Insurance agencies regularly make consequential hiring decisions without an objective way to evaluate technical insurance knowledge. A resume documents where a candidate worked and how long the candidate held a position. An interview can reveal communication style, confidence, and personality. References may confirm employment history and professional relationships. None of those measures independently establishes whether a candidate can identify a coverage concern, analyze an account, apply policy language, or determine what information is missing.
Agency leaders already understand the cost of a poor hire. Many have experienced lost productivity, damaged client relationships, wasted compensation and training expense, disruption within the service team, and the difficult decision to begin the hiring process again. Those experiences can make the next hiring decision more difficult because the agency is still being asked to take a substantial risk with incomplete information.
When objective evidence is limited, hiring managers understandably rely on experience, interviews, references, personality, cultural fit, and instinct. Each can contribute useful information. The problem arises when those factors are treated as proof that a candidate possesses the technical competence required to sell or service commercial insurance.
The purpose of a technical insurance assessment is not to automate a hiring decision. It is to give human judgment better information.
What Agencies Commonly Measure
Producers and Account Managers are often evaluated using different measures. Those measures can be meaningful, but they usually describe past activity rather than the technical judgment behind the work.
Producer experience
An experienced Producer may be evaluated by the size of an existing book of business, production history, client relationships, prospect networks, the presence or absence of restrictive covenants, and the likelihood that business can be generated quickly enough to validate a draw. These facts matter. They help the agency evaluate financial potential and the candidate's ability to create relationships.
They do not necessarily reveal how much of the business the Producer personally originated, whether the current programs are technically sound, how heavily the Producer relies on the service team for coverage analysis, or whether the Producer can identify an exposure that has never been addressed. A large book can reflect excellent technical work and client stewardship. It can also contain accounts that have been renewed for years without a meaningful exposure review.
Account Manager experience
Account Managers, CSRs, and other service professionals may be evaluated by the size and complexity of the book they manage, the volume of daily activities they complete, their remarketing experience, carrier relationships, and familiarity with an agency management system. These measures can demonstrate capacity and practical experience.
They may not reveal whether renewals receive thoughtful coverage review, whether discrepancies are recognized, whether recommendations are documented, or whether a high activity count reflects efficiency or repeated correction of avoidable problems. Processing work and understanding the coverage implications of that work are related, but they are not identical.
Production history tells an agency what a Producer has sold. Activity history tells it what an Account Manager has processed. Neither necessarily reveals the technical judgment behind the work.
When Paper Folders Looked Like Productivity
Before our agency became completely paperless in 2003, our CSRs could point to client folders piled across their desks as visible evidence of how busy and productive they were. At the time, we were among a relatively small number of independent agencies making a complete transition to electronic account files and activity tracking.
Once the folders disappeared and activities were logged within the system, the work became more measurable. We discovered that visible activity did not always equal effective performance. Some employees had been furiously treading water simply to remain afloat. Others processed business efficiently, accurately, and consistently without producing the same appearance of constant crisis.
The folders had shown us who looked busy. The system helped us understand who was effective.
A resume can become the modern equivalent of those folders. It displays experience, responsibility, production, and activity. It cannot, by itself, reveal the quality of the decisions occurring behind the scenes.
The Risk Hidden in an Inherited Book
The hiring risk is not limited to mistakes a new employee might make. A new Producer or Account Manager may inherit years of prior decisions, incomplete documentation, outdated exposures, missing endorsements, inaccurate values, and unresolved coverage questions.
Sometimes the departing employee was exceptional. The agency then needs someone capable of preserving strong client relationships and maintaining a high standard of account stewardship. In other situations, performance problems existed long before the employee left, but the extent of those problems does not become apparent until someone else examines the accounts.
When a Producer leaves, the book may be divided among existing Producers or assigned to a new hire. That new Producer may be expected to protect and retain those relationships while simultaneously prospecting for new accounts and validating a draw. The inherited book may include carefully constructed programs and well-documented recommendations. It may also contain coverage decisions that no remaining employee can fully explain.
The incoming Producer must understand why each client purchased the existing program, determine whether operations have changed, coordinate with the service team, identify concerns, and decide what needs immediate attention. An impressive resume and a successful interview do not demonstrate how the candidate will handle that responsibility.
The service desk faces a parallel challenge. An Account Manager reviewing a new client file, renewal, remarketing submission, endorsement request, or Certificate of Insurance may be the last person positioned to recognize a material discrepancy before it becomes a client problem.
A new Producer may be hired to build tomorrow's book while simultaneously being entrusted with protecting yesterday's.
Technical Competence and E and O Exposure
No candidate assessment can guarantee that an employee will prevent an errors and omissions claim. Hiring decisions, account documentation, supervision, workflows, and agency procedures all affect professional liability exposure. A well-designed assessment can nevertheless provide meaningful evidence of whether a candidate recognizes coverage concerns, investigates inconsistencies, documents decisions, and understands when an issue requires escalation.
A technically capable candidate should recognize situations that deserve further inquiry, including inconsistent information across policies and applications, missing or outdated endorsements, inadequate property values, unidentified multistate Workers Compensation exposure, discrepancies among vehicles and drivers, or coverage requirements in a contract that the current program may not satisfy.
Technical competence is not limited to knowing the correct answer. It includes recognizing when a question needs to be asked.
What a Commercial Insurance Candidate Assessment Should Measure
A meaningful commercial insurance candidate assessment should evaluate more than terminology and memorized definitions. It should examine objective knowledge and the candidate's ability to apply that knowledge to realistic account conditions.
· Insurance principles and foundational commercial P and C concepts
· Commercial Auto, Commercial General Liability, Workers Compensation, Commercial Property, and Umbrella or Excess knowledge
· Policy language, exclusions, conditions, Additional Coverages, Coverage Extensions, and endorsements
· Recognition of coverage gaps, conflicting information, and incomplete account data
· Exposure discovery and investigative questioning
· Coordination among policies, carriers, and coverage layers
· Prioritization of new business and renewal concerns
· Documentation, communication, and escalation judgment
· The ability to translate technical analysis into practical recommendations
Why Multiple Choice Questions Are Only Part of the Answer
Properly constructed multiple-choice questions provide an objective measure of knowledge. Foundational questions can confirm whether a candidate understands essential insurance principles. Intermediate questions can require the candidate to distinguish between closely related coverage concepts. Advanced questions can test familiarity with policy provisions, endorsements, exclusions, and the interaction among different forms.
Multiple-choice questions cannot fully demonstrate how a candidate approaches an incomplete account. They do not show which follow-up questions the candidate would ask, which issue would receive immediate attention, or how the candidate would explain a recommendation to a client.
Written scenarios add that missing dimension. A scenario can require a candidate to review an account, identify red flags, request additional information, prioritize concerns, and recommend next steps. The response can reveal technical knowledge, but it can also reveal the candidate's reasoning process and practical judgment.
The Producer and Account Manager Require Different Perspectives
Producers and Account Managers share responsibility for protecting clients and the agency. Their technical knowledge overlaps, but they apply it from different positions.
Producer assessment
A Producer assessment should explore exposure discovery, coverage and program analysis, weaknesses in an existing insurance program, client recommendations, relationship transition, and coordination with the service team. It should also consider whether the candidate can protect an inherited book while developing new accounts.
Account Manager and CSR assessment
An Account Manager or CSR assessment should examine account review, remarketing preparation, policy checking, discrepancy recognition, Certificate of Insurance and Additional Insured requests, documentation, follow-up, and escalation. The candidate should demonstrate the ability to recognize when something in the account does not align with the insured's operations or contractual obligations.
The roles overlap because they serve the same insured and protect the same agency. The assessment should account for the different responsibilities and perspectives rather than forcing both candidates through one generic test.
Assessment Should Support Human Review
An assessment result should not direct an agency to hire or reject a candidate. A raw percentage also provides an incomplete picture. The hiring manager should be able to review objective knowledge results separately from written responses and see the candidate's actual reasoning.
A useful report can identify demonstrated concepts, areas suitable for further interview exploration, time spent on different parts of the assessment, and questions that may help the reviewer understand the candidate's thinking. The hiring manager remains responsible for considering the complete record, including experience, communication, references, cultural fit, technical knowledge, and the demands of the specific position.
This approach does not eliminate judgment. It makes that judgment more informed and gives the interview team better questions to ask.
Candidate Assessment and Team Development
The same methodology can be used beyond hiring. An agency can assess existing Producers, Account Managers, CSRs, and other commercial lines professionals to establish a technical knowledge baseline. Results can identify individual development needs and recurring gaps across a team.
That information can then guide targeted, instructor-led commercial insurance training. Instead of selecting a generic course and hoping it addresses the right issues, the agency can focus training on the coverage concepts, policy provisions, and practical applications its employees need most.
Professional Insurance Foundation is developing technical commercial insurance assessments that combine difficulty-calibrated multiple-choice questions with realistic written scenarios. Separate pathways reflect the responsibilities of Producers and Account Managers or CSRs. The resulting reports are designed to support professional review and informed discussion, not to replace the agency's judgment.
Before transferring responsibility for a client relationship or a book of business, an agency deserves more than a resume, an interview, and a gut feeling. It deserves meaningful evidence of what the candidate knows and how that knowledge is applied.
Frequently Asked Questions
What is a technical insurance knowledge assessment
A technical insurance knowledge assessment evaluates a candidate's understanding of insurance principles, coverage forms, exclusions, conditions, endorsements, and practical account application. It differs from a personality, behavioral, sales aptitude, or general employment assessment.
How can an agency evaluate an experienced insurance candidate
An agency can combine structured interviews, verified employment and production history, references, objective technical questions, and realistic written scenarios. The assessment should supplement the agency's professional judgment rather than determine the hiring decision automatically.
What should a Commercial Lines Account Manager assessment measure
It should measure coverage knowledge, account-review ability, discrepancy recognition, remarketing judgment, documentation, Certificate of Insurance and endorsement analysis, follow-up, and escalation. It should also examine whether the candidate recognizes missing information and unresolved exposures.
What should a commercial insurance Producer assessment measure
It should measure exposure discovery, program analysis, policy coordination, coverage recommendations, client communication, inherited-book review, and the ability to identify weaknesses in an existing insurance program while pursuing new business.
Can an insurance assessment prevent E and O claims
No assessment can guarantee that an agency will avoid an errors and omissions claim. A technical assessment can provide evidence of whether a candidate identifies coverage concerns, investigates inconsistencies, documents decisions, and recognizes when an issue requires escalation.
About the Author
Erik Leeming is the founder of Professional Insurance Foundation and creator of Know The Policy. He develops and delivers customized, instructor-led commercial property and casualty insurance education grounded in policy language, coverage analysis, and realistic account and claim scenarios. His work focuses on helping insurance professionals understand how coverage operates and apply that knowledge to the decisions they make for clients.
