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.
Angela Pilotti
For most of insurance history, an underwriter's role was clear: Assess a risk, determine whether or not to accept the exposure, and set the appropriate price...
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How a Commitment to Learning Has Shaped Nicholas L. Glaser’s Insurance Career Path
By Skills Edge TeamSome careers in risk management and insurance grow within one specialty. Others move across functions, adding new skills with each step. Nicholas L. Glaser, CPCU, has done both. His insurance career path started in claims and led to commercial underwriting, the agency side, and now agency leadership. Along the way, he's never stopped learning. We asked Glaser what motivates him, how professional development has supported each move, and why The Institutes Designations have stayed part of his plan.
Answer: Part of being a professional must include a focus on continuous improvement—both to work toward mastery of your current skill set and to broaden it so you can work as effectively as possible with others across the many parts of your industry (or even in other industries). Professional designation programs have been my way of working toward those goals. Once I had about a dozen or so designations, I challenged myself to keep going and just didn't stop.
A: Upon entering the insurance industry full-time after college, I knew I had to pursue the CPCU®. My father is a CPCU, and I understand the gravitas that designation has within the industry. When researching courses with The Institutes, I found other designations focused on specific areas of insurance. Being in claims at the time, I decided to pursue the Associate in Claims (AIC™) in addition to the CPCU. Those courses helped build my knowledge base, enabling me to be a true professional and serve as a go-to resource for others.
I took a kind of hybrid vertical/horizontal career path, which I credit partially to the knowledge gained through designations. In claims, I worked my way up to a senior adjuster before moving over to commercial underwriting. I believe holding the CPCU helped me make the transition from claims to underwriting much more seamlessly.
After several years in underwriting, I was promoted to senior underwriter, then moved to the agency side as an account executive, and now I'm in agency leadership. I completed the Associate in Management (AIM™) designation this year to support my transition into a management position within the agency.
As I moved up and around within this industry, The Institutes Designations and courses were there to help me grow in confidence and skill. My professional development has also gone beyond just designation programs. I served as the 2018 president of the Greater Milwaukee Chapter of the CPCU Society, which helped me grow my leadership skills and spread the value of insurance education.
A: I honestly have takeaways from every single designation program I've completed. The CPCU offered the broadest application, providing a deep dive into both property and liability insurance and risk management, along with additional education in law, accounting, and operations as they relate to the insurance field. Studying the flood manual to earn the Associate in National Flood Insurance (ANFI®) designation was very helpful for understanding how the federal flood program operates and has been useful in assisting clients who need flood insurance. Most recently, I completed the Associate in Insurance AI™ (AIAI™) program. With AI being a hot topic in our industry, I'm very interested to see where it will go over in the next 4-5 years.
A: Studying is pretty much always done on personal time. I happen to enjoy learning as much as I can about our industry, so it was never a burden for me to fit studying into my personal life to continue my studies. If you aren't using any of your personal time to make yourself a better professional, you will fall behind.
It has been a bit more difficult in recent years with young children at home, but there is still time to fit in studying here and there. For my typical study routine, instead of going through course content linearly, I read chapter summaries first, then take practice exams or chapter quizzes to see which areas I already know and which I need to focus on. Then I can tailor the rest of my studying to only those areas where I'm not already proficient.
A: The Institutes have designation programs that cover just about every facet of our industry. When curiosity gets the best of me, I've found myself pursuing designations outside my current roles to better understand that part of our business.
For example, while I don't work in a wholesale environment, I pursued the Associate in Surplus Lines Insurance (ASLI™) designation to understand better surplus lines products and how to work more effectively with our wholesale partners to obtain the best coverage for our clients. I also started earning designations in the life, health, and employee benefits spaces to broaden my horizons in this area, including the Professional Employee Benefits Consultant (PEBC™) designation from The Institutes. Learning that side of the business has opened opportunities for cross-selling and working with the benefits folks at our agency. More recently, I've really enjoyed The Institutes' focus on emerging risks and hot topic issues in risk and insurance by earning designations such as the Associate in Cyber Risk Management™ (ACRM™), AIAI, and the Associate in Catastrophe Risk and Resiliency™ (ACRR™). Programs such as these have kept The Institutes at the top of my professional development list.
Nicholas's story is a reminder that career growth does not always follow a straight line. Each role can reveal new skills to build, new people to work with, and new parts of the field to understand.
For anyone thinking about what to learn next, his path offers a simple place to start: look at the work you are doing now, the opportunities you may want later, and the gaps that curiosity keeps pointing you toward. As a not-for-profit since 1909, The Institutes are committed to helping you build skills at every stage of your career, no matter where it goes.
Ready to plan your next move? Use CourseFinder to find a designation that fits where you want to go.
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.
6 Tips on How to Prepare for Your Exam in the 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 exam from The Institutes Designations and end the year with a strong sense of achievement in risk management and insurance (RMI). But it also falls 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 target exam date within the October 15 to December 15 testing window, which closes at 11:59 p.m. ET on the final day. Then, plan backward from there. Working in reverse helps you visualize how much time you have for each step, such as reviewing study materials, answering practice questions, 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.
Share your target exam date with your manager or family members early so they can help you prioritize your study time during this busy season.
A study in Memory & Cognition found that retention improved when material was practiced across more sessions. As a starting point, aim for three short study sessions (20 to 30 minutes) and one longer review (60 to 90 minutes) each week. This steady rhythm can help you avoid last-minute cramming.
Try to fit studying into the routines you already have. Review key concepts during a lunch break, discuss a course topic with colleagues, or set aside time for a short study session before or after work. When study time feels like part of your day instead of an extra task, it's much easier to maintain.
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. Focusing on the educational objectives in your RMI course materials can help you understand how central themes connect to on-the-job situations.
To put those concepts into practice, use the study tools available in your course to strengthen your understanding and identify areas for review:
Explore the exam prep tools and check your individual course for the resources available to you.
Create a travel-ready study kit that includes 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. For a quick reset, try the one-minute breathing practice described in this Psychology Today article.
Once you've completed your course materials and practice questions, use the simulated exam as a final check before exam day. This timed exam reflects the actual exam's format, timing, and question style, giving you a feel for the experience while helping you check your understanding.
You can take it only once, so save it until you've worked through the other study tools available in your course. Leave time afterward to revisit any concepts that need more attention before taking your actual exam.
In the days leading up to your exam, focus exclusively on light review and confidence-building activities. Review your notes and course materials, and revisit key practice questions you've marked. This is the time to reinforce what you already know, not overload your mind with new concepts.
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 what you've learned during the exam.
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.
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. With experience as a not-for-profit since 1909, The Institutes are committed to helping you build practical skills in risk management and insurance.
Ready to take your exam? Review the exam information and register through My Courses & Exams.
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.
The Future of Insurance Underwriting: Where AI Meets Human Expertise
By Angela Pilotti, CPCU, AReFor most of insurance history, an underwriter's role was clear: Assess a risk, determine whether or not to accept the exposure, and set the appropriate price. AI is now reshaping the insurance underwriting process, streamlining routine tasks and creating more opportunities for underwriters to focus on complex risks, strategic decisions, and the human judgement that remains essential to the role.
This means that the most valuable parts of the role still belong to the underwriter. Technology can extract data, triage submissions, and surface patterns at a rate no human can match, but pricing a complex account, questioning a model's recommendation, and weighing how each decision affects the broader portfolio still requires experienced professional judgement. That shift creates a practical challenge for organizations who must now deliberately develop expertise quickly that underwriters once built gradually through years of handling routine files.
An insurance underwriter evaluates risk on an insurer's behalf, determining which accounts to write under which terms. In commercial lines, that work includes reviewing broker submissions, analyzing financial and loss information, assessing how an account's exposures interact, and setting the coverage, pricing, deductibles, and conditions that reflect the level of risk.
Underwriters also manage a book of business. Each decision affects the portfolio's loss ratio and growth, so experienced underwriters weigh individual accounts against the carrier's capacity and profitability targets. Historically, much of an insurance underwriter's day went to gathering and organizing that information before any analysis could begin. That's the part of the daily responsibilities AI is changing the fastest.
AI is moving the field from manual case-by-case underwriting toward a machine-first and human-governed model, according to McKinsey. Automated tools support intake, risk selection, pricing, and issuance, while underwriters direct the process and own the decisions that require true expertise. This leaves more time for them to focus on complex accounts, negotiations, and portfolio strategies.
At the same time, an insurance underwriter needs to know how to govern the models themselves. AI tools learn from historical data, which makes them least reliable for more complex accounts and conditions that have changed since the data was collected. Underwriters need to understand what drives a model's output, recognize when a submission falls outside its limits, and document the reasoning behind any decision to override it. As carriers expand their use of AI, that oversight and attention to detail becomes a core part of the role.
Professional development also shapes retention. In a 2026 Carrier Management survey, 72% of underwriters said an employer's AI strategy would factor into future roles they choose, and 69% said their employer's approach made them more likely to stay.
Commercial underwriting has traditionally functioned as an apprenticeship: junior professionals develop risk judgement by working alongside experienced colleagues before taking responsibility for complex accounts, according to Triple-I. However, AI is automating many of those entry-level tasks, so insurance companies now need to build that expertise deliberately. Several approaches can help rebuild your underwriters' professional development path.
As AI, automation, and increasingly complex risks reshape insurance underwriting, strong human judgement is more important than ever. The Institutes Designations' new Associate in Commercial Underwriting (AU™) equips risk management and insurance professionals to make stronger decisions with modern skills by building the applied analytical, technological, and strategic expertise needed to confidently evaluate commercial risks and ensure overall portfolio health.
AU prepares your commercial underwriters to remain the human in the loop as technology evolves. You can even try AU and see if it's right for your team with this free sample course!
Angela Pilotti, CPCU, ARe, is Head of Education at The Institutes, where she leads the development of innovative learning resources and assessments for risk and insurance professionals. With leadership experience spanning reinsurance, underwriting, and content development, she brings deep expertise to risk and insurance education.
How to Build Risk Management Strategies for Better Business Decisions
By Adam Carmichael, CPCUYour risk management strategies only work if the people who approve them can see the options, the tradeoffs, and the decision in front of them. Making that case is a skill you can put to work right away. In the 2026 State of Risk Oversight study from NC State University's ERM Initiative and AICPA, 74% of executives and board-level leaders said their organizations had experienced a significant operational surprise within the past five years. Effective risk management strategies help you respond more deliberately by selecting the right treatment options and presenting them in terms decision-makers can use.
Read on for the main treatment options, how to choose among them, and how to make the case for what you recommend. And if you want to go deeper, The Institutes Designations' NEW Associate in Risk Management (ARM™) uses realistic business scenarios to help you build more resilient risk strategies.
A risk management strategy is the approach an organization takes to address a specific exposure. Most treatment decisions draw from four core options:
These risk management techniques are not mutually exclusive. An effective strategy often combines several of them so each addresses a different part of the exposure. They also assume the exposure has already been identified and prioritized, which is the job of a risk management framework.
No single treatment works for every risk. Your choice should reflect the likelihood and potential severity of the loss, the organization's objectives and risk tolerance, available capital, the cost and feasibility of controls, and any coverage or contractual obligations.
Consider a distributor concerned about a warehouse fire. It might avoid part of the exposure by no longer storing a particularly hazardous product. It could reduce the likelihood or severity of loss through inspections, safer storage practices, and sprinkler systems. Property insurance could transfer defined financial consequences, while a deductible and funded reserve would retain a manageable portion of the loss. Backup inventory at another location could further limit disruption.
The strongest recommendation is not necessarily the option that removes the most risk. It is the combination that supports the business objective at an acceptable cost while making the remaining exposure clear. Before you recommend an approach, identify what the organization is protecting, what constraints affect the decision, and how much uncertainty remains.
A risk report often begins with everything you found. A stronger strategy begins with the decision that needs to be made: Is the organization being asked to approve funding, change a process, revise a contract, select coverage, or accept a defined level of risk?
Once that decision is clear, frame the analysis for the person who must act. Finance may focus on capital, cash flow, and the relative cost of each option. Operations may prioritize continuity, downtime, and implementation demands. Compliance may examine legal obligations and potential penalties. Senior leaders may need to understand the strategic tradeoff and how the recommendation supports broader organizational goals.
The underlying exposure does not change. The framing makes its business relevance explicit. That matters most when you need to guide a decision without controlling the budget, process, or team involved. It is also why enterprise risk management has moved closer to business strategy in recent years.
A strong recommendation makes the available choices and their consequences easy to compare. Quantify expected costs and potential losses when credible data is available, but distinguish measured estimates from assumptions and professional judgment. Being clear about uncertainty strengthens your credibility and helps the decision-maker understand how much confidence to place in each figure.
When feasible, present more than one viable approach using consistent criteria. Compare the expected cost, potential loss reduction, implementation time, operational effects, and exposure that would remain. Then recommend the option that best balances those factors.
Close with the specific decision or action needed and when it is needed. A useful recommendation should allow the decision-maker to answer three questions quickly: What are the choices? What does each choice mean for the organization? What needs to happen next?
The strongest risk management strategies combine sound analysis, business judgment, and clear communication. All three are learnable, and helping students build them is what The Institutes have done since 1909. As a not-for-profit, The Institutes are committed to helping you succeed by educating, elevating, and connecting those interested in risk management and insurance to create a more informed, resilient world.
The NEW Associate in Risk Management (ARM™) develops each of the three skills above through realistic business examples and scenario-based learning. Try the free ARM sample course in as little as 30 minutes so you can see how that works before you commit!
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 New Era of Enterprise Risk Management: From Loss Prevention to Strategy
By Eric CzerwinA decade ago, risk lived mostly in insurance and loss prevention. Today enterprise risk management sits much closer to strategy, as organizations face increasingly interconnected operational, reputational, and emerging technology risks. As these exposures continue to compound, so does the demand for risk management professionals who can help navigate evolving business challenges.
Organizational leaders are increasingly turning to risk managers to weigh near-term and long-term exposure with executive-level clarity. In fact, in a recent McKinsey survey of more than 200 senior executives and risk professionals, respondents said risk now plays a broader role within long-term strategy, rather than focusing only on financial concerns. This new level of influence points to a larger shift in how organizations approach risk. Read on to explore how enterprise risk management is becoming a driver of how organizations make decisions, and how you can upskill your employees to support this need.
Enterprise risk management, or ERM, is a connected way of managing risk and viewing exposure across your entire organization. Instead of treating risk in a bubble, ERM examines how risks in operations, compliance, finance, and other functions relate to and influence one another. It gives decision-makers a holistic picture of where your organization’s vulnerabilities lie, so risk management becomes part of how you plan for the future.
At its core, enterprise risk management follows a continuous process that moves from identifying risks, to assessing them, to taking action and tracking the results over time.
Effective risk management starts with a wide field of view. That means spotting exposures that cross operations, compliance, cybersecurity, finance, and technology rather than focusing on one function in isolation. There are proven techniques to help your team do this, including SWOT analysis, risk registers, and key risk indicators. Remember: risks that look small on their own can carry real weight once you see how they connect.
Not every risk deserves the same attention. During this step, your team should weigh the likelihood, impact, and near-term versus long-term consequences of a risk event, then analyze it to find the root cause, contributing factors, and points of failure. Framing exposure this way gives decision-makers the executive-level clarity they need to act on what matters most and manage resources with confidence.
Once priorities are clear, your organization can decide how to treat each risk and then track it over time as conditions change. Be sure to encourage your team to utilize analytics and AI to efficiently and accurately identify exposures, quantify potential losses, predict future threats, and support risk-based decisions as new information arrives. In fact, organizations are already investing heavily in these capabilities, with the digital risk management market projected to grow from $11.89 billion in 2024 to more than $24 billion by 2029.
These fundamental steps provide a high-level overview of what your team needs to do. However, our online course, Executing ERM in Your Organization, shares advice from risk managers and chief risk officers to provide your team with practical strategies for developing your organization's enterprise risk management strategy.
The payoff of a connected approach to risk management goes beyond fewer losses. When teams share one view of exposure, the benefits reach across the whole organization:
Being able to interpret risk data clearly, apply emerging technologies, and collaborate across functions is quickly becoming a baseline expectation for risk managers. Building those capabilities across your workforce is the first step to turning risk management into a real advantage instead of a safeguard.
The Institutes Designations’ new Associate in Risk Management (ARM™) was developed for exactly that need. ARM provides a practical framework that strengthens decision-making, improves organizational resilience, and supports more proactive risk management strategies. By incorporating topics like AI, data analytics, automation, and emerging technology, ARM helps your employees understand how traditional risk management strategies are evolving in today’s business environment. You can even try ARM and see if it's right for your team with this free sample course!
Eric Czerwin is Director of Sales for The Institutes Knowledge Group. With a background in risk management and underwriting, he bridges strategic insight with practical execution while fostering long-term relationships. His focus is on empowering carrier workforces with enhanced skills and insurance field knowledge through organizational learning and development initiatives.
History of Insurance: 250 Years of Risk in America
By Skills Edge TeamIn 2026, the United States marks its 250th birthday. It is a natural moment to look back at how people, businesses, and communities have managed uncertainty across those years. The history of insurance is part of that story.
Long before today's complex policies, predictive models, and AI tools, people needed practical ways to approach risk, recover from loss, and protect what mattered. The Institutes have been helping people build those skills in risk management and insurance (RMI) since 1909, nearly half as long as the nation has existed.
The risks have changed. The need for clear thinking, sound judgment, and practical RMI skills has not.
The concept of sharing risk to soften loss stretches back centuries, but modern insurance has clearer roots in maritime trade. As European merchants moved goods across oceans, the need for organized protection against loss at sea became essential.
In the late 1600s, London became a center for that activity. Merchants, ship owners, and those willing to assume risk gathered at Edward Lloyd's coffeehouse, where deals were struck over shipping coverage. Those who agreed to cover a share of the loss signed their name under the policy terms, which is where the term "underwriting" comes from. That system eventually formalized into Lloyd's of London, still one of the most recognized insurance markets in the world.
The principle was simple: share the risk, price it carefully, formalize the agreement. That logic eventually crossed the Atlantic with early American settlers.
In colonial America, fire was one of the most visible risks. Cities were growing, buildings stood close together, and one fire could affect many families and businesses at once.
In 1752, Benjamin Franklin and his fellow firefighters helped found The Philadelphia Contributionship, often recognized as the nation's oldest successful property insurance company. Organized as a mutual insurance company, it brought policyholders together to share risk.
From the start, insurance was about more than paying after a loss. Buildings were inspected, risks were evaluated, and safer construction was encouraged. Those ideas still show up in underwriting, risk assessment, and loss control today.
The Philadelphia Contributionship is widely recognized as the first insurance company in America. Its founding reflected a clear need: help people recover from fire loss while encouraging better decisions before loss happened.
That balance between protection and prevention remains central to RMI. Whether you work in claims, underwriting, risk management, or as an agent or broker, the work often starts with similar questions:
The tools have changed. The questions remain familiar.
The history of risk management and insurance evolution in America is closely tied to the country's own growth. New forms of commerce, transportation, property ownership, employment, regulation, and technology all created new exposures. Over time, RMI became more specialized and more central to how people and organizations make decisions.
Here is a simplified look at that evolution in America:
The Institutes have supported RMI education since 1909, nearly half as long as the United States has existed. What began as a resource for property-casualty insurance professionals has grown into a broader education ecosystem built around real-world skills. The Institutes Designations' CPCU®, introduced in 1942, has since become one of the most widely recognized professional credentials as the leadership standard for risk management and insurance.
As the field has changed, what people need to learn has changed with it. The Associate in Insurance (AINS®) builds a strong foundation in insurance principles and how coverage supports people, businesses, and communities. For the future of the field, the Associate in Insurance AI™ (AIAI™) helps you understand AI concepts, ethical considerations, and practical applications in RMI.
When risks change, learning helps you stay prepared.
Understanding the history of insurance helps you see the purpose behind RMI work. This field is not only about policies, forms, or technical terms. It is about helping people prepare, respond, and recover when uncertainty becomes real.
A few things the past makes clear:
The history of insurance shows a field built around practical problem-solving. From early fire coverage to today's complex risk landscape, the goal has stayed consistent: help people understand uncertainty, reduce loss, and recover when disruption happens.
The risks ahead will keep evolving, but the need for skilled, credible people will not change. When information feels overwhelming, it helps to learn from a source grounded in verified expertise. The Institutes bring more than 115 years as a not-for-profit dedicated to educating, elevating, and connecting anyone interested in risk management and insurance so they can succeed.
Ready to explore your next step? Use CourseFinder to find a learning path that fits your goals, or visit Getting Started to compare options.
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.
Skills in Motion: 4 Insurance Education Trends L&D Leaders Need to Know in 2026
By Adam Carmichael, CPCUA transformative shift has been reshaping risk management and insurance (RMI) over the past several years. Spurred on by an impending retirement wave, an explosion of AI and machine learning technology, and an urgency to level-set skills across their organizations, learning and development (L&D) leaders are rethinking how to approach continuous insurance education and best equip employees with the right skills to drive success for their organization.
The Institutes Knowledge Group’s 2026 Skills Report provides skill trends and data-backed recommendations to answer exactly that. In the past year, our global community of learners completed over 170,000 courses and earned more than 10,000 designations across 48 countries. We used that data to create a holistic report that reveals trends reshaping how RMI organizations approach building professional development skills, as well as actionable next steps for L&D leaders.
Based on The Institutes Knowledge Group’s 2026 Skills Report, the four most significant insurance education trends are:
The sections below break down each trend, what it means for the RMI workforce in the next year, and what L&D leaders can start doing for their organization today.
Insurance fundamentals, claims, and risk management ranked as the top skill categories among learners in the past year. This reflects a widespread workforce transition: RMI organizations are onboarding new employees at scale and investing in getting them up to speed fast.
Looking ahead: The focus will shift from building foundational competency to deepening it. Those who have already established core skills will be looking for their next steps, and the organizations with a clear professional growth pathway will be the ones that attract and retain top talent.
What L&D leaders can do today: Establish an early career learning pathway that guides new employees from foundational insurance education into deeper expertise within high-demand specialties.
For example, risk managers who are looking for a natural progression after completing The Institutes Designations’ Associate in Risk Management (ARM™) will likely find value in courses like:
Leadership and strategy, communication and collaboration, and ethics and integrity were the three most sought-after soft skill set categories among learners in the past year. The most effective RMI professionals are combining technical RMI expertise with transferable skills like strategic thinking, customer service, and emotional intelligence. Deep RMI knowledge makes these soft skills more powerful: it's difficult to actively listen to a client's challenges without understanding the coverage issues at stake, or to effectively lead a team without grasping the technical complexities they navigate every day.
Looking ahead: High-potential leaders in RMI will increasingly be identified and developed not by technical credentials or soft skills alone, but by their ability to bring both together. Those who can apply RMI expertise with strong communication, ethical judgment, and strategic thinking will stand out in a competitive talent market.
What L&D leaders can do today: Offer a variety of leadership training that intentionally integrates RMI knowledge with soft skill development. 50% of survey respondents said a combination of self-study and in-person training programs works best for emerging leaders, according to The Institutes’ Enterprise Research team. Explore our leadership guide for a wide range of flexible online and in-person options you can incorporate into your leadership skill development efforts.
The half-life of a skill is the time it takes for that skill to lose half of its value or relevance. As AI, automation, and data analytics reshape RMI roles, that window is getting shorter, especially for technical skills.
IBM broke down this type of skill durability into three categories:
For L&D leaders, this distinction matters. Technical skills that were current two years ago may already need to be reskilled. Soft skills, by contrast, remain relevant far longer because they’re rooted in capabilities that technology can complement but never replicate. As new key skills emerge, reskilling and upskilling will only grow more essential to individual and organizational success.
Looking ahead: Simulation-based learning is the future of RMI insurance education. Research from the University of Chicago found that experiential learning can lead to retention rates as high as 90%, compared to just 5% from traditional lectures. Immersive, scenario-driven learning dramatically improves both how much professionals retain and how effectively they apply it on the job.
What L&D leaders can do today: Combine practical content with interactive learning to keep your employees’ skills sharp. For example, Masterclasses equip those in RMI with high-demand skills like strategic leadership, communication, and mentoring through formats that go beyond passive reading and recall.
AI is already reshaping how claims are processed, how underwriting risks are assessed, and how fraud is detected across the sector. But a significant gap remains: Low AI literacy across RMI organizations means many employees struggle to interpret AI outputs or know when human judgment should take precedence. While adoption presents real challenges, the incentives to build AI fluency are becoming increasingly difficult to ignore.
Looking ahead: AI literacy will shift from being a differentiator to a baseline competency across RMI roles within the next 1-2 years. Early adopters of AI fluency as a foundation for all learning (rather than an advanced specialization) will be the ones setting the standard for all other individuals and organizations that follow.
What L&D leaders can do today: Foster company-wide AI understanding by incorporating RMI-specific AI education into your existing professional development programs. Foundational AI online courses give employees across job functions a grounded understanding of how AI is optimizing RMI. For a deeper look into insurance AI, consider adding The Institutes Designations’ Associate in Insurance AI™ (AIAI™) into your learning pathways. This is the first designation of its kind that covers AI specifically in the context of risk management and insurance, offering a structured, practical approach to understanding and applying AI in real-world insurance contexts.
Monitoring risk management and insurance education trends is how the best L&D leaders stay proactive rather than reactive. Download our free, full 2026 Skills Report for visual breakdowns of the top skills, courses, and designations, across RMI roles; role-specific predictions for claims, underwriting, and risk management professionals; and even more insights into learner behavior and where the state of RMI skills development is headed.
These insights and courses are backed by The Institutes’ more than 115 years of experience as a not-for-profit, committed to helping individuals and organizations succeed by educating, elevating, and connecting those interested in risk management and insurance to create a more informed, resilient world.
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.
CPCU vs. MBA: Which Path Fits Your Career Goals?
By Skills Edge TeamYou're ready to take the next step in your career in risk management and insurance (RMI). The question is how. When comparing The Institutes Designations’ CPCU® vs. an MBA, both paths offer real value, but they're built for different outcomes.
Here’s the short answer: If you want practical leadership skills built specifically for risk management and insurance, the CPCU experience is designed for you. If you’re aiming for broader business exposure across multiple fields, an MBA may be the better fit. Understanding that difference early can help you choose a path that aligns with your goals, your timeline, and the kind of work you want to do next.
When you compare CPCU vs. MBA, the biggest difference is how you build and apply leadership skills.
CPCU focuses on the decisions you’re expected to make in risk management and insurance, including identifying exposures, evaluating financial impact, and recommending strategies that affect your organization’s performance, operations, and long-term outcomes. The learning is built around real scenarios that connect directly to risk management and insurance decisions and critical thinking.
An MBA takes a broader approach, combining leadership, strategy, finance, marketing, operations, and organizational management across different business environments. That breadth can be valuable if you’re seeking flexibility across roles or fields, but it is less focused on the specific challenges you face in risk management and insurance.
When making your decision, consider the following: Do you want to deepen your ability to lead within the RMI field, or expand your knowledge across business disciplines more broadly?
CPCU is for anyone who wants to build strategic leadership skills in the RMI field and be able to see across the entire insurance value chain.
The path is structured but flexible: five core courses, two concentration courses in either commercial or personal lines, one elective, a free ethics course, and matriculation, which confirms you’ve met the experience, education, and ethics standards required of CPCUs.
With CPCU, you will:
These are the kinds of skills decision-makers rely on every day, and they’re often what set you apart as you move into more complex roles in the RMI field.
An MBA may make more sense if your goal is to move across different business functions or fields, or if you’re preparing for a leadership role that requires a broad foundation across finance, marketing, and operations.
It can also be a strong option if you’re earlier in your career and still exploring where you want to specialize, or if your path is not centered on risk management and insurance. And if you do pursue an MBA first, it's worth knowing that MBA holders may be eligible to waive select CPCU requirements.
If you’re still weighing your options, a side-by-side comparison can help clarify the differences. The right choice depends on your goals, timeline, budget, and how closely you want your learning to connect to risk management and insurance.
| Features | CPCU | MBA |
|---|---|---|
| Overview | The leadership standard in risk management and insurance providing tangible leadership skills you can put into practice right away | A graduate degree used to show your commitment to professional development and learn about a broad array of business topics |
| Average Cost | $6,900 | $62,500 (Forbes) |
| Skills & Topics Covered | The core CPCU curriculum provides risk management and insurance-specific skills including:
| The core curriculum of an MBA focuses on general business-related topics including:
|
| Number of Courses | 8 courses and exams, plus a free ethics course | Average of 12 courses, or 36 credits (Grad School Hub) |
| Structure | Self-study, work at own pace | Semesters |
| Prerequisites for Program | No prerequisites
| An accepted application, typically including:
|
Want to see what the numbers look like for you? Use the CPCU vs. MBA calculator to explore cost and time based on how many courses you need to complete.
CPCU costs approximately $6,900 for courses and exams.
In comparison, an MBA averages around $62,500, according to Forbes. That’s a meaningful difference, especially if you’re balancing education with other financial priorities.
There are eight CPCU courses and exams plus a free ethics requirement and matriculation. It is a self-paced program, so you move at a speed that fits your schedule. Most students complete the designation in 1.5 to 2 years while working full time.
An MBA typically requires 36 credits, taking about 2 years to complete in a full-time format or 3 years in a part-time format, according to GradSchoolHub.
CPCU has no prerequisites. You can start whenever you’re ready, whether you’re early in your career or looking to build new leadership skills after years in the field.
MBA programs typically require a bachelor’s degree, application materials, essays, recommendations, and sometimes GMAT or GRE scores. Many programs also value prior professional experience as part of the admissions process.
If you’re ready to start building leadership skills now, CPCU lets you do that without an application process standing in the way.
The path to CPCU is well supported. Along the way, you can tap into study support, peer connection, and a broader community that helps make the process more manageable and motivating. Here's what's available to help you get started and stay on track:
If you're interested in exploring education assistance through your employer, this guide to education assistance for RMI professionals walks you through how to identify available support and start the conversation.
Since 1909, The Institutes have helped RMI professionals build the skills they need to succeed. CPCU is one of the most direct ways for you to develop practical leadership skills you can start using right away. You'll also join a community of more than 90,000 CPCU holders who are shaping the future of the field.
An MBA can help you learn about a broad array of business topics, but if your goal is to lead within the RMI field, CPCU aligns more directly with that path.
Still weighing the cost and time commitment? The CPCU vs. MBA calculator gives you an in-depth comparison in seconds. Or, if you're ready to experience CPCU firsthand, try the free sample courses to preview actual course content.
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.
Ethical Risk Management and Insurance in a Changing World
By Adam Carmichael, CPCUMarch is Ethics Awareness Month, but ethical decision-making matters year-round, especially as the risk management and insurance landscape continues to evolve. AI, automation, and other emerging technologies are changing how work gets done with greater speed and efficiency. At the same time, they also introduce ethical risks and questions about fairness, transparency, accountability, and trust.
That is why ethics is not a side topic. It is a practical skill that helps you make sound decisions when the path is not always clear. Whether you are evaluating data, communicating with customers, or using new tools in your workflow, ethical judgment helps you move forward with integrity.
Ethical risk management means making decisions that are not only effective, but also fair, responsible, and aligned with professional standards. In risk management and insurance, your decisions can affect customers, colleagues, organizations, and communities. That makes ethics inseparable from technical expertise.
In practice, ethical risk management is not just about avoiding the wrong choice. It is about building habits that support sound judgment, clear communication, accountability, and trust. Those habits matter even more when you are working with fast-moving technology, complex information, or competing priorities.
For example, you may have access to a tool that helps you process information faster. But using it responsibly still requires you to ask important questions. Is the output accurate? Is the process fair? Can you explain the result clearly to the people affected by it? Those are not abstract concerns. They are part of everyday professional decision-making.
New technology can help professionals work faster and uncover insights more efficiently. But speed does not replace judgment. In many cases, it raises the stakes.
In their bulletin on insurers' use of AI, the NAIC notes that artificial intelligence can support innovation, efficiency, and accuracy, while also creating risks such as inaccuracy, unfair discrimination, data vulnerability, and a lack of transparency or explainability.
That same balance shows up in broader insurance thought leadership. Geneva Association's report on responsible AI in insurance emphasizes that insurers need clear governance, transparency, accountability, and employee training to use AI responsibly. In other words, innovation works best when ethical decision-making is built into how new tools are introduced, used, and monitored, not added after problems appear.
That matters in risk management and insurance because many everyday decisions now sit closer to questions like these:
These are practical questions, but they are also ethical ones. As your work within risk management and insurance changes, your ability to navigate them becomes even more valuable.
Ethical considerations are often part of routine work, even when they are not immediately obvious. You might use an AI-assisted output without fully understanding its limitations. You might feel pressure to move quickly while still trying to ensure accuracy and fairness. You might need to explain a difficult decision to a customer who needs reassurance, not just information. Or you might find yourself balancing business goals with responsible judgment when the right answer is not immediately obvious.
These moments may seem small, but they shape trust over time.
That is also why ethics remains so relevant as organizations continue adopting digital tools. New capabilities can improve performance, but they do not eliminate the need for people to ask better questions, apply sound judgment, and communicate with integrity. In fact, the more advanced the tools become, the more important those human skills are.
At The Institutes, Ethics 311: Ethical Decision Making in Risk and Insurance is a free online ethics training course required for all Institutes Designations. It is also approved for state continuing education (CE) credits. It can be completed in just a few hours, only needs to be taken once, and is designed to help you identify and work through ethical dilemmas you may encounter in your day-to-day work.
That matters because ethics is not something to save for later in your career. It is a core professional skill. Technical knowledge helps you understand the work. Ethical judgment helps you apply that knowledge responsibly.
That same focus carries into The Institutes Designations' new Associate in Insurance AI™ (AIAI™), which includes ethics-related content in its courses. As the first designation of its kind focused on AI in risk management and insurance, it helps you apply ethical AI principles so you can spot bias, transparency gaps, and responsible-use concerns. It also helps you recognize AI's limits so you know when AI can support your work and when it should not.
Making ethics education accessible helps strengthen the profession as a whole. In a field where decisions can shape financial outcomes, customer confidence, and long-term relationships, ethical standards should not feel out of reach.
We offer Ethics 311 at no cost to learners because we believe that ethics should be a shared foundation, not a barrier. When more risk management and insurance professionals have access to a common framework for ethical decision-making, it supports stronger judgment across the profession.
Ethics matters in risk management and insurance because the work matters. It shows up in everyday decisions, in conversations with customers, in how new tools are used, and in how professionals respond when the right answer is not immediately obvious.
That is why Ethics 311 remains such an important part of the learning journey at The Institutes. It gives you a practical framework for navigating ethical dilemmas, strengthening accountability, and making decisions with integrity.
When information feels noisy and technology keeps changing, it helps to learn from a source grounded in verified expertise. Backed by more than 115 years as a not-for-profit, The Institutes continue to support learners with education designed for real-world decisions.
Complete Ethics 311: Ethical Decision Making in Risk and Insurance to strengthen your ethical decision-making skills, and visit the Ethics in Risk and Insurance Student Toolkit for additional course information and shareable resources.
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.
How Can You Leverage AI in Learning and Development to Enhance the Employee Experience?
By Eric CzerwinLeverage AI in learning and development efforts to enhance the employee experience by automating repetitive tasks, turning raw data into actionable insights, and helping your team work smarter. It’s no secret that AI is becoming a practical part of organizations’ day-to-day operations, and this is especially true for learning and development (L&D) teams in the risk management and insurance sector.
For instance, the Global Corporate Training Market was valued at $352 billion in 2024 and is expected to grow at an annual rate of 11.7% until 2030, according to a report from Research and Markets. This growth highlights a clear opportunity: Use AI in learning and development to create more consistent, personalized employee experiences and drive more engagement with professional development programs.
Explore how to use AI in learning and development, from onboarding to exam preparation.
AI can improve L&D onboarding by creating structured, scalable learning experiences that adapt as your organization grows. It can help personalize training, recommend role-specific content, and streamline onboarding workflows to support faster employee ramp-up.
Effective onboarding begins before a new hire’s first day, and AI can help L&D teams bring more structure to your planning process by mapping learning content to specific roles and business goals. By analyzing job requirements, available learning resources, and historical onboarding data, AI can help identify what training should be introduced early and what can be phased in over time. As priorities evolve, it can also help identify knowledge gaps and suggest updates.
AI tools can help benchmark key skills by analyzing historical performance data and emerging skill trends to define what employees should know within their first 30, 60, and 90 days. New hires often arrive with varying levels of experience, which can make it difficult to set consistent expectations. Benchmarking skills creates a shared baseline across roles while still accounting for specialized technical training in areas like claims, underwriting, or risk management.
Standardizing the employee experience makes professional development easier to navigate and more consistent across the organization. When learning requirements, resources, and expectations are clear, employees are more likely to stay engaged and take full advantage of available training opportunities.
AI can automate repetitive L&D tasks like scheduling training, sending reminders, tracking completions, and generating reports for L&D teams. AI technology is well suited to automate these routine tasks, including:
Plus, implemented AI and automation helps reduce errors, keeps information current, and gives your team more time to focus on more strategic priorities.
Employees usually have similar questions about learning requirements, progress, or next steps—especially as you further standardize their experience. AI-powered tools can deliver immediate answers by drawing from approved learning plans, policies, and FAQs. This ensures employees get reliable information without waiting for manual follow-up. It also reduces the volume of one-off messages that can slow down your team.
As the RMI landscape evolves, leveraging AI in learning and development efforts will only become more crucial to deliver relevant and timely training programs.
Regulatory updates, best practices, and skill requirements are constantly changing. AI-driven tools can help monitor emerging RMI trends and identify what skills are becoming most in demand. Rather than relying solely on periodic manual reviews, you can gain a more continuous view of where your L&D strategy may need to shift.
Employee feedback is invaluable, but analyzing it at scale can be challenging. AI can review all your learning data to surface patterns that might be difficult to identify manually, such as:
These insights help L&D teams move beyond anecdotal input and make decisions based on organization-wide trends.
Structured learning pathways are an effective tool to help employees plan their professional development in a way that aligns with your organization’s goals. Further personalizing these pathways to each employee’s personal career goals and interests can make learning feel more relevant and engaging. AI can suggest courses and designations based on role progression, existing expertise, and predictions on future skill trends.
The benefits of artificial intelligence can extend to your employees' study habits and professional growth as well. The Institutes Knowledge Group is a great example of how to use AI in learning and development to enhance the learning, retention, and skill building for each person.
Available in top designation programs, exam practice questions are carefully aligned to the content and format of the actual credentialing exam so your employees can strengthen retention of key concepts. Leveraging the power of AI, employees who are enrolled in a qualifying Institutes Designations course are able to:
Employees enrolled in a CPCU® or Associate in Claims (AIC™) designation course have access to the AI Assignment Assistant. This study companion offers personalized, assignment-level support that adapts to their study style. Specifically, it offers a variety of activities that help them test their understanding through guided practice, reinforce key terms and definitions, simplify complex topics, and more. Plus, it’s built exclusively on The Institutes’ course content, so employees can be sure they’re getting accurate feedback.
AI is already reshaping underwriting, claims, customer experience, and decision-making across organizations, so you need to equip your employees to be future-ready with practical AI skills. The Institutes Designations’ NEW Associate in Insurance AI™ (AIAI™) is the first designation of its kind that covers AI specifically in the context of RMI, offering a structured, practical approach to understanding and applying AI in real-world insurance contexts. AIAI will enable employees to improve their AI literacy and prompt techniques, better interpret AI-driven insights, apply AI across insurance operations, and embed AI into everyday workflows.
AI and adaptive learning are becoming increasingly valuable tools for L&D professionals looking to create more consistent, engaging, and scalable employee experiences. When applied thoughtfully, it can simplify administrative work, provide meaningful insights, and personalize professional development at every stage of an employee’s journey.
Essentially, the organizations that see the most value are those that embrace AI to strengthen their L&D programs. Connect with our team at Sales@TheInstitutes.org to learn how our AI-enabled tools and resources support skill development across risk management and insurance.
Eric Czerwin is Director of Sales for The Institutes Knowledge Group. With a background in risk management and underwriting, he bridges strategic insight with practical execution while fostering long-term relationships. His focus is on empowering carrier workforces with enhanced skills and insurance field knowledge through organizational learning and development initiatives.
Education Assistance for RMI Professionals: How to Explore Options With Your Employer
By Diane HanlonAs the risk management and insurance (RMI) landscape evolves, staying current with new skills is essential, but the cost of continuing education can add up quickly. Fortunately, many employers already offer some sort of education assistance, even if the opportunity isn't heavily advertised.
Here, we will walk you through the process of identifying available support, preparing your case, and having a confident conversation with your employer about education assistance benefits. With the right preparation and approach, you can unlock support that makes professional development more accessible and affordable.
Before you assume you're funding education entirely on your own, explore what your employer already offers. Support comes in many forms, and you may have options beyond traditional reimbursement.
Common types of employer education support include:
Some organizations formalize these through structured assistance programs, while others handle requests case by case. Many professionals find that support exists simply because they asked.
Preparation starts with clarity. Before requesting education assistance, take time to define what you want to achieve and why it matters.
Choosing an RMI designation or course that aligns with your professional goals is an important first step. If you’re unsure where to begin, try our free CourseFinder and view our guide to setting RMI professional development goals. You can also explore a variety of free sample courses to get a feel for the content.
It can also help to pause and ask yourself a few focused questions:
Employers also look for credibility. When validating the skills of the designation to your job or professional career aspirations, it helps to show it’s backed by a trusted, established source.
For more than 115 years, The Institutes have served as a not-for-profit dedicated to educating, elevating, and connecting people and ideas to create a more informed, resilient world. That legacy of trust, paired with structured courses and built-in study support, reinforces that you’re pursuing a respected program designed to deliver measurable, job-ready skills.
A thoughtful approach can help create a more productive conversation with your employer about education assistance.
Be specific about the expertise you’ll gain and how you’ll put it into practice. Rather than saying a course will make you "more knowledgeable,” explain the practical skills you’ll develop and where they’ll make an impact. For instance, if you wanted to pursue The Institutes Designations’ CPCU®, you could say, “I’ll be able to recommend risk management approaches to internal and external stakeholders to maximize our organization's strategic potential.”
This sample employer support letter can help you clearly communicate your goals, the value of your preferred program, and how it supports your role.
Many organizations actively support professional development through structured education assistance programs. However, some may not have a formal policy in place.
If that’s the case, it doesn’t mean support isn’t possible.
You might consider:
Even without a formal program, many organizations recognize the value of continued learning in risk management and insurance when it’s clearly connected to business impact.
Asking about education assistance is a normal, and increasingly important, part of professional growth in risk management and insurance. When you approach the conversation with clarity and purpose, you’re not just asking for support. You’re demonstrating initiative and long-term commitment to your role.
Whether your employer offers full funding, partial assistance, or needs time to review your request, the process itself strengthens your ability to connect learning with business impact.
If you’re ready to map out your next move, begin with our Getting Started guide to explore your options and identify the learning path that aligns with your goals.
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.
Insurance Investment Management in the Spotlight
By Skills Edge TeamIn January of 2026, The Institutes, in conjunction with recently added affiliate InsuranceAUM.com, announced the creation of a new designation, the Chartered Insurance Investment Manager™ (CIIM™). The designation is designed to bolster the knowledge and skills of insurance investment managers, an important and intriguing profession within the insurance universe. More detailed information about the designation, outlining course requirements and estimated time commitments, can be found here.
Risk & Insurance, which is affiliated with The Institutes, recently spoke with Stewart Foley, CFA, the founder and senior advisor of InsuranceAUM.com to find out more about the designation and about the career paths of insurance investment managers. You can read the original article on the Risk & Insurance website now. What follows is a transcript of that discussion, edited for length and clarity.
Risk & Insurance: Great to get the chance to meet you Stewart. What was the motivation behind creating this designation?
Stewart Foley: Insurance companies, according to Statista, manage about 30% of the world’s invested assets, and that total corpus is approaching $40 trillion. Up until now, there has been no textbook or real resources on how to manage the complex Rubik’s cube, if you will, of considerations when running insurance money.
There is a lot of interest in this area, and it has typically required on-the-job training that takes years and years to acquire.
What we tried to do was find subject matter experts on a broad spectrum of topics that provide a foundational understanding of insurance asset management.
R&I: Who should consider pursuing this designation?
SF: The most direct audience includes insurance investment professionals who work for insurance companies, those at asset management firms in this field, and consultants who advise insurance companies. Beyond that, there are insurance professionals who aren’t necessarily involved on the investment side of the house but would like to know more.
This could include C-suite executives, investment committees of boards, and other board members. Regulators and NAIC staff are also top of mind. I think you could see some interest from the academic community as well.
It’s a big audience, but the core would be folks who are actually in this business, particularly those earlier in their careers. I also think RMI students and new graduates out of college can create a competitive advantage by upskilling themselves with this credential.
R&I: Is insurance asset management taught in undergraduate risk management programs, and do people typically set out to enter this field?
SF: It is largely not taught in risk management schools. I certainly don’t have exhaustive research, but I’m not aware of this topic being taught. The majority of people in this industry got here by happenstance—it wasn’t a plan.
I’ve met one person in the last thirty-odd years of doing this who said to me, “I set out to do this. My dad was in the investment area at Prudential or wherever, and this was what I wanted to do.” Other than that one person, I’ve never heard of anyone who set out to enter this field.
It used to be that insurance companies had a relatively narrow band of asset classes that they would buy. When I started in this business, there wasn’t nearly the interest and fervor that there is around it now. After a protracted period of ten years of very low interest rates, insurance companies began to broaden the spectrum of asset classes they’ll buy.
It’s gotten a whole lot more interesting, and it requires a much more diverse set of skills than it used to. I always say that the insurance industry has changed more in the last three years than it has in the last thirty. There are many reasons for that, but there’s certainly an increased interest in this particular area of asset management.
R&I: What knowledge can professionals immediately apply in their roles after completing the courses from The Institutes Knowledge Group and earning the designation?
SF: There are some core things that are universal to insurance companies, and very few things that are universally applied. These include the regulatory environment, which is very important when managing insurance assets, the ratings process, how liabilities are considered in the investment strategy of the business, risk management, and statutory accounting, which only exists in the insurance industry.
This is not intended to be a master’s degree in insurance asset management. It is meant to be broad and somewhat fundamental in trying to reduce the amount of time that senior folks spend educating junior folks on the rules of the game, if you will.
R&I: What pain points or blind spots do insurance investment professionals encounter in their roles that this designation could help address?
SF: I’ll give you a great example. I spent many years managing core fixed income for insurance companies, and I had essentially no visibility into any other asset classes. I was interested in learning about those asset classes, but there’s no curriculum available.
Only the managers of these asset classes publish anything about them—there aren’t academics publishing papers on this stuff. So it’s very difficult to figure out how other asset classes work.
My thinking is that The Institutes’ designation will help you broaden your skill set even if you’re an insurance investment professional today. I’ve been at this for over 30 years, and we went out and found about 40 subject matter experts on all of these assignments. What that tells you is that nobody knows it all.
There’s a lot to know, and we took an innovative approach that The Institutes Knowledge Group facilitated where we’re taking the knowledge out of the subject matter experts and creating a legitimate curriculum that stands up to academic standards. Many professionals know one facet or maybe two or three, but we haven’t found anyone yet that knows it all. So you can certainly improve yourself and broaden your skill set.
R&I: What makes this partnership with The Institutes Knowledge Group particularly meaningful and effective?
SF: The Institutes is the go-to source for professional development in every aspect of insurance, with the exception of investments. Part of that is because the folks who really know this business are out making a very good living implementing those skills. This partnership is really an attempt to democratize that knowledge.
I’m a first-generation college student, and I believe strongly that education is the great equalizer. In my own mind, I picture someone who is a first-generation college student who can create a competitive advantage for themselves by getting this credential and making themselves more competitive with the significant number of world-class asset management firms and insurance investors.
InsuranceAUM.com’s slogan is “the home of the world’s smartest money.” The reason for that is not that everyone in the insurance space has a better crystal ball than the next person. It’s that insurance asset management is far more complicated due to the externalities of managing those assets.
You’re managing assets for an operating entity that is writing business on an ongoing basis—the liabilities, the loss experience, the capital position, the place of domicile—a host of externalities that other institutional investors don’t have to deal with.
In one way, this rounds out The Institutes’ otherwise excellent offerings, and we’re thrilled to be a part of it.
R&I: What is your elevator pitch to an insurance executive about why they should devote resources to getting their teams educated on the investment side of the business?
SF: In almost every case, the investment area of an insurance company is a significant source of revenue and profit. It simply makes sense that more people in your organization have a better understanding of that part of the business.
There’s always been a divide between the operations side of the company and the investments side. What CIIM attempts to do is bridge that gap. It’s the same way I would encourage an insurance investment professional managing money for a property and casualty carrier to get their CPCU® designation so that they have a better understanding of risk factors.
On both sides of the house, you’re pricing risk. You’re deploying resources, taking on risk, and pricing that risk—whether that’s underwriting a potential insured or buying an investment.
The core skill set is similar, though the vocabulary and issues are very different. My point to an executive would be to: upskill your team so that everybody has a better understanding of all facets of the company.
R&I: Is there an educational path that you would recommend for students interested in insurance investment careers?
SF: I was a college professor for a number of years, and the obvious choice for academic pursuit in this field is a major in finance. A lot of folks in the investment area come out of finance programs. However, I believe graduates from risk management schools are also excellent candidates for this work.
People with a risk management background understand insurance, and it’s easier to teach the investment side than it is to teach the insurance side. Individuals with a foundation in insurance who have an interest in the investment area are well-positioned for success.
This area needs talent, and it’s almost impossible to find someone who already knows insurance. You typically have to teach them all of that. This designation provides a structured curriculum where candidates can learn many facets of this field.
I would encourage anyone coming out of school, or even while still in school, to take a look at the Chartered Insurance Investment Manager (CIIM). It’s a great way to upskill yourself and create a competitive advantage when interviewing for an internship, which is a great way to get started, or a full-time position.
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.
