Does your college/university require at least a master-level degree related to the subject to be taught (in this case, risk management, insurance, finance, or management)? Most schools do, to protect their accreditation. Some smaller schools will make an exception for those with the CPCU, CLU, ARM, and other appropriate professional designations. Many professionals do not have a master-level degree.
It will be a challenge to rely on adjunct faculty exclusively to deliver major. A full-time faculty member is recommended for a RMI program that involves a RMI major, given the number of RMI classes, and the importance of advising a student organization. If the program is a concentration or specialty without a student organization, adjunct faculty would be able to cover the program. Evening classes may be necessary to attract good faculty that have full-time positions in the business.
Caution: many in the insurance business like to come into classrooms to teach on a part-time (some full-time) basis, but many tend to stand in front of the room and talk to the students about their experience and tell stories about the business, and never understand why the students never asked any questions or discussed the material. An adjunct faculty appointment is different than being a guest speaker in a class. Instructors need to prepare and incorporate class exercises, group exercises, case studies, and simulations to stimulate discussion and aid student learning. The faculty member must honestly assess and grade student performance to let the students know if they are prepared for the business, and to preserve the academic integrity of the program and the credibility of the degree that the students are seeking.
In addition to current business practices, the theory behind business practices will help students understand when it’s possible and when it makes good business sense to deviate from those business practices. Don’t accept that “the way it’s done now” is the only way it should be done. Give the students the tools to make it better in the future.
In addition to current business practices, the theory behind business practices will help students understand when it’s possible and when it makes good business sense to deviate from those business practices. Don’t accept that “the way it’s done now” is the only way it should be done. Give the students the tools to make it better in the future.
To give the greatest value to the students, an academic program should be balanced in the presentation of material and discussion of issues. It’s important to recognize that we all come from different experiences and segments of the business, and may have formed opinions regarding the way business is done. However, under different circumstances, different business practices may be appropriate, and we should give our students a balanced view of those practices. For example, some common biases that I’ve noticed from some industry speakers that should be avoided:
· Insurance Distribution system: Some have preferences for one approach over another (independent agents, exclusive agents, direct writing, and direct response – Internet, mail, phone). In the classroom, students should be exposed to all forms, and the advantages and disadvantages of each approach. And an accurate description of each!
· Public Adjusters: Many in the industry view all public adjusters akin to “ambulance chasers” who show up at the scene of a loss and scare the policyholder/claimant into hiring them to pursue their claim with the insurance company. There are business people that take inappropriate advantage of others in every field. To be fair to the students, it’s important to explain to students that sometimes policyholders involved in a complex claim may be aided by a public adjuster that can take the time to negotiate and supervise a complex claim. And sometimes some insurance companies may not be as responsive as they should be.
· Underwriting: The use of predictive analytics in the property-casualty underwriting decision-making process has been challenged by some seasoned underwriters that have been in the business a long time, feeling that a computer can’t replace their intuition. To their credit, many seasoned underwriters have recognized that predictive analytics are doing what underwriters have done with more data, accuracy, and speed, and have embraced good analytics that help streamline their work, allowing them to focus on the more complex cases.
· Life insurance products: Term life, whole life, and universal-variable products have different advantages and disadvantages that should be explained in a balanced presentation. Of course, past studies have shown that policyholders don’t always “invest the difference” when buying term insurance, but it is still a valid option for some.
The bottom-line: if they’re technically knowledgeable, strong communicators, technologically adept, and open to training in course preparation and delivery, adjunct faculty will contribute credibility to a program, and open a professional network to your students.
