18 Mar Insurance Education as E&O Loss Control
I have been involved in insurance education for almost 40 years. Back in the 80s, I used to offer insurance training courses and would have great attendance because agents wanted to learn the information the courses offered. This all changed in the early 90s with the advent of insurance continuing education (CE) laws. Now, all licensed agents had to comply with CE requirements. I think the worst thing that ever happened to insurance education was the passage of CE laws. Agents are no longer interested in taking courses to attain knowledge but rather to satisfy their CE requirements.
Many agents wait until the last minute and then scramble to find courses to comply with the law. I have had life and health agents in P&C classes and commercial lines agents in personal lines classes. Gotta get those hours, baby!
I conducted a focus group of personal lines CSRs and asked, “Where do you get your CE hours?” Almost 90% responded they got their hours from glass and water damage companies and free carrier seminars. Why? Free CE, free donuts, and free lunch. This concept is very appealing to agency owners. Unfortunately, I don’t believe this type of course continues education.
A lot has changed in our industry since I started in the business in 1973. Laws have changed, exposures have become more complex, and insurance policies have become more technically difficult. The need for quality education is more important than ever before, not just for knowledge but for E&O loss prevention.
I believe we should take courses that apply to our specific specialty. Why take a homeowner course when you work with employee benefits? There are designations and special courses for almost every area of our business. Organizations like the Risk and Insurance Education Alliance (CIC, CISR, CRM), International Risk Management Institute (CRIS, AFIS, MLIS), Institutes Knowledge Group (CPCU, AAI, ARM), and International Society of Certified Employee Benefits Specialists offer wonderful designation programs.
One caution when attaining insurance designations is that we are supposed to apply the knowledge gained in our designation programs. I was involved in an E&O case in the 80s, and the plaintiff’s attorney spent a lot of time having me explain my designations. Why? He was trying to raise my standard of care by saying I held myself out as an insurance consultant and, therefore, had a “special relationship” with my client. Are you a Certified Insurance Counselor, Accredited Advisor in Insurance, or Associate in Risk Management? If so, are you holding yourself out as a professional advisor rather than an insurance agent? Did you create a duty to advise your clients about coverage and limits?
If you are a department manager, help your employees develop an insurance education career path. Ask them what they feel they need to learn. If they need training in a specific area, help them choose courses to get that training. Review the courses they plan to take to discuss the appropriateness of the course. After they take a course, ask them to explain one thing they learned that they can apply to their job. Make sure they are taking courses that are appropriate for their experience level. Don’t sign them up for a CIC if they’ve only been in the business for six months, but also don’t let them take an entry-level course when they’ve been in the business for five years. Apply all of this to your education plans and needs.
Let’s stop taking courses just to get CE hours and start taking courses that continue our education. We will never know everything there is to know about this business.