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.
Adam Carmichael
March is Ethics Awareness Month, but ethical decision-making matters year-round, especially as the risk management and insurance landscape continues to evolve. AI, automation...
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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.
And if you prefer to prep by watching, check out Tips on Preparing for The Institutes Designations’ Exams for a quick rundown of study strategies from Eric Czerwin, Director of Sales, and Diane Hanlon, Head of Sales and Market Development.
* Based on analysis of CPCU®, AINS®, and ARM™ student exam results versus exam-preparation methodologies, 2020-2021.
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. .
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!
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.
The Institutes Introduce a New Designation to Meet Insurance Operations Challenges
By Skills Edge TeamAs operational models shift across risk management and insurance, carriers are increasingly turning to outsourcing partners to handle key back-office functions. At the same time, internal operations departments must adapt to meet rising expectations around speed, service, and accuracy. Across both environments, a shared need has emerged: the rapid development of insurance-specific operational expertise.
Risk & Insurance, which is affiliated with The Institutes, recently spoke with Diane Hanlon, Head of Sales and Market Development at The Institutes Knowledge Group, about what they are doing to address this need. You can read the original article on the Risk & Insurance website now.
To address this, The Institutes launched the Associate in Insurance Operations™ (AIO™) designation—a credential specifically designed to elevate workforce readiness for both insurance carriers’ internal operations teams and business process outsourcing (BPO) firms.
“Our research with more than 450 carriers and 65 outsourcing firms revealed an urgent need for standardized operational knowledge and faster employee ramp-up,” said Diane Hanlon.
The Associate in Insurance Operations designation was developed as a unifying solution, grounded in research that identified the specific skills carriers require from their operations staff—whether part of internal teams or outsourcing partners. It establishes a common standard of operational knowledge to support consistent training, enhance alignment, and promote greater efficiency across the extended insurance enterprise.
Key topics include claims and underwriting fundamentals, policy administration, and client service essentials, framed within real-world insurance workflows. The result is a practical learning experience that empowers internal teams to perform more efficiently and equips outsourcing partners with the knowledge carriers expect.
“Insurance operations professionals needed a designation that specifically addresses their unique role in the industry,” Hanlon explained. “While there are many excellent insurance designations available, there was a need for one that specifically targeted the operational knowledge required for efficient processing, enhanced client service, and streamlined workflow management.”
The Institutes Designations’ Associate in Insurance Operations is particularly suited for early-career professionals working in carrier operations, outsourcing firms, or brokerage support roles. It offers a targeted curriculum that develops both technical proficiency and essential soft skills, including critical thinking, analytical reasoning, and effective communication.
“Associate in Insurance Operations designees gain the ability to navigate policies, assess claims and applications with precision, and contribute to more seamless operations,” Hanlon added. “These are skills that translate into real business value—better service, fewer errors, and stronger reputation management.”
Designed with working professionals in mind, the AIO designation features a streamlined structure:
Each course takes approximately six to nine hours to complete. Most professionals can finish the program in three to six months, making it an efficient path to upskilling. Exams are delivered fully online, with 60-day testing windows offered throughout the year and discounted pricing for those who register early for the exam.
Upon completion, designees earn a diploma and digital badge that can be showcased across professional networks. Additionally, Associate in Insurance Operations coursework provides credit toward other Institutes Designations and may count for continuing education (CE) credits in most U.S. states.
“The Associate in Insurance Operations reflects our commitment to creating relevant, accessible solutions that meet the evolving needs of insurance operations,” said Hanlon. “It’s not just a credential—it’s a strategic asset for any organization committed to operational excellence.”
The Top Risk Management and Insurance Skills Shaping the 2025 Landscape
By Adam Carmichael, CPCU
Everything You Need to Know About Taking an Online Proctored Exam
By Angela Pilotti, CPCU, AReTaking an exam is the culmination of weeks—even months—of studying and preparation. When you finally complete and pass that exam, you want to be sure that there are safeguards in place to retain the value of the designation or credential you worked so hard to earn.
That’s where virtual exam proctoring comes in. It’s a seamless, reliable way to ensure a fair and equal experience for all test takers. Through secure recording and standardized procedures, online proctoring helps maintain the same integrity as a traditional in-person test center (just with a lot more flexibility). Read on to explore everything you need to know about taking an online proctored exam, how it benefits your professional journey, and how you can be as prepared as possible when it’s time to sit down and test.
If you've taken the SATs in high school or a midterm in college, you're already familiar with how a proctored exam works. It's a standard educational practice where someone oversees the exam process to ensure fairness across all test takers. Online proctoring takes this same concept and applies it to the exams you take remotely, offering the added convenience of taking an exam in your own home, on your own time.
There are two types of virtual proctoring: live proctoring and record & review proctoring. Live proctoring is when a supervisor oversees a student take their exam in real time and most closely resembles in-person proctoring. Record & review proctoring, however, is when the assessment platform uses a remote proctoring software to record a student’s screen, webcam video, and audio as they test. Someone then manually reviews the footage afterwards as needed. This is the approach we recommend, as it provides a much less intrusive experience while still maintaining the highest standards of exam security.
Virtual exam proctoring offers several key advantages that directly benefit you as a professional, especially in risk management and insurance fields where the skills gained from specialty designations can be used on the job right away.
Protects Your Achievement: When you earn a designation, you want employers to know it truly reflects your expertise and dedication. Virtual proctoring ensures that everyone earns their credentials fairly and with integrity.
Maintains Credibility: You can rest assured that the designation or credential you’ve just completed keeps its value and is not awarded to those who didn’t earn it.
Provides Flexibility: Easily complete your online exams from any computer with a webcam and microphone. This freedom allows you to better balance your professional development with other commitments.
The Institutes uses the record & review method. Students’ exam sessions are recorded to ensure compliance with exam rules and reviewed by our Assessments team as needed. We also partner with Talview, a leading remote proctoring provider, to deliver a secure and user-friendly exam experience. Before your exam begins, you'll be asked to consent to the recording. All recordings are handled in compliance with industry data and security standards, including GDPR, ensuring your privacy is protected throughout the process.
Those in risk management and insurance trust and value The Institutes Designations because they represent a high standard of knowledge and professionalism. Virtual proctoring is another way to ensure they continue to maintain their value and credibility.
For a detailed look at the virtual exam proctoring experience, check out this video or visit our FAQs page.
To ensure a smooth experience when taking an Institutes Designations exam, make sure you have the following:
Required Hardware
Supported Operating System
Supported Browser (Latest Version or up to 3 Previous Versions)
And don't forget to test your camera and microphone at least 48 hours before your scheduled exam time to make sure everything works properly!
Proctoring for online exams is already a widely accepted practice among leading professional education providers, including the CFA Institute and Project Management Institute, and will only continue to grow in prevalence and relevance. It represents an important step forward for the learning and development of RMI professionals. In protecting the value of your professional achievements, you’re setting yourself up for greater success now and in future roles.
Ready to take the next step in your professional development? Explore what The Institutes Designations has to offer and learn more about their virtual exam proctoring today!
