that can be completed in six to nine months, with each individual course typically taking four to six weeks. The program includes:
All courses are delivered in a completely digital format, featuring scenario-based learning experiences that reflect real-world situations. “Each course has a related exam where participants can demonstrate application of the concepts covered, and these exams are also digital and can be taken anywhere,” Carmichael said. There is also a free sample course for those who want to experience the program format before enrolling.
The designation applies to a wide range of risk and insurance professionals, with particular relevance for those in specific roles. “Specifically, anyone who wants to better understand catastrophe risk and how to build resiliency would benefit, including risk managers, brokers who want to ensure their clients are protected against catastrophe risk, and underwriters who deal with this risk in their daily work,” Carmichael explained.
Professionals in the reinsurance sector should especially consider this designation, as catastrophe risk plays a critical role in that area. Additionally, those working in Insurtech could benefit from a better understanding of the risks that technology may be able to help predict and prevent.
The program equips professionals to build frameworks for assessing and managing risk that remain relevant even as catastrophe risks evolve and change over time. Participants learn to employ effective catastrophe risk management techniques and improve cross-organizational communication by raising awareness, fostering preparedness, better translating complex data into understandable information, and building a culture of vigilance.
“Anyone who cares about their organization’s bottom line should be interested in this,” Carmichael said, emphasizing the broad applicability of the skills developed through the program.
Looking ahead, the importance of education in catastrophe risk management cannot be overstated. “Catastrophe risk can be devastating. The more we understand these risks and are able to plan and build strategies to predict, prevent, and mitigate them, the more significant the difference we can make,” Carmichael said.
While some catastrophic events are inevitable, there are proactive measures that can be implemented to improve outcomes. “Education in this space is crucial because while some of these events are inevitable, there are proactive measures we can take. When we implement these measures in advance, it creates better outcomes for everyone involved,” Carmichael noted.
With more than 115 years of experience as a not-for-profit committed to educating, elevating, and connecting those interested in risk management and insurance, The Institutes have positioned this new designation to help create a more informed and resilient world in the face of growing catastrophe risks.
To learn how your organization can turn catastrophe risk into readiness, explore The Institutes Designations’ NEW Associate in Catastrophe Risk and Resiliency™ (ACRR™) today.
Our Skills Edge Team brings together insurance researchers and subject matter experts dedicated to advancing knowledge in risk management and insurance. Backed by more than 115 years of experience as a not-for-profit, the team at The Institutes is committed to educating, elevating, and connecting people and ideas to create a more informed, resilient world.
Lead the Next Chapter: Risk Management and Insurance Masterclasses for Evolving Leaders
By Adam Carmichael, CPCUThe risk management and insurance (RMI) landscape is transforming at a rapid pace. Experienced professionals are retiring at a high rate, AI is revolutionizing almost every function from underwriting to claims, and teams are becoming more global. If you've earned an Institutes Designation, you've already built a solid foundation, but keeping your skills sharp requires continuous growth.
That’s why we created new risk management and insurance Masterclasses: concise, skills-focused courses designed to help you lead with greater impact. In just 3-5 hours per course, you'll gain actionable insights you can apply immediately, plus a digital badge to showcase your commitment to excellence.
Ready to discover how these targeted learning experiences can accelerate your professional development? Let's explore why these skills matter and which Masterclass might be your perfect next step.
The risk management and insurance field is evolving. Shifts in workforce demographics and digital innovation are reshaping expectations for leaders, demanding stronger communication, data fluency, and strategic agility. This is predicted to have a significant impact on middle management roles.
What does this mean for you? Technical expertise alone is no longer enough. Today's employers seek RMI leaders who can:
Key Takeaway: Today’s leaders must evolve their skill sets to help organizations navigate employee turnover, technological transformation, and workforce globalization.
Each Masterclass addresses a critical skill gap in today's RMI community, delivering practical tools you can implement immediately.
Ideal for those preparing for increased roles or seeking to expand their influence in the risk management and insurance landscape, this course helps you identify your leadership strengths and gaps while building your ability to make sound decisions under pressure. You'll learn what inspires colleagues to follow your lead and how to become a steady, calming presence in your organization.
Designed for those driving digital transformation, this Masterclass breaks down the intersection of data analytics and AI technology. You'll gain the vocabulary to collaborate effectively with data scientists, understand how AI enhances everything from underwriting to customer experience, and discover practical applications for your specific RMI role.
Essential for anyone working with diverse teams within the insurance sector, this course explores how personality and cultural differences influence workplace communication. You'll master techniques for adjusting your messaging strategies, building cultural intelligence (CQ), and fostering inclusive collaboration that drives results.
For leaders building high-performing teams, this Masterclass develops your ability to set clear expectations, apply empathy in challenging work situations, and guide others toward their own solutions. You'll learn active listening techniques, and skills that build trust and accelerate team growth.
Consider which skill will have the biggest positive impact on your work right now.
Each course stands alone, so you can start anywhere and complete them in any order. With just a few hours of focused learning, you'll gain skills that differentiate you in the risk management and insurance marketplace, earn recognition through digital badges and email certificates, and demonstrate your commitment to continuous improvement.
In conclusion, leadership in risk management and insurance isn't a destination. It's an ongoing journey of growth and adaptation. In a field experiencing ongoing changes, those who continuously sharpen their skills will thrive.
The Institutes' Masterclasses offer you a practical path forward, combining 115+ years of trusted expertise with modern, actionable learning designed for busy professionals. Whether you're looking to enhance your AI literacy, strengthen your cross-cultural communication, develop emerging talent, or step confidently into a leadership role, these courses deliver the focused development you need.
Explore our new Masterclasses today and take the next step in your professional RMI leadership journey. Your future self—and your organization—will thank you.
Adam Carmichael, CPCU, is President of The Institutes Knowledge Group. He leads the strategic development and delivery of courses and exams for risk management and insurance designation programs. He also oversees new course creation to ensure The Institutes’ education aligns with professional development needs. With more than 25 years in research and assessments, he brings deep expertise in professional development.
The Rising Cost of Catastrophe Risks: What Every RMI Professional Should Know
By Adam Carmichael, CPCUEvery September, National Preparedness Month serves as a reminder that readiness is essential in today’s risk landscape. For risk management and insurance (RMI) professionals, this year’s observance is especially timely. The physical and financial toll of catastrophes continues to rise due to events like hurricanes, wildfires, and geopolitical unrest.
In response to this rapidly growing and evolving threat, The Institutes Designations recently launched the new Associate in Catastrophe Risk and Resiliency™ (ACRR™). This program was developed to help professionals gain in-demand skills to identify exposures, implement holistic mitigation strategies, and strengthen the resiliency of organizations and communities.
Catastrophe risk refers to the potential for large-scale losses caused by natural events like hurricanes, floods, and wildfires or by human-caused disasters such as cyberattacks or political unrest. According to the Insurance Information Institute, an event is considered a catastrophe when insured losses exceed $25 million and affect many policyholders.
A catastrophe risk model is a tool insurers and risk managers use to estimate potential losses from catastrophic events. These models combine historical data, scientific research, and exposure information to help organizations plan for worst-case scenarios.
The cost of catastrophe risk is surging for several reasons:
According to the Insurance Information Institute, there are various key stats on catastrophic risks that make the urgency clear:
In summary, these numbers reflect more than insurance payouts. They represent lost homes, disrupted communities, and long-term business interruptions that strain organizations far beyond the initial disaster.
Insurance alone cannot absorb the impacts of today’s catastrophe risks. Coverage gaps and rising deductibles make it harder for organizations to rely solely on traditional transfer strategies.
At the same time, interdependencies are straining existing approaches to catastrophe risk management:
Ultimately, catastrophe risks are no longer isolated events; they create a complex web of challenges that can ripple across industries and communities.
Data and catastrophe risk models help RMI professionals, but they cannot completely eliminate the uncertainty these risks bring. Simply put: Preparedness now requires holistic, forward-looking strategies that extend beyond financial protection. Steps that strengthen catastrophe risk management include:
RMI professionals must adapt their skill sets as catastrophe risks continue to evolve. The Institutes Designations’ new Associate in Catastrophe Risk and Resiliency™ (ACRR™) provides a framework for managing both natural and human-caused catastrophe risks that will remain relevant even as threats change over time.
ACRR equips RMI professionals to:
Learn more about ACRR and how it can help you strengthen resiliency for organizations and communities. You can also try the free ACRR sample course to preview the content and determine if the program fits your professional goals.
Introducing the Assignment Assistant: Your AI-Powered Study Partner
By Adam Carmichael, CPCUStudying for a designation can be both rewarding and challenging. Many learners tell us they spend extra time searching for explanations, looking up examples, or re-reading tough concepts when studying their assignments.
That’s why we’re excited to introduce the Assignment Assistant—a new AI-powered tool built right into CPCU and AIC courses to help you study smarter, not harder.
The Assignment Assistant is an AI-driven study companion designed specifically for The Institutes’ designation courses. Unlike generic AI tools, it’s trained on our course materials, ensuring you get accurate, course-specific guidance aligned with your learning objectives.
If you select the course package that includes the Assignment Assistant, it’s available directly in your CPCU and AIC course dashboard and ready to use whenever you are.
The Assignment Assistant was designed to make your study journey more efficient. It’s not here to replace the effort you put into mastering your material—it’s here to make that effort more effective.
By removing barriers and saving you time, the tool helps you stay on track, boost your confidence, and get the most out of your learning experience.
If you already have this course package, accessing the Assignment Assistant is simple—just open it directly from your AIC or CPCU course dashboard. Give it a try on your next assignment and see how much time you can save.
Launch the Assignment Assistant Now
Are you currently a CPCU or AIC student, or looking to start either program? Learn more about this new, exciting tool and find out if it’s for you!
The Value of Investing in Professional Development: Q&A with Pennsylvania Lumbermens Mutual
By Skills Edge TeamOffering professional development is no longer a nice-to-have-perk, it’s a strategic competitive advantage that drives everything from bottom-line results to employee recruitment and retention. In fact, 94% of employees say they would stay at a company longer if it invested in their career development, according to LinkedIn’s Workplace Learning Report.
The Institutes had the opportunity to speak to board member and Pennsylvania Lumbermens Mutual Insurance Co. President and CEO John Smith, CPCU, ARM, ARe, AIS about his organization’s investment in professional development. In the Q&A that follows, Smith shares PLM’s viewpoint on the value of learning and development, the measurable outcomes they've seen, and why they’ve made education a cornerstone of their talent strategy.
John Smith: Our commitment to education and development is not based on a desire to hang up a lot of certificates; it stems from the belief that the company with the best people, at the end of the day, wins.
We believe the true value of an insurance program lies not in its price, but in the caliber of professionals who deliver exceptional expertise and service. Furthermore, we are committed to continuous learning, recognizing that without it, the competition will inevitably close the gap.
JS: Participating in our education program is mandatory for all employees (yes, even me). We’re proud to say that 100% of our team has engaged in continuing education, with some returning to formal learning for the first time in years.
Last year, our team of approximately 170 people took 196 Institutes designation exams. As a result, we earned 53 Institutes Designations, including several who earned CPCU®. Members of our senior leadership team are among those who completed the CPCU designation, including one member who started their CPCU program in 1986. I’ll never forget the emotion in his voice when he called, in tears, to share that he had passed the final part of the designation.
JS: We do weekly in-house training sessions, provide personal employee coaches, and we send people to external classes run by reinsurers, NAMIC, APCIA, and many of our industry partners.
Our leadership training is conducted by the Center for Creative Leadership. This allows our people to engage with professionals outside the insurance industry, helping to broaden their perspectives and strengthen their leadership capabilities. More recently, we’ve also begun working with the International Cooperative and Mutual Insurance Federation (ICMIF) to provide our leaders with valuable international experience.
In the right circumstances, we will pay for advanced degrees in their entirety and freely invest in a set budget for anyone pursuing an undergraduate or a graduate degree.
JS: We maintain exceptionally high policy and premium retention rates and have achieved an underwriting profit in eight of the past ten years, alongside an operating profit in all of the ten years. Our education program, now in its sixth year and managed by a dedicated full-time leader, has played a significant role in this success.
More importantly, we are attracting new talent to PLM in part due to the program. I can’t recall a single instance where a candidate withdrew from the interview process because of our mandatory education requirement.
Additionally, we recently launched a succession plan built entirely around internal candidates, further demonstrating our long-term investment in developing and retaining top talent.
What Are the Best Study Tips for The Institutes Designations’ Exams?
By Angela Pilotti, CPCU, AReAre you planning to take an Institutes Designations’ exam soon? It’s natural to be a little nervous, but with the right strategies, you can feel confident and ready to succeed. Below, we’ve outlined 10 practical study tips to help you stay motivated, retain information, and apply what you’ve learned on exam day.
Important: These exams aren’t about memorization. They're designed to assess how well you apply knowledge in real-world scenarios.
Use visual reminders—like Post-it notes or screensavers—to keep your goals front and center. Whether you're aiming for career advancement, personal growth, or improved job performance, connecting your study efforts to your larger purpose can help keep you on track. Share your goals with friends or family so they can support you.
You’re part of a field that helps people overcome life’s unexpected challenges. That purpose alone is a powerful motivator.
Research shows cramming at the last minute doesn’t support long-term retention—and it works against how Institutes Designations’ exams are structured. These exams assess applied knowledge.
Create a study schedule with clear milestones and SMART goals (specific, measurable, achievable, relevant, and time-bound). Use the printable study outline in each course, which includes key points, review questions, and space for notes. You can also track your progress and quiz results within your course to see where you stand.
Find a quiet space, put your phone on do-not-disturb, and let family or friends know to respect your study time without distractions. Grab anything you might need—not just a pen and notebook—but also things like a full water bottle and a nutritious snack so you don’t have to get up and then try to settle back into study mode.
Beth Illian, a working parent who earned her CPCU®, AINS®, and AIS™ shared her routine to accomplish this. She would always study in the evening, after her kids were in bed, with a cup of tea and a stack of pretzels at the dining room table. This was a “signal to her brain” that this was the time to switch off from the day and study.
Mike Bronzino, Managing Director of Exam Integrity for The Institutes, earned his CPCU®, ARM™, AIM™, ARe™, and AMIM® designations prior to joining The Institutes. That's more than 25 Institutes Designations’ exams completed, and he highly recommends you focus your study efforts on the educational objectives. These are the central themes of the course material. Exam questions directly relate to the real-world application of these course objectives. If you focus only on facts or terminology, you’ll miss the bigger picture.
All designations courses include proven, comprehensive study materials to help you take the exam with confidence. In addition to the printable study outline with key points and review questions, you also have access to the following:
NEW: CPCU, AIC, AINS, ARM, AU, ARe, and AIDA course options now include hundreds of interactive exam practice questions that pull directly from the course content. With CPCU and AIC courses, you can also choose a package with an AI Assignment Assistant that adapts to your preferred learning style.
Your exam will include multiple different question formats. Understanding these formats will help you feel confident and prepared.
In addition to multiple choice, your exam may include fill-in-the-blank, drag-and-drop, and numeric-entry questions. These are designed to help you better understand, retain, and apply course content while preparing you for real-world scenarios.
The Institutes' Chat on Facebook is The Institutes Knowledge Group’s office page and the place to connect with other students. Find a study partner, share tips, and celebrate milestones together. It’s easier to stay accountable and motivated when you're part of a community.
You’ll also see questions from other learners that can spark new ways of thinking and deepen your understanding, especially when you're tackling tough concepts.
One of the best ways to reinforce your learning is to explain key concepts to someone else, as if you're teaching them. This practice, also known as the protégé effect or the Feynman Technique, helps you identify gaps in your understanding and deepens retention by forcing you to put the ideas into your own words.
Even if you don’t have a study partner, you can do this by speaking out loud to yourself or writing out an explanation in a notebook. The goal isn’t perfection; it’s about practicing how you apply the concepts, which is exactly what the exam will ask you to do.
As you get closer to exam day, take time to focus on the areas that challenged you the most. Use your quiz results and course progress indicators to identify areas for improvement. But don't just reread the material. Focus on applying the concepts to real-life scenarios—just like you'll do on the exam.
All exams now include virtual proctoring to maintain the value and integrity of your hard-earned Institutes Designation. You still have the same flexibility of testing anywhere, anytime, now with added security. Just ensure you're familiar with the requirements and have a reliable internet connection to complete your exam without interruption.
We recommend you test your equipment at least 48 hours before your exam.
With the right tools, a clear plan, and consistent prep, you’re not just studying for an exam—you’re building your future in risk management and insurance. These exams are designed to evaluate how well you apply knowledge, not memorize facts. Every question is an opportunity to demonstrate your understanding and your growth.
Need more support? Visit our Exam Prep Center for more tips and answers to common questions.
* Based on analysis of CPCU®, AINS®, and ARM™ student exam results versus exam-preparation methodologies, 2020-2021.
Guiding Insurance Toward a Smarter, Safer Future: Interview with Peter Miller, The Institutes President & CEO
By Skills Edge TeamNew technologies are transforming the risk management and insurance landscape at a rapid pace, and this ever-changing environment is pushing organizations to innovate alongside it. Peter L. Miller, CPCU, President and CEO of The Institutes recently sat down with John Weber from AM Best TV to discuss how AI, blockchain, and predictive technologies are reshaping risk management, enabling proactive loss prevention, and reinforcing the sector's ethical and educational foundation.
Check out a few highlights from this conversation below, and watch the full interview on AM Best’s website.
Peter Miller: It's changing a lot. We've talked for a long time about a concept we call the golden triangle, and that is really coming to fruition. The idea is that there's now more data, and you can have better access to it through cloud services. The source of data is increasingly Internet of Things (IoT) devices—sensors or other devices that feed a stream of data into cloud services—and then advanced analytics and AI that can analyze that data, make sense of it, and do things proactively.
There's a lot in the news about generative AI and different types of AI. That lives on data, and the ability to have more data and more computing power in these cloud services. The insurance sector is really starting to take advantage of that. What we're after is to be able to predict and prevent losses—because the best loss is the one that never occurs—so that we can provide better service to customers.
PM: I think it is in this predict and prevent capability—the ability to identify a risk and determine what we can do to avoid loss associated with that risk. There are all kinds of technology and startups that can gain insight and then take preventative action.
I've talked to several different startups. There's one called BurnBot that analyzes forests and other places where there's wildfire risk, and they'll do preventative targeted burns. It's a really cool idea because there are predictable patterns in how some of these fires spread. Another company called Faura is able to gain really detailed information through satellite images and provide a score for a particular property right down to the property level, along with mitigation recommendations.
We're now able to take much more detailed satellite images, combine them with data sources, and then get very specific on the risk for a particular property. There are also organizations that work with fire departments to identify risks in their area and help homeowners prevent or mitigate those risks.
It's really interesting because people are starting to focus on risk mitigation, which is extremely important as inflation causes replacement costs to go up, creating a protection gap. The future involves recognizing there's not enough premium to cover all potential losses, so we need to figure out how to mitigate losses before they happen. This creates a broader spectrum activity: risk management at the front end in the form of predict and prevent, and then indemnity to pay for losses when they occur. The combination of these two represents a real opportunity for insurance organizations.
PM: The Institutes RiskStream Collaborative is an organization we started some time ago to work on blockchain technology. As part of that cloud leg in the golden triangle, you have to be able to store data, use it securely, and then do something with it. RiskStream allows for a very secure way for companies to exchange data and integrate it into blockchain technologies called smart contracts.
Smart contracts can get a stream of data, interpret it, and take an action automatically. The smart contract sitting on a blockchain allows for more efficient exchange of data, but also enables parametric insurance—where you cover a risk based on some parameter. When that parameter, such as temperature or wind speed, gets above a certain level, claims are automatically paid. That reduces claim processing time and gets money into the hands of the policyholder faster.
Blockchain is an enabler of all those things. It's very secure. There are advantages going forward, both in terms of its ability to securely share data and then to execute things like parametric insurance.
PM: Yes, and in the economy as a whole. You're seeing stablecoin that's built on a blockchain, which is a medium of exchange that you'll start to see for commerce internationally. This technology has advanced to a point where it can handle transactions at a higher rate. The quality and robustness of that technology has improved considerably, and it's much more secure.
PM: I think that's partially because the tools are advancing at a really rapid rate and their ease of use. I see three ways that companies are using it. The first is office automation: summarizing an email or claim file or sending out personalized emails to all customers. AI can certainly do that.
The second is integrating AI into existing workflows. This is what I see most people doing. Where they had a non-AI tool, they're seeing they can get good returns by changing out and using different tools.
The third bucket is actual transformation. AI is going to continue to be integrated and accelerate. The capabilities and economics are such that it's going to be a compelling message, particularly in lines of business that are more commodity-based. You can certainly reduce your costs significantly.
PM: I'm very excited about the potential of generative AI. At The Institutes, we think it represents an opportunity for us to serve our customers. We teach ethics and hopefully can put an ethical mirror up to the RMI landscape saying, “These are great tools, but we're all here to help people, and we want to do that in an ethical way.”
I continue to be excited about the future of risk management and insurance because it makes people's lives better and safer. When we do that well, people can prosper and have better outcomes. Some of these new tools coming online could really help the RMI field achieve that objective. I get very excited about that.
AI Fraud in Auto Claims: Now Is the Time for Bold Collaboration
By Pete L. Miller, CPCUGenerative AI is rapidly reshaping how businesses process information, make decisions, and serve customers. But when it comes to vehicle insurance claims, it’s also amplifying a long-standing challenge: claims fraud.
Fraud in auto claims costs the U.S. property and casualty sector an estimated $45 billion annually, according to the Coalition Against Insurance Fraud. That burden adds up to about $700 in extra premiums for each household (PropertyCasualty360, May 2024). And the problem is evolving quickly: The Guardian reported a 300% increase in AI-manipulated vehicle images submitted to one UK insurer in just one year (The Guardian, May 2024). If that stat holds true, it makes deterring auto claims fraud that more urgent of an issue to address, especially because of how GenAI can be used by bad actors to manipulate claims submissions.
With GenAI, bad actors have the ability to fabricate auto claims scenarios with alarming realism, doctoring photos, swapping license plates, or creating deepfake “walkaround” videos of damage that never occurred. In one case, they digitally altered a van’s image lifted from social media to add a cracked bumper, submitting it with a fake invoice for over $1,000 in damages. Investigators discovered the untouched original online, exposing the deception (The Guardian, May 2024). Tools like metadata analysis or image forensics aren’t foolproof fail safes: metadata can be stripped or spoofed, and forensic models can struggle to keep up with the pace of new generative techniques. Meanwhile, manual claim reviews can be slow and costly to scale.
Insurtech applications of solutions like UVeye exemplify how trust can be embedded directly into the claims process. Their approach uses a three-layer system to validate vehicle condition: multi-camera scans capture detailed, frame-by-frame imagery; encrypted digital fingerprints create a tamper-proof record; and third-party oversight adds impartiality to the verification process. This isn’t just about detecting fraud after the fact; it’s about creating deterrence. By establishing a trusted vehicle history, verifying damage through a third-party, and automating assessments, this approach could reduce false claims and streamline workflows—driving both accuracy and efficiency, while also safeguarding integrity. Taken all together, these elements shift the claims process from one that reacts to deception to one that could neutralize it—while also creating a faster, fairer experience for legitimate claimants.
No single solution can address this risk on its own; collaboration among stakeholders across the risk management and insurance ecosystem is essential. That’s why The Institutes’ RiskStream Collaborative is developing scalable, systemic tools like RAPID X, which enables secure, private permissioned exchange of first-notice-of-loss data among carriers during a mutual event. At the same time, RiskStream’s AI Council brings together insurers, insurtechs, and research organizations to identify common AI use cases, such as fraud prevention, and to promote ethical, multiparty solutions that protect private data.
Together, these initiatives form the backbone of a more resilient claims ecosystem, one built on trusted data, shared standards, and aligned incentives. As generative AI continues to reshape the landscape, the industry must meet this moment with bold, coordinated action. Combating fraud is only the beginning. The real opportunity lies in transforming claims into a faster, fairer, and more secure experience for all stakeholders, insurers, service providers, and most importantly, policyholders.
Works Cited
Coalition Against Insurance Fraud, 2023 Annual Report.
Ashley Hattle-Cleminshaw, PropertyCasualty360, “Fraudsters using AI to manipulate images for false claims,” May 8, 2024. https://www.propertycasualty360.com/2024/05/08/fraudsters-using-ai-to-manipulate-images-for-false-claims
Rupert Jones, The Guardian, “Car insurance scam: fake damage added to photos,” May 2, 2024. https://www.theguardian.com/business/article/2024/may/02/car-insurance-scam-fake-damaged-added-photos-manipulated
Nicos Vekiarides, Insurance Journal, “Deepfake Fraud Is on the Rise. Here's How Insurers Can Respond,” July 17, 2024. https://www.insurancejournal.com/news/national/2024/07/17/784226.htm
UVeye Research, 2025 White Paper.
The Institutes RiskStream Collaborative: RAPID X and AI Council Initiative Overview.
How a Cyber Risk Management Framework Strengthens RMI Operations, From Underwriting to Advisory
By Diane HanlonIn an era of increasingly complex cyber-threats, organizations must be prepared for a wide range of attacks, from ransomware to cryptojacking to targeted data breaches. These risks pose a unique challenge to risk management and insurance companies, where protecting sensitive business and client information is a top priority. That’s why employee preparedness is so important. It’s a key defense not only for an organization, but also for RMI professionals who advise clients on how to manage risks.
Are your employees equipped to guide your organization and clients through the nuances of cyber risk? It’s predicted that the annual global cost of cybercrime will reach $15.63 trillion by 2029, an increase from $8.15 trillion in 2023. So the question isn’t if an organization will face cyber threats, but when. By developing a comprehensive cyber risk management framework, your team can safeguard your organization and become a trusted resource for clients.
To build confidence in handling cyber threats, it’s essential to have a cyber risk management framework in place that guides response efforts and continues to be relevant even as risks change and evolve over time. A cyber risk management framework is a structured approach to identifying, assessing, managing, and mitigating cyber risks. It provides a lasting roadmap to help companies address vulnerabilities, implement proactive safeguards, and effectively respond to incidents.
For RMI professionals, this framework can be a highly valuable tool for advising clients on effectively navigating cyber risk. These threats have grown beyond technical issues to affect the entire organization. From financial losses, to operational disruptions, to reputational damage, the consequences of a cyber-attack can be devastating to the entire organization. That’s why managing cyber risk, risk assessment, and continuous upskilling is crucial for every employee.
Despite the rise of AI and predictive modeling, your employees are the first line of defense against cyber risks. They are the guardians of your organization's data and the trusted advisors to your clients. And the best way to strengthen these crucial defenses is to incorporate robust cyber risk management training into your learning and development programs. This includes ensuring employees are familiar with your cyber risk management framework, can apply it to real-world situations, and can make practical adjustments when needed.
Consider having employees earn their Associate in Cyber Risk Management™ (ACRM™) from The Institutes Designations. This new designation is the first of its kind and is designed to help build lasting cyber resilience. Plus, investing in this specialized upskilling will not only help employees predict and prevent losses, but also grow your organization’s reputation as a leader in cyber security.
When building an effective cyber risk management framework, it’s important to account for the entire insurance value chain and continuously monitor the evolving risk landscape. Make sure your plan covers these five elements:
Risk Identification
Employees need the skills to identify vulnerabilities, both internally and for clients. By spotting risks early, they can help prevent potential issues and keep systems secure.
Integrating Cyber Exposures
Cybersecurity risks should be treated as an integrated part of any risk management strategy. Employees trained in cyber exposures can help clients see where cyber threats fit into the bigger picture.
Filling Coverage Gaps
Traditional insurance policies may fall short of fully covering cyber risks. Employees should be trained to identify these gaps, advise clients on potential vulnerabilities, and recommend better coverage options.
Incident Response
Responding quickly to a cyber-attack can make all the difference. Employees should know how to efficiently guide clients through incident response processes, minimizing damage from breaches.
Regulatory Compliance
Cyber regulations are constantly changing. Employees need to stay up to date on these rules to help clients remain compliant and avoid legal risks while securely managing threats.
Equipping your team with a strong cyber risk management framework is essential to managing cybersecurity risks. Empower your employees to invest in specialized training and upskilling with The Institutes Designations’ new Associate in Cyber Risk Management™ (ACRM™). This designation will help provide them with an adaptable framework to stay ahead of emerging cyber-attacks and better manage risks.
Enable your team to become skilled in cyber resilience strategies with the Associate in Cyber Risk Management™ (ACRM™) designation today!
