Those who worked hard to obtain their licenses, whether to become an insurance agent, insurance broker, or claims adjuster may wonder what’s the next step for their careers. Apart from engaging in the day-to-day activities of their business and accumulating continuing education (CE) credits, insurance professionals in the US may expand their knowledge and skills. They can accomplish this by earning additional insurance certifications.
More than providing insurance professionals with additional skills and knowledge, insurance certifications can provide other benefits, such as enabling them to pursue management roles in insurance companies.
And more than complying with insurance license maintenance requirements by earning CE credits, obtaining more insurance certifications makes insurance professionals more capable of learning new types of insurance and integrating new technologies into their practice.
In this article, Insurance Business discusses the top insurance certifications that can help insurance professionals advance their careers. We’ll delve into important topics like which certifications are best for insurance professionals, how to complete insurance certification programs, and more.
There are many insurance certifications you can pursue in the US, but these are the most popular for insurance professionals. These titles are preferred for the skills and knowledge they can provide:
The CIC covers common areas of insurance, including life, personal, and commercial lines. Offered by the National Alliance, this title has been around for over 40 years. It also covers specific areas like commercial casualty, commercial property, and insurance agency management.
This certification suits those who are interested in the workers’ compensation insurance niche. Offered by the Institute of WorkComp Professionals, the CWCA teaches candidates how to help their clients reduce their compensation insurance costs, provide HR advice to employees, and set up safety committees.
The CRM title is for those interested in assisting businesses assess and analyze their operations and pinpoint their risks. Governed by the National Alliance, this designation requires completing five courses over a period of 120 hours. Candidates will learn how to manage risks. This certification program can provide candidates with an in-depth knowledge of policy and insurance language.
Another designation governed by the National Alliance is the CISR, which enables insurance professionals to learn and practice risk management techniques for businesses and individuals. The CISR certification is useful particularly for those who manage both commercial and personal life insurance accounts.
The AAI credential helps agents learn about property and casualty lines, underwriting and customer services. Offered through The Institutes, this designation requires candidates to take at least four classes and pass an exam.
The CPCU certification is best suited for anyone who works at an insurance company, and not only insurance agents. Governed by The Institutes, the CPCU certification covers all areas of the underwriting process.
This title is generally very useful for most insurance professionals, since it provides candidates with a better understanding of insurance accounting principles and legal concepts within the insurance industry.
The CWCS is another option for those who want to specialize in workers' compensation insurance.
With the IWCP program, candidates learn about experience modifiers, claims management and audits. This certification provides a broader focus across multiple insurance disciplines and may allow agents to provide workers' compensation education for both employers and employees.
The ARM is a good choice for professionals who wish to focus on risk management. This certification consists of taking three examinations and is indispensable in teaching essential risk management principles.
You may wonder or come across some free insurance certificates offered by various platforms or institutions. A couple of notable examples of free insurance certifications include:
Note that these free certifications are sometimes mere samples of the full-on paid courses. While some of these free designations may be useful, they may not offer the same benefits as a fully paid course.
For instance, clients and prospective employers may not see insurance professionals who have obtained free certifications on the same level of skill or credibility as one who has earned full certification. And as the free certifications typically contain a fraction of a full course, they do not require licenses or other qualifications.
The previous seven insurance certifications are the most popular and are typically what experienced insurance professionals may advise to take. If you feel that those designations do not fit your needs or won’t give you the credentials or skillset you’re looking for, here are other certifications you can look up and earn:
An insurance certification is a designation that serves as proof that an insurance professional has completed training in a specific area of insurance.
Earning an insurance certification typically involves taking specific courses, then taking the related exams and garnering an acceptable passing grade. Many of these certifications, much like obtaining an insurance broker license or insurance agent license, require completing continuing education courses to maintain the certification.
What is the rationale behind earning insurance certifications? There are several benefits to getting one, including:
There are some studies that also confirm that those with more professional certifications in general do make more money than those without credentials. When applying for a job, they’re more likely to be hired over other candidates. Certified professionals are often happier as well.
Getting additional insurance credentials not only benefits the individual, but also the consumers.
Insurance professionals with certifications are more knowledgeable and adept at understanding and interpreting the nuances of important insurance documents. A couple of the most important of these documents are the Certificate of Insurance or COI and the proof of insurance.
Small business owners and individual clients who cannot make heads nor tails of documents like these will find someone with the right insurance certifications useful. They can help them better understand and appreciate their insurance coverage. As an insurance practitioner with these certifications, your in-depth knowledge can help clients gain better insight on their policies.
You can follow a straightforward process when obtaining any of these insurance certifications. While there are many to choose from, the certification process does not differ much. Here are the steps to getting the appropriate insurance certifications:
These are the three organizations that are mainly concerned with providing the courses for most insurance certifications in the US:
The insurance certification you pursue and your insurance specialization will determine which of these organizations you must transact with.
The broadest and most common insurance specialties are:
There are more specialized types of insurance nowadays, including marine insurance, flood insurance, and workers compensation. As new technologies develop, new risks emerge, giving rise to more niche types of coverage.
You may also choose novel insurance types like cybersecurity insurance, cyber insurance for cryptocurrency, and even insurance for satellites launched into space. Choosing your specialty early in your career can help you map out your career path and make it easier to choose the most suitable insurance certification.
Each of these certifications has certain qualifications or prerequisites. To avoid confusion or wasting time, be sure to find out what your chosen certification requires.
Get familiar with any exam preparations, qualifications, required courses, prerequisite licenses, fees, state exam, or any other requirements before embarking on your certification program.
Many of the available insurance certifications require completing at least one course. However, candidates may have to complete at least five courses on core insurance competencies. There may also be elective topics and additional knowledge covered to prep for your insurance certification exams.
To earn the credentials, most of these certification programs require passing a written exam. Depending on the certification, the exams can be proctored online or at testing centers.
If you have any questions about the exam, like the most helpful courses or exam content, you can ask a representative of the appropriate institution. Note that the passing rate for most of these titles is 70%, but this can vary across certifications.
Step 6. Take continuing education courses
To maintain your certification and keep it current, you may be required to earn CE credits. These are credits earned from CE courses within a specified period.
Some certifications may require that you earn a specific number of credits every one, two, or four years. The time limits can vary by line of authority and location, so check your certification’s CE requirements to be sure.
There’s a multitude of benefits to obtaining additional certifications. Apart from making your resume look more impressive, additional insurance certifications can help you further your career at an insurance company.
In specific situations like an insurance audit, additional insurance certifications can make it easier for you to analyze important data, then help your business or your client make informed decisions. Another useful instance is when a client requests a COI or other insurance document. Your insurance certifications can enable you to make sound recommendations and ascertain whether the COI is ample proof of a company’s financial stability.
As business and technology become more advanced, these and other new certifications in insurance can help you become adept and familiar with the new risks and new insurance needs that come with them.
By having certifications like these, the possibility of being ranked as one of the best insurance professionals in the country won’t be far off.
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