ARM™ Designation – Associate in Risk Management
The ARM™ Designation or Associate in Risk Management is one of the premier insurance designations of the property casualty insurance industry. This insurance designation is held distinguished employees of the insurance industry including risk managers, risk officers, risk advisers, insurance agents, brokers, and underwriters.
The Associate in Risk Management Designation (ARM™) focuses on all aspects of risk management. This designation covers a wide array of insurance topics including risk management, risk assessment, and risk treatment.
The ARM™ Designation is of the many insurance designations administered by the Insurance Institute of America. The ARM™™ teaches you the science of risk management and provides you with the necessary skills and understanding to avoid, reduce, and manage risk.
Unlike some of the longer insurance designations, the ARM™™ designation is only three exams focusing on topics such as risk management principles, risk assessment, and risk financing.
Who Should Pursue the ARM™ Designation
This unique designation should be pursued by those interested in entering the risk management industry, property casualty industry, and by those currently employed in the property casualty industry who would like to advance their current knowledge and improve upon their current career position.
Although I recommend the ARM™ designation should be pursued by everyone in the insurance industry, the designation is most popular for the following careers:
- Risk managers
- Risk advisers
- Risk consultants
- Chief risk officers
- Risk management analysts
- Product analysts
- Product managers
- Claim managers
- Claim representatives
- School board executives
The ARM™ designation is highly respected in the insurance world and can help anyone in the risk management or property-casualty field gain the necessary skills and experience to reach that next level of employment while at the same time helping to build a more knowledgeable insurance and risk management industry.
How to Earn the ARM™ Designation
The ARM™ designation is achieved after the completion of a series of three exams and an ethics requirement course.
The exams include: Risk Management Principles, Risk Assessment and Treatment, and Risk Financing. These exams cover a wide array of topics and advanced subjects used in our day to day jobs such as risk management, risk assessment, risk management applications, analyzing risk, reducing risk, and much more
Each exam is multiple choice with a pass fail grade of 70%. You must score a 70% or higher on each exam to pass. Exams are administered and taken at any Prometric testing center. After passing each ARM™ exam, you will earn your ARM™ designation.
The ARM™ designation also offers two additional designation options:
- ARM-P designation – this is an ARM™ designation with a focus in the public sector. To earn the ARM-P designation you must pass all three ARM™ exams plus one additional exam (the RMPE™ 352)
- ARM-E designation – this is an ARM™ designation with a focus in enterprise risk management. To earn the ARM-E designation you must pass all three ARM™ exams plus one additional exam (the ERM™ 57)
For more information, see our blog detailing how to earn the ARM™ Certification.
ARM™ Designation Exams
The ARM™ designation is achieved after the completion of a series of three exams:
- ARM™ 400 – this exam covers the topics of general risk management principles.
- ARM™ 401 – this exam covers the topics of treating and assessing risk.
- ARM™ 402 – this exam covers the topics of financing risk.
To earn the ARM-P Designation, you must pass all three ARM™ exams and the RMPE™ 352 exam.
The RMPE™ 352 exam covers the topics of risk management, specifically risk management for a public entity.
To earn the ARM-E Designation, you must pass all three ARM™ exams and the ERM™ 57 exam.
The ERM™ 57 exam covers the topics of enterprise risk management.
For more information, see our blog breaking down the Associate in Risk Management Designation.
How Long To Earn ARM™ Designation
The ARM™ exams are TOUGH. It is no easy task to complete this insurance designation, which is why only the best of the best earn their ARM™.
The industry recommends about 2-3 months of studying per exam and about 1 – 1.5 years to complete the coursework and earn the ARM™ designation.
Although that’s the industry recommended time, I see most people complete their exams in about a month. If you’re truly dedicated you can crank out your ARM™ within six months. I always recommend that people study an hour a day on lunch break or before work. Just an hour a day for 2-3 weeks should be plenty of time for you to pass your exam.
Be sure to check with your employer before you get started, as most employers will pay for your study material and exams.
ARM™ Designation Costs
The cost of the ARM™ designation varies widely depending on your choice of study material and exam registration. On average, the ARM™ will cost between $1,800 to $2,200.
Each exam costs about $320 and study material ranges between $250 to $400 per exam.
It’s pricey, but there are plenty of tips and tricks to reduce the cost of your ARM™ including using college credits, waiving an ARM™ exam using college credit, and employer reimbursement (most employers will pay for your ARM™).
Where to Buy ARM™ Study Material
There are a number of great resources across the web that sell ARM™ study material. There is no right or wrong choice; it really depends on your study preference.
Personally, I prefer the below study material from AB Training Center. This is what I use, it does a great job breaking down the materials into the most important topics in simple notes (about 6 pages per chapter) so I could easily memorize the content. It also includes an “educational objectives” section at the end that reflected a lot of the questions on the exam and a full practice exam at the end. Comes with a print book, digital book, and audio book:
For a taste of ARM™ study material, check out our free ARM™ practice exams.
How to Sign Up For The ARM™ Exam
The ARM™ designation is administered by the American Institute for Chartered Property Casualty Underwriters (“The Institutes”). To sign up for your ARM™ exam, you will need to create an account at The Institutes. Here you can choose to take a written exam or you can sign up to take a computer-administered exam at a Prometric testing center
Please note, AssociatePI is not affiliated with The Institutes. AssociatePI is an independent company that is not endorsed by or otherwise supported or recognized by The Institutes in any way. This blog is intended for informational purposes only, to help you register for your conferment ceremony.
Free Practice Exam
Ready to get started studying? We’re here to help (for free). Download one of our free ARM™ practice exams to get a feel for the type of content you will be studying.
For more information about the ARM™ designation checkout some of our other free resources:
- ARM™ Designation Overview
- How To Earn Your ARM™ Certification
- What is the Associate in Risk Management Designation?
- Three Reasons To Pursue ARM™ Insurance Designation
- ARM™ 400 Difficulty
- ARM™ 401 Difficulty
- ARM™ 402 Difficulty
ARM™ exams are administered by the American Institute for Chartered Property Casualty Underwriters (“The Institutes”). AssociatePI does not administer the actual exams, we are an independent resource of free content, advice, and study material for professional insurance education. This blog is intended for informational purposes only, to inform prospective students of the benefit of the ARM™ designation.
ARM™, CPCU®, and API™ are trademarks of the American Institute for Chartered Property Casualty Underwriters (“The Institutes”). AssociatePI LLC is not affiliated with, associated with, endorsed by or otherwise supported or recognized by The Institutes in any way. AssociatePI LLC is not authorized by The Institutes to offer courses, practice examinations, or any other resources related to the Institutes’ designations or other programs.