Letter to the Editor: Employers Can Help to Increase Professionalism

I read Christopher J. Boggs’ commentary, “AIG Crisis Highlights the Need for Insurance Professionalism” (see page N40) and I would like to voice agreement with certain of his assertions and strongly dispute others.

First of all, I heartily agree with Mr. Boggs on the need for professionalism in the insurance industry. One needs look no further than recent headlines to see evidence that professionalism is critical in ours and other industries. I believe that education is the cornerstone of professionalism, built upon a strong ethical foundation. Indeed, this is precisely why the American Institute for CPCU and the Insurance Institute of America have served the industry for nearly 70 and 100 years, respectively.

I am not willing to accept, however, that we are experiencing, as Mr. Boggs suggests, “the end of professionalism” in the property/ casualty insurance industry. Mr. Boggs’ own definition of a professional comprises characteristics that I would include when describing Institute students and designation holders, including “dedicating themselves to studying and understanding the industry, the client, and the mechanism.”

Mr. Boggs suggests that “professionalism is evidenced by desire and passion.” While those two traits are important, they are not nearly enough. A person can possess desire and passion and still not succeed in his chosen line of work.

Professionalism also requires understanding and application. A professional must understand the needs of her clients, the regulatory environment of the industry, and the strategic goals of her organization. Only then is she able to correctly apply the knowledge she has gained from her work experience, from her mentor, and from her professional development.

I also disagree that industry specialization is somehow linked to the practice of professionalism. If you understand your business, clients, and market — while properly applying the correct technical knowledge — it is possible to be professional, irrespective of the products you sell or the services you offer.

Additionally, I dispute Mr. Boggs’ suggestion that “a CPCU without the passion to immerse herself in continual study is little better and maybe not as good as a newbie ….” While I agree that all CPCUs should pursue lifelong learning, a CPCU by definition must have three years’ professional insurance experience, pass eight rigorous essay examinations, and agree to be bound by a stringent code of ethics. As such, a CPCU possesses more knowledge and experience than someone new to the industry and also has learned an ethical framework within which to operate.

Furthermore, the Institutes are professional development leaders in the property/casualty insurance industry. The technical content of our educational materials is created by our own staff experts, leading insurance professionals, and academicians. Designation holders must study those materials and pass a series of rigorous examinations demonstrating command of the technical content. It requires a significant commitment of time and energy to earn one of our credentials and I reject the implication that holding CPCU or any of our designations is “fluff” of any sort.

I will admit, however, that our designations do look good on a resume — and they should. It takes a lot of hard work and dedication to earn an Institute credential. But the designation is only an outward symbol of the significant technical knowledge gained in earning it.

Employers can help to increase the level of professionalism in our industry by encouraging and rewarding professional development at all levels of the organization. The newest and youngest members of our industry belong to a generation that tends to value learning for the sake of learning. By engaging these employees in professional development from day one, insurance organizations will be better able to strengthen the foundation of professionalism that our industry needs and that its customers deserve.

Topics Commercial Lines Business Insurance Market