Structural Change in the Cpcu Curriculum and Its Effect on the Completion Time

ABSTRACT This study investigates the impact of structural change of CPCU program's curriculum on candidates (students) completion time. The CPCU professional certification is the most recognized system in the area of property/casualty insurance, which provides a comprehensive, integrated, skill and knowledge set in all areas of property/casualty insurance. American Institute for CPCU has changed their curriculum program in 2003; first, they have deleted two redundant courses from the program, second, provided students with two different options to choose from on elective courses. Data collected for this study include 1782 candidates who completed their program beginning 1999 to 2006. After controlling for age, gender, and education level, we find that structural change in 2003 is instrumental in shortening the length of program completion time. Results indicate that the predictive power of structural change in the curriculum to be contingent on the level of education and gender. Candidates with higher level of education, as measured by their highest degree earned, achieved significantly better performance. Findings of this study have important implications on curriculum change for any certification or degree program. Despite the differences among candidates education level, academic performance is impacted by structural change in the program curriculum. The relationship between gender-based increases in candidate's academic performance appears significant in this study. These findings are consistent with the hypothesis that efficient curriculum structure combined with education level enhances the shortening process of program completion time. INTRODUCTION The system of CPCU (Chartered Property and Casualty Underwriter) professional examinations and certification is the most recognized system in the area of property/casualty insurance, which provides comprehensive integrated, skill and knowledge set in all areas of property/casualty insurance. As with professional designations in other fields, such as the CPA in accounting, the CPCU is awarded to individuals willing to go beyond the normal requirements of their profession. The American Institute for Chartered Property and Casualty Underwriters (AICPCU) confers the CPCU designation. Traditionally, the CPCU designation was earned through the successful completion of ten college-level courses with national essay examinations, an experience requirement, and an agreement to be bound by ethical standards. Curriculum includes risk management, insurance products, insurance operations, financial analysis, and legal and regulatory environment of insurance. Each course is accredited by the American Council on Education (ACE) for at least 3 college undergraduate credits and some for 3 graduate credits. The certification helps practitioners to make sound, ethical decisions in the complex environment of property and casualty insurance. During 2003, the CPCU curriculum was changed to enable students to complete the program by successfully completing 8 of 1 1 possible courses in the program. Thus an 8- part program is tantamount to completing about 24 hours of college credits (per ACE). The CPCU designation is conferred solely by the American Institute for CPCU of Malvern, Pa. In this research, we look at the changes in their program and how these changes affect CPCU program, as well as the length of completion time for certification. The CPCU designation has been historically offered mostly in the United States, with the authence for it being the professionals within the property/casualty industry. The property/casualty industry in the United States operates in a regulated environment, and within the evolving American culture, consumer markets, and labor force. Thus factors such as, overall educational trends, demographic, litigation, and consumerism influence the insurance industry. Therefore, the need for educated professionals, and ultimately the desire and ability of insurance industry people to seek and attain CPCU certifications for diverse knowledge to keep up with the dynamic change in the environment. …