I consider myself to be a professionalinsurance agent. But by what standards do I consider myselfprofessional? As a property-casualty insurance agent, I have noreal industry standards to measure my professionalism. Of course,there are legal standards I must conform to, but is there a “codeof practice” with which I must comply? Other than individual staterequirements for licensing and continuing education, I know ofnone.

Do we need to become professional? Do we need to have a“standard of care” which is uniform throughout theU.S.? I believe we do. When I testify in a deposition as anexpert witness defending an insurance agent in anerrors or omissions claim, the first question I am asked by theplaintiff's attorney is, “What is the standard of care that isowed?”

While I believe the “standard of care” depends on the education,training and experience of the agent providing the coverage, manyattorneys and consumers think all insurance companies, insuranceagencies and insurance policies are the same. This perception is aproblem for our industry.

I propose we create enforceable professionalstandards for insurance agents based on generally acceptedand recognized insurance programs designed for various businessesor individuals in order to bring our profession to the nextlevel.

Many professions have banded together to hold themselvesaccountable to professional standards. These standards areunderstood by the public at large and maintained by the professionsthemselves. Examples include certified publicaccountants, the medical profession,lawyers and architects, just toname a few. It is time the property and casualty insurance businessdid the same.

Read related: “Create your ideal agent education program.”

For example, let's examine the accounting industry and use it asa model for our business. First, people who wishto become Certified Public Accountants (CPA) must meet minimumrequirements. These include having a BS or BA from an accreditedcollege or university, passing a national exam and serving anapprenticeship. Second, so as not to eliminate competition in thepublic accounting arena, anyone can hang a shingle and do publicaccounting work. However, only CPAs can sign their names to a“reviewed” or “audited” financial statement. The public recognizesthe difference in the level of professionalism between CPAs andnon-CPAs within the accounting industry. And the public is willingto pay for a CPA's professionalism because the public knows that aCPA is a true professional within the accountingindustry.

Using these similarities, I believe a model that closely followsthe accounting industry would work in the insurance industry aswell. We should establish two types of sellers, “insurance agents”and “Certified Insurance Agents.” A “Certified Insurance Agent”would be able to sign a “reviewed” or “audited” insurance program,based on the insurance industry's version of “generallyaccepted insurance standards” for that particular individual,business or SIC code.

To become a Certified Insurance Agent, a practitioner would haveto meet minimum entry requirements such as aobtaining a BS or BA degree, passing a national exam and serving anapprenticeship. Generally Accepted Insurance Program(GAIP) Standards and a national code of ethics must beestablished and adhered to through a peer review process. Not allagents will want to become “certified,” and any insurance agentshould be able to sell insurance products under today's existingrules and regulations.

Read related: “Agents: Are you smarter than a plumber?”

There are many problems must be resolved before we could launcha program like the one described above. It took the accountingprofession more than 30 years before all states agreed and nationalstandards were set. But these problems can be solved. In doing so,we will elevate the level of professionalism required to serve theincreasing demands of insureds. Concurrently, we also will enhanceour reputation and move the entire property-casualty industry intothe next level of professionalism.