The Truth About Designations
One of the questions I often get from people who are interested in pursuing a career in risk management: should I get designations? If so, which ones?
Here comes my very lawyer answer: It depends.
Full disclosure: I don’t have designations, and I’ve been in this field for over 20 years. At this point, I struggle with whether or not it makes sense for me to still get them. Plus, I don’t have an employer who will cover the costs. Years ago, I took a few courses from The Institutes, passed some tests, and decided I wasn’t interested in continuing because it was tough to pay out of pocket. In my opinion, the material was very, very dry, and I’m much more of a hands on learner.
Some organizations will pay for employees to get their designation, and if you work for such an organization then I say go for it! If someone else is covering the cost of education, you should always take them up on it. But keep in mind that some organizations will only provide a reimbursement benefit for said designations, so you will be responsible for fronting the costs. To take it a step further some organizations will only reimburse you if you pass the test, and may also have stipulations saying that if you use the education reimbursement benefit, you must remain employed with them for X amount of years after the reimbursement or else you will need to refund the reimbursement to the employer.
Most of the designations in our industry come from The Institutes, although there are other organizations, like Risk and Insurance Education Alliance. If you’re considering pursuing a designation, here are a few tips to keep in mind:
Cost
Look at the total cost. The site usually breaks down the cost per course, not for the whole designation. Make sure you do the math. For example, The Institutes lists both the course and exam fees separately, but the costs have a range: Exam Materials (usually consisting of the e-book and extras like access to online practice tests) range from $399-$419, and the Test Fee ranges from $259-$339.
Total costs for each course and test $658-$758.
You’ll need to consider the costs for all courses required in the designation in order to obtain the total cost for the designation. For example:
· Total cost for the ARM designation: Three Core Courses (3 courses total) $1,974-$2,274
· Total cost for the AINS designation: One Core Course, One Concentration Course, One Elective (3 courses total) $1,974-$2,274
· Total cost for the CPCU designation: Five Core Courses, Two Concentration Courses and One Elective (8 courses total) $5,264-$6,064
You also need to read the fine print:
Are there conditions to maintaining your designation?
Ongoing education requirements?
Dues/membership fees?
Is there a time limit to complete the full designation? This is important if you begin your designation, then take a break to come back to it later. If the clock starts ticking from the time you begin, then you need to make sure you complete all required courses in the designated time.
Are designations worth it?
One of the benefits often cited is the community and networking opportunities. For instance, I’ve heard amazing things about The CPCU Society. They have a variety of regional chapters as well as their own conference: In2Risk.
But what about the education itself? I always ask people with designations “what did you learn from the designation and how has it helped you perform your role better” and you would be surprised how many people tell me they just powered through the material so they could get the designation and add it to their resume and remain competitive on the job market. When I asked what they learned specifically, they often can’t tell me. They say it was all a blur. There were no “aha!” moments in the course material. They just needed to get those special letters.
And maybe, at the end of the day, that’s worth it for them. But I think education should be transformative. It should be full of aha! realizations. Education should be exciting! It shouldn’t be something you “power through” just to get to the end.
Will the designations help you get a job?
Maybe. Some roles will list a designation like ARM or CPCU as a requirement, and some may list it under the desired but not required category. The designation alone isn’t likely to land you a role. Most hiring managers want to know you have the experience, not just the credentials. So in short, the designation can certainly help your job search efforts, but it can’t do the heavy lifting by itself.
If you do decide to go down the designation route, here are a couple of tips:
Find a study group. There are tons of them out there. Chantal M Roberts, CPCU, AIC, RPA, ITP teaches CPCU courses. If you don’t already follow her on LinkedIn, you should. She makes the material interesting. For those who have taken a course from The Institutes before, you know that is not an easy task. If you’re looking for ARM options, The Risk Management Study Group is an online learning platform that can help you prepare for the ARM.
Actually take the time to study. This material is no joke. It is robust and thorough. If you are going to start this journey, be prepared to set aside the time to study. These are not the types of tests where you can just wing it.
Will I ever pursue designations?
Who knows? One day, I may change my mind and start collecting designations like so many other professionals in my field, but I already have a busy schedule between my day job, writing a book about risk management, making risk and insurance related TikToks, trying to finish season two of The Secret Lives of Mormon Wives and keeping squirrels out of my birdfeeders. My calendar is full.
If you decide to go this route, I’ll be cheering you on. And if you already have your designation, congrats! It’s hard work, and you should be proud!
