The Importance of an Educated Broker

Insurance is one of the last professions where most of those in the industry learn 90% of what they do after the end of their formal education. Yes, there are a number of people who hold a bachelor's degree in risk management, but there are only a limited number of schools offering this program. In fact, it's often a topic of conversation among younger insurance professionals to discuss what their undergraduate degree was. Some are business or finance, others political science, and mine is in biology. The most important skills for an insurance broker are critical thinking, problem solving, negotiation, and the ability to explain insurance topics to those outside our industry.

The only requirements to become a licensed insurance broker in most states are to be 18 years old, not be a felon, take a one week class and pass an exam. Oh, and just to make you feel better, we all take the same exam. The licensed office assistant that put you in good hands and protected you from mayhem, the call center rep that helped you save 15%, and me the broker that you trust with your directors and officers insurance for your board of directors. Now there is a scary thought.

So what separates those qualified to click through some computer screens and quote auto insurance, a task that some companies have moved online because it is so simple, from those that write complex commercial insurance? Quite simple experience and training. But how can businesses be sure that they have a broker with the experience they need? The insurance industry uses designations. We have a few industry associations that grant subject mater and general designations based on passing specific courses and experience. The most general designations are Chartered Property Casualty Underwriter (CPCU), and Certified Insurance Councilor (CIC), Associate in Risk Management (ARM) is also popular, as so many brokers serve as risk management consultants for their clients. CPCU consists of eight exams that are all recognized as college or graduate level. ARM is all graduate level exams. I carry both of these designations. There are also more subject specific designations, such as Associate in Reinsurance, Associate in Claims, Registered Professional Lines Underwriter and a few dozen others. They all show that the person you are dealing with has made some level of additional commitment to their industry education. While there are many well qualified commercial brokers that do not carry a designation, this is one of the easiest ways for a non-insurance professional to evaluate a broker.

In short, it's perfectly fine that most of us don't have a college degree in insurance. But, it makes continuing education and industry specific post college training all the more important.  Everyone deserves a broker well qualified to obtain the insurance they need. Make sure your broker is qualified to be your partner.