There’s a long list of certifications that insurance professionals can obtain for advancing their careers. You may be wondering which certifications can help you stand out among other job applicants or move up the corporate ladder? Or perhaps make you an industry expert or more credible to potential employers and clients?
One such title, especially in the insurance and risk management fields, is the Chartered Property Casualty Underwriter (CPCU) designation.
The CPCU is administered by American Institute for Chartered Property Casualty Underwriters aka The Institutes. This title is often pursued by insurance agents and brokers, insurance claims representatives, risk managers, and insurance underwriters. What makes this certification compelling for insurance professionals is that it is informally referred to as “the CPA of the insurance industry”.
So, what is a Chartered Property Casualty Underwriter? What are the requirements and courses needed to earn the CPCU designation? We’ll shed light on these and other important questions about this title, so let’s get down to business.
The Chartered Property Casualty Underwriter is a professional credential earned by those who want to specialize in risk management and property-casualty insurance. Risk management and insurance professionals alike favor this designation for the specialized knowledge and skills it teaches.
As with most other similarly respected and prestigious insurance professional credentials, there are prerequisites for eligibility to earn the CPCU title.
In terms of educational requirements, there is no formal requirement for a candidate to have a college degree. It should be noted that the CPCU designation is considered equivalent to a master's degree in the insurance industry, particularly in the property-casualty segment.
As for the main requirements, earning this title involves extensive work experience, coursework, and successfully completing the exams. Candidates need to have at least two years of professional experience in insurance or risk management.
Candidates study risk management, insurance, accounting, and underwriting. Taking on the Chartered Property Casualty Underwriter designation can increase an insurance professional’s knowledge and set them apart from other professionals in the industry.
This designation is regarded in high esteem in the insurance industry, at least where property casualty insurance is concerned. You can choose to take courses and exams from The Institutes or other accredited providers. You can obtain the CPCU by following these steps:
There are five required courses for obtaining the CPCU, and The Institutes is one of the most common course providers. These are the core courses you need to take to obtain the title:
These courses provide candidates with the foundational knowledge for becoming successful CPCU titleholders. After each course, you must complete an exam within a time limit of 65 minutes. The passing grade for most of these exams is 70 percent.
After taking the core courses and passing each of their exams, candidates must take two concentration courses. These courses are meant to give candidates more focused expertise on either commercial or personal lines. They can choose either one of these tracks:
Candidates can then advance to taking an elective course after completing the five core courses and two concentration courses. They can choose one out of these five elective courses:
Once candidates have completed the courses, they must take a free ethics course and undergo the matriculation process. These requirements are proof that CPCU aspirants have the experience, education, and ethical standards expected of the title.
These requirements typically take one to two hours to complete and can be done at any time in the course of the candidate’s CPCU certification.
The way to maintain most professional designations is to take on continuing education (CE) courses. As for the Chartered Property Casualty Underwriter designation, this means having active and continual participation in the CPCU in Good Standing program offered by The Institutes.
A CPCU is considered “in good standing” once they’ve completed 24 CE credits within the first two years of earning the designation or accomplished their renewals within their continuing two-year reporting period.
If a renewal is not completed before the two-year reporting period finishes, the CPCU is deemed inactive, but their designation does not expire.
Yes, there are several other alternatives to The Institutes. Some popular options include:
These course providers offer a mix of video lectures, audio lectures, practice quizzes, and study guides to help students prepare for the CPCU exams.
The cost of obtaining the Chartered Property Casualty Underwriter designation can be significant. Depending on the course materials and course provider candidates use, they can expect to pay around $6,000 or more. These costs can include a variety of study materials, online or in-person classes, and exam registration fees for all eight required courses.
The amount of time it takes to earn this designation largely depends on the individual and how much time they have to study and take the courses. It is not uncommon for some insurance professionals to finish all the courses and obtain the CPCU title within a year, but this is more realistic for full-time students.
Meanwhile, those who are employed may take a couple of hours of study after work and are advised to study for about two to three weeks before taking each of the exams. Note that the industry average to complete the CPCU program is two to three years.
Knowing the considerable effort, time, and cost of earning the Chartered Property Casualty Underwriter designation, should you pursue it? Here are some advantages of taking the certification:
The CPCU designation can give you a broad understanding of underwriting, claims, risk control, accounting, and other critical insurance company functions. This designation can also train you on how successful insurers use data and technology to make day-to-day decisions.
Candidates have the option of getting the standard CPCU program or supplementing it with the Associate in Risk Management option, giving them the best of both certifications. Such flexibility can translate into greater career choices and opportunities for advancement.
Having this designation affords broad recognition and is of great value in the insurance industry. Those who hold the CPCU title are widely respected, thanks to the rigorous courses, relevant content and strict code of conduct.
Corollary to the enhanced knowledge, experience, expertise and credibility, the CPCU designation can boost your confidence considerably. This confidence can also help you in getting new clients, retaining existing ones, and forming new connections in the insurance and risk industry.
The Chartered Property Casualty Underwriter designation is held by a select few insurance or risk management professionals. The main reason for this, apart from the considerable commitment required, is that earning this designation is no easy task.
CPCU holders are seen as among the few professionals with in-depth information and knowledge in property and casualty insurance. Such a designation is more critical these days, with the emergence of new risks or threats to insurance companies and their clients.
Having this title can make you stand out among potential employers, making you an attractive hire or get you promoted at your current employer.
Aspiring and actual CPCU titleholders can have access to industry events, seminars, and conferences and meet other insurance professionals. This designation can help you gain membership in organizations like the CPCU Society and leverage opportunities to meet potential employers or partners in the industry.
This title is not the equivalent of a master's degree but is often treated as one in the property-casualty insurance segment. The comparison to a master’s degree arises mainly due to its extensive work experience, coursework, and stringent exam requirements.
Under the CPCU, candidates do comprehensive studies on risk management, insurance, accounting, and underwriting. This designation is excellent for increasing your knowledge and helping you stand out from other industry professionals.
The CPCU title can open doors and help insurance professionals advance their careers. Some common job titles and career paths for CPCU designation holders include:
Underwriter – perhaps the most obvious career choice for the CPCU, insurance underwriting roles can branch out into a variety of different careers in compliance, claims, or insurance product fields.
Risk Manager – as CPCU coursework covers risk management, roles like Risk Analyst or Risk Manager are natural career paths. There are even more risks to businesses today that can be very destructive and unexpected, like natural catastrophes – making risk managers with the CPCU more valuable.
Claims Consultant/Adjuster -- Claims consultants and claims adjusters’ careers can benefit greatly from the CPCU designation.
Insurance Agent/Broker -- the CPCU designation can give insurance agents and brokers specialized knowledge and expertise that can help them better serve their clients.
Analyst Roles – the CPCU designation can be helpful to roles like the Senior Insurance & Risk Management Analyst and Pricing Analyst.
Leadership Roles – earning the CPCU credential can equip candidates with the knowledge and skills to confidently lead teams and understand how insurer departments collaborate.
Awarded by The Institutes, the Chartered Property Casualty Underwriter is a professional certification for anyone who wants to become experts in risk management and insurance. Earning this title involves comprehensive coursework in insurance, risk management, and ethics, and the necessary exams.
CPCU professionals gain advanced skills and can join the CPCU Society for networking and further education, enhancing their careers.
The answer to this question depends on the individual. As discussed, the Chartered Property Casualty Underwriter is not an easy certification to obtain. This designation demands a significant investment in terms of effort, time, and of course, money.
As the CPCU involves taking comprehensive courses and passing difficult exams, anyone considering this professional credential should have a clear plan. Aspiring CPCUs would do well to map their possible career paths and look at potential employers like the top P&C insurance companies in the world.
Only those who have a career plan or trajectory in mind and are committed to the effort are advised to pursue the CPCU, to avoid wasting time, money, and energy.
Did you find this guide helpful in your decision on pursuing the Chartered Property Casualty Underwriter title? Let us know your thoughts in the comments
