Educational Evolution

The Insurance Institute of Canada (IIC) could almost be celebrating its 70th anniversary, as it was in 1932 the idea of a national education foundation was first broached. But obstacles of the day, including World War II, intervened and it was not until 1952 when four local chapters and industry leaders put the institute in motion.

TIMES CHANGE

The institute has come a long way from its early beginnings, although its mandate of providing accessible, affordable and recognized professional development has not changed. “As the industry has changed, so too has the institute changed. Today we are very much focussed on providing products to meet the needs of individuals and the business community.” says IIC president and CEO Peter Hohman.

Part of this strategy involves the use of more skills-based or competency-based learning, such as workshops on topics including accident benefits claim negotiation. This is the kind of “pure training” the industry is asking for from its professionals. “We’ve seen incredible demand for the skills-based/competency type of learning,” Hohman says. The institute is now building this into its formal programs. “I would expect over the next couple of years bringing in courses more suited to competency-based rather than theoretical learning.”

Other industry needs the institute has come to meet are licensing products and “soft skills” training. The association’s designations, the “Chartered Insurance Professional” (CIP) and “Fellowship” (FCIP), have also been restructured. Making the two levels more separate and placing FCIP at universities is a means of adding value to those who choose to move to the higher level designation. The course style has changed, with the introduction of texts, distance learning and the involvement of community colleges offering night school learning. Even with the availability of online learning, these college courses remain the most popular way of learning, with about 75% of the IIC’s 15,000 students accessing courses this way, Hohman notes.

Notably, the institute used to have just one correspondence session per year, but now has three sessions. The original four local institutes have now grown to 22 nationally and provide a means of delivering courses to students across the country, and the institute’s Toronto campus is yet another popular site. As well, on-site education at the employer’s offices is a new vehicle gaining popularity.

And, in the past few years, the institute has devoted resources to bringing online education to its members. As the industry grows in its use of technology, the institute is keeping pace. “For a number of years we heard of the promise of technology to enhance efficiencies, internally and in business with customers, we’re finally at the stage where we’re seeing this come to fruition.” Online learning and web-based services allow the institute to meet its mandate of reaching students wherever they are located. “Any of our members can complete their entire transaction with the institute from their desktop except for writing the exam,” Hohman points out. This goes from registration through the courses themselves to checking marks.

SUCCESS STORIES

Among Hohman’s proudest achievements during his tenure is the institute’s launch of the CIP Society in 1998. The society takes its lead from the Society of Fellows, which was formed by graduates in the early 1960s and spread across the country. Many Society of Fellows members make up the CIP Society’s body of 10,000. “The [CIP] Society is a huge success story” and a “wonderful vehicle” for graduates to network, continue to pursue educational goals and access institute resources suited to their high level of experience.

Another success story is the global recognition of IIC standards. The institute has worked with its U.K. and U.S. counterparts to form the Institute for Global Insurance Education. “These are the three most senior institutes in the world and certainly play a lead role in developing programs on an international basis.” Part of the impetus is to ensure that, with the increasingly global nature of the insurance industry, IIC graduates can transport their credits to whatever country they may move to. “Our graduates receive credits towards their [other countries’] programs. They don’t have to repeat studies when they change locations with an employer.”

MEETING CHALLENGES

There have been struggles along the institute’s 50-year history, the first being the lack of technical insurance material available in Canada. “You can’t go to a Pitman or some other publisher and just get insurance texts.” The IIC now has 25 texts, written by industry experts recruited by task forces set up to identify subject areas an create curriculum.

And, keeping up with the geographical diversity and ever-changing status of the auto product is another hurdle. Not only is the product different in each province, but legislation changes necessitate a “rigorous” updating process, with most IIC courses and texts having a two-year shelf life.

The institute has also weathered to competition from private providers stepping into insurance education. Hohman says these programs often mimic those available through the IIC or broker associations, but are more costly and not necessarily as satisfying for participants. “People have been disappointed by what they’ve seen at these seminars. Now they’re saying let’s take out limited education dollars and spend them within the industry.”

But, perhaps the biggest challenge facing the institute, and indeed the industry at large, is trying to encourage people to choose insurance as a career. “Historically, people find their way into this industry more by ‘happenstance’ than design.” But the institute is working with high schools to introduce insurance as a career choice to students. “It seems in many provinces that the industry is really facing a shortage in attracting bright young professionals. Having said that, I think we’ve advanced farther than people think.” Hohman sites the creation of several university “chairs of insurance” as well as community college programs in insurance as indicators of the success the industry is having in making insurance a true “profession”. “Virtually all of those programs have a 100% placement rate,” he adds. He sees these programs becoming even more popular now in light of the dot.com meltdown and the current lack of luster in other financial services.

Hohman points to at least two reasons for the institute’s success – its volunteer instructors and the IIC staff. In 1952, the institute was run by one part-time manager and volunteers, but now boasts a strong staff who Hohman calls the “backbone” of the institute. The IIC’s instructors are industry experts, and he says, “they do this because they enjoy giving back to those coming up behind them in the industry.”

LOOKING AHEAD

Rather than using this year to reflect on the past, Hohman has his sights set on several goals for the future. On major thrust is to “grow awareness of individuals holding that [CIP] designation”, not only within the industry, but to the public at large. The IIC is involved in an ad campaign to educate the public on the CIP and its value. “It’s not about promoting the institute, it’s about promoting the graduates…the message is, the industry really is managed by professionals and CIPs and FCIPs bring added value to the insurance experience for consumers.”

The IIC also wants to broaden awareness of graduates within the larger financial services community, and to expand course offerings beyond property and casualty insurance. With the “pillars” of financial services crumbling, the institute wants to ensure that graduates are prepared to meet the demands of a more consolidated financial services industry. More skills-based training will be offered and testing will likely reflect this change in the future as well, where students will be judged not just on theoretical knowledge but on the ability to use that knowledge in practice.

The institute will also continue to work with other industry associations – including broker associations and the Canadian Independent Adjusters Association – to meet changing professional requirements. With the Insurance Brokers Association of Canada’s new CPIB designation in full swing, Hohman hopes that brokers will also see the CIP or FCIP as the next goal after graduating the new program. And, with the introduction of continuing education requirements, such as those for Alberta’s brokers, the IIC may have increased opportunities. Hohman hopes, however, that students will approach their insurance education with more than the goal of meeting minimum standards, but in the pursuit of professional excellence. “It ought to be more than satisfying legislative requirements. If they’re going to commit money and time, they need to make sure they’re getting good value.”