Deciphering the designation: CPCU
What is the CPCU designation, who is it for and why does it matter for your career?
Editor’s note: This column is part of PropertyCasualty360’s Foundations of P&C Insurance series, which aims to bring new insurance professionals up to speed, while keeping industry veterans sharp. On Fridays, PC360 will offer up fresh content covering the nitty-gritty details of P&C insurance, tips for professional development, articles looking at the industry’s more niche concepts, and the history of certain lines and programs.
Why are designations important to insurance professionals/? In addition to each state mandating specific requirements to maintain your license, pursuing additional knowledge can unlock new opportunities and long-term success. Selecting the appropriate insurance training programs will enhance your expertise, elevating the value you provide to your agency and clients.
The chartered property casualty underwriter (CPCU) is one of the most well-known, and equally well regarded, designations granted by the American Institute for Chartered Property Casualty Underwriters, or The Institutes as it is more colloquially known. The designation was established in 1942 by academic leadership from the Wharton School of the University of Pennsylvania.
According to The Institutes, 98% of those that earn a CPCU designation gain a skill they can apply right away to their job, while 95% said the designation positioned them for new opportunities.
Who is the CPCU designed for?
The CPCU designation is for “anyone looking to gain a broad view of insurance or gain strategic leadership skills in the risk management and insurance field,” according to The Institutes.
Why do people pursue a CPCU designation?
According to The Institutes, by obtaining the CPCU designation insurance professionals can gain a deeper understanding of how to:
- Identify and analyze costly risks to improve your organization’s bottom line.
- Solve strategic business challenges with a comprehensive view of the insurance landscape.
- Confidently answer internal and external stakeholder questions with a legal understanding of insurance policies.
- Better understand financial statements to gauge an insurer’s financial health and assess its strengths and vulnerabilities.
- Use data to further contribute to the insurance value chain and elevate your organization’s competitive advantage.
In addition to a better understanding of the business, the designation also offers access to CPCU Societies, which provide further educational programs, leadership opportunities and networking events.
How a CPCU designation is achieved?
The CPCU program starts with five core courses covering topics from leadership to applying legal concepts to insurance. From there, students choose either a commercial or personal insurance track and complete two courses focused on one of those sectors. After this portion, students select one elective course from an offering of five with topics such as big data analytics, managing cyber risk, and reinsurance products and transactions. All CPCU completers must also take an ethical guidelines course.
Each course is capped by an exam.
In addition to the coursework and exams, students must also complete at least two years of experience in risk management and/or insurance. This requirement can be completed at any time the student is on their “CPCU journey,” according to The Institutes.
How long does it take?
It can take two to three years to complete a CPCU program, on average, according to Distinguished Programs, which noted preparation is one of the keys to achieving the designation.
According to the insurance education study resource provider AssociatePI LLC, the average cost to obtain a CPCU is around $6,000.
Related: