What is Associate In Research And Planning (ARP)

Associate in research and planning (ARP) is professional certification for those who have completed the educational program on life and health insurance research and planning. The associate in research and planning certification is awarded by the Insurance Institute of America. It concentrates on market feasibility analysis for insurance companies, which includes loss projections and risk margins of expected and higher-than-expected levels of loss.

BREAKING DOWN Associate In Research And Planning (ARP)

Associate in research and planning consultants summarize financial statements, including worse-than-expected scenarios that demonstrate the possibility of serious financial loss or impairment. Analysis takes into account rates and rate structure, degree of capitalization and the level of confidence in the aggregate funding, which includes premiums and investment income. The associate In research and planning certification concentrates on market feasibility analysis for insurance companies, which includes loss projections and risk margins of expected and higher-than-expected levels of loss. 

Associate in research and planning consultants provide, for example, economic damages analysis for plaintiff counsel, insurance carriers and defense counsel. Associate in research and planning consultants can come from a variety of professional backgrounds, which can help aid their analysis capabilities. They can be economists, vocational evaluators, life care planners, forensic accountants and physicians. 

These professionals can also support the development and management of an insurance company's overall strategic and financial planning process. They also collect and organize information and data to perform quantitative and qualitative analyses and prepare presentations and templates to communicate strategic and financial plans to relevant parties.

ARP Certification as a Step to Becoming an Actuary

Demand for actuaries is expected to grow 22 percent between 2016 and 2026, much faster than the average for all occupations, and since a big part of an actuary's job involves research, it may make sense for someone who received certification as an associate in research and planning to use that training and experience to help them become an actuary. Actuaries use mathematics, statistics and financial theory to assess the risk of potential events, and they help businesses and clients develop policies that minimize the cost of that risk.

Although it may require additional training and experience, people who receive the associate in research and planning certification often have the right skill set to become actuaries because they understand the subject matter. Insurance companies, financial planners, and many multinational corporations are very reliant on the contributions of actuaries because they help provide a safeguard against financial catastrophe, and that benefits everyone – both employees in a company and the company's customers.