This classification is unique in the insurance industry, as it is not often seen in other business sectors. As the insurance companies would rather offer policies to their clients through a CPCU than hire an agent, the CPCU is generally referred to as the insurance broker of choice.
In most instances, insurance brokers are employed by large insurance firms, which employ them to sell their policies. However, many insurance brokers also provide their services to smaller insurance companies. These small companies, however, do not usually have insurance departments, so they have to hire a CPCU to act as their agent.
Insurance brokers are tasked with selling insurance policies to clients. However, in today’s times, most insurance companies prefer to use CPCUs to sell their policies.
Most CPCUs specialize in one type of insurance, such as commercial properties insurance or automobile insurance. They also sell a wide variety of types of policies under the umbrella of this insurance category, which include health care policies, life insurance policies, travel insurance policies, and casualty insurance policies. Other categories are also available, such as insurance policies for personal injury, property, and business.
CPCUs are licensed professionals, and therefore they need to meet stringent requirements in order to receive the insurance designation. They must also be registered under the Code of Ethics of the National Association of Insurance Commissioners (NAIC). A good CPCU must be a member of the NAIC. In addition, they must pass rigorous pre-employment screening processes conducted by the state or federal agencies that regulate insurance professionals.
CPCUs are generally categorized into three groups: Insurance Specialists or Standard-Functional; Insurance Specialists or Functional; and Independent Insurance Specialists. Independents.
The insurance specialists are specialized in their work, as they are licensed and bonded. to practice in the insurance industry. Most of them are employed by large insurance companies, which pay them based on the number of policies sold by them, and they usually have the same rates for the same coverage.
Insurance Specialists generally specialize in a particular form of insurance, such as commercial properties insurance or auto insurance. Insurance Specialists usually provide their services to a large number of clients.
Insurance Specialists also provide some of the services that are commonly known as independent service providers. For example, they can conduct background checks and financial analysis of clients and advise their clients on financial matters such as risk management, investment, and insurance contract renewal.
Independent Service Providers. Independent Service Providers, on the other hand, are hired by independent insurance companies to perform independent services, such as filing insurance claims, conducting investigations, and providing advice to clients. Independent Service Providers typically engages in independent activities, such as insurance claims processing, etc., for a few companies or brokers.
Independent Service Providers typically hires their own agents and investigators. Independent Service Providers, in turn, typically engages in independent research and analyses on a client’s insurance needs. Independent Service Providers typically provides services to a limited number of clients.
While some Insurance Brokers provide specialized services, some Insurance Brokers provide independent service services. For example, independent service providers may provide independent analysis of insurance contract negotiations, research on a client’s insurance needs, and advice on the types of contracts and coverage options that will work best for the client’s needs.