A conversation with the new CPCU Society president

AT THIS month's Annual Meeting & Seminars of the CPCU Society, in Nashville, Tenn., Betsey L. Brewer, CPCU, will begin a one-year term as the Society's president. Ms. Brewer, who has worked in insurance brokerage since the 1970s, is senior vice president and a partner in The Rule Company, in Pasadena, Calif. She also has been active in the Insurance Brokers and Agents of the West and the Los Angeles chapter of the Independent Insurance Agents & Brokers of America.

Recently we spoke with Ms. Brewer about her involvement with the Society, and how her background as a broker might be reflected in her year at its helm. Following is an edited transcript of our conversation.

AA&B: How did you become involved with the CPCU program?

Brewer: It was quite by accident. I started out in the industry as an accounts receivable clerk in a car dealership's insurance office. Then I worked for an insurance agency that had a couple of producers who were CPCUs, which acquainted me with the designation. After I moved to another agency, I met a woman who had started her CPCU studies and was enthusiastic about the program. “This is the one you do,” she told me. “This is one that people recognize as an accomplishment.” So I started with the management, accounting and finance class, since I was familiar with those subjects from college. This was back when the CPCU program had five parts. I received my designation in 1981.

AA&B: What did you find most beneficial about the program?

Brewer: Everything. First, I've always worked on the agency side and never for a carrier, so I learned a lot when I took the company operations class. The insurance law class also was helpful. In each job I've had, I've found the information I learned to be useful.

AA&B: How has being a member of the CPCU Society benefited you?

Brewer: Oh, that's very important. The Society has been my “Rolodex.”

AA&B: Could you explain?

Brewer: You get to know a lot of people in your local chapter-not only your competitors, but also underwriters and claims people, and they can be great resources. Our Los Angeles chapter is blessed to have a CPA and an attorney who are CPCUs, who I've called upon for information. At the national level, if you start attending the annual meetings and different regional seminars, you start meeting another group of people with whom to network.

These contacts can be extremely useful. For instance, a few years ago, I had a large account that obtained worker compensation insurance from Legion Insurance Co., which filed for bankruptcy. The client was having problems getting information from various state guaranty funds. Through my involvement in the Society, I knew the head of the Texas Property and Casualty Insurance Guaranty Association. I e-mailed him some questions and had answers for my client within 24 hours.

AA&B: Does The Rule Company encourage its employees to pursue the CPCU designation?

Brewer: Yes. We consider continuing education to be very important. All our account managers-and even our account assistants, whenever possible-attend continuing education classes, which we conduct in the office. We also encourage employees to pursue outside designations, like the CPCU, because doing so benefits them. The designation is something they can take with them throughout their careers.

AA&B: Does The Rule Company pay expenses for employees pursuing the CPCU designation?

Brewer: Yes. Because people sometimes drop a CPCU class and not tell anyone-which gets a little expensive-we ask employees taking classes to sign “promissory notes.” If they complete the class-not necessarily pass the national exam-the note is forgiven. But if they drop out, they have to reimburse us. We don't make passing the national exam a requirement, because if you fail it on your first try, you can sit for it again. Some people don't do well on tests, so we give them a couple of opportunities.

Employees have to study on their own time, but as we get close to the end of a semester, if we have a couple of people in classes, we offer to take lunch together and go through questions and problems. Or we might take a half-hour or an hour at the end of a workday and go over material. We want them to succeed.

AA&B: Is there a theme for your presidency, or for the year coming up?

Brewer: Yes. It's called “CPCU: Destination of Choice.” Next year's annual meeting, at which my term will end, will be held in Honolulu, obviously a “destination of choice.” But more to the point, the theme conveys that we choose to be CPCUs. We choose to give up our time to study, to take the tests and to participate in the Society. So being a CPCU is a “chosen” thing.

AA&B: As the Society's new president, what are your chief objectives?

Brewer: As a broker, I'm concerned about the quality of personnel we have available to hire, both for operations and perpetuation. We don't have a lot of people getting insurance degrees. There are not even that many universities offering them, especially on the West Coast. I'm concerned about having people properly educated and trained, so they will buy into and be part of the insurance business. It's a great business, after all. The world can't move without insurance.

So my main emphasis will be on candidate development, and encouraging people to start the CPCU program. We're telling people that obtaining the designation is not as hard as it looks. It's mainly a matter of deciding to devote the necessary time to it. You have to want to do that. I know an awful lot of people who have time for a game of golf, but they tell me they don't have time to study for the CPCU. Obviously golf is more fun, but maybe the CPCU program would be more valuable.

AA&B: How has the Society's membership been trending?

Brewer: The Society's membership is about 26,000, which is down slightly from its peak. We expect it to go back up next year, however.

AA&B: From people working for companies that send their employees to the annual meeting in the year they get their designations?

Brewer: Right. Everybody wants to go to Hawaii, so we'll have a lot of people finishing their programs next year.

AA&B: Does The Rule Company send its new CPCU designees to the annual convention?

Brewer: Yes, we pay for the trip to the annual meeting, for new designees and their spouses/significant others.

AA&B: As a broker, do you think you bring a different perspective to the job of CPCU president than somebody who works for an insurance company or other type of organization?

Brewer: Definitely. Agents and brokers have to keep pretty tight schedules. Our lives are connected to expiration lists and new-business goals. My employer loves me, but if I don't renew my accounts and bring in new business, there's a little love lost there. So I have a tight rein on my schedule, and I'm fairly well-organized. I don't like to waste people's time-mine or theirs. If I have something important to share with people, I like to do so quickly and succinctly, and not give them a novel.

AA&B: Are you going to be speaking to different groups, trying to encourage people outside of the CPCU Society to pursue the designation?

Brewer: Absolutely. I've already spoken to the Latin-American Agents Association at their June convention in Long Beach. We're also going to have people at the African-American Agents Association's national convention and are coordinating with the National Association of Insurance Women and agents' associations.

AA&B: Are you a member of one of the Society's interest sections?

Brewer: I am a member of both the Agent & Broker and Risk Management interest sections.

AA&B: Do you or the Society have any plans for these interest sections?

Brewer: We have a task force that's looking into the sections. They're assessing their value and determining how they might be opened up to other people within the Society-and possibly to people outside the Society. The sections have evolved a great deal in the last 15 years, and it's time to take another look at them. About 25% to 30% of the Society's members are members of sections.

AA&B: What do you like most about the CPCU Society? What do you see as its strengths?

Brewer: The people. I'm pretty much a people person, and I've met some absolutely brilliant people I would never have had the opportunity to meet without the Society. There are a lot of things you learn by interacting with people around the country that make you a better broker for your clients.

AA&B: How can the Society be improved?

Brewer: Sometimes the Society, like any organization, gets a bit rigid. I think sometimes the local chapters feel that. So one thing we've been working on is giving the chapters more leeway to do what is best for their members and to earn “points” toward various awards and recognition.