In the two decades since the Under Forty Organization was founded, efforts to advance the recruitment, retention and professional development of up-and-coming professionals within our industry have only increased. There is no shortage of statistics pointing to a talent gap as boomers retire and Gen X and millennials move into leadership roles. Thanks to efforts by the Under Forty Organization and other young professionals groups within the industry, the opportunities are greater than ever.

Recruiting challenges facing the industry

The biggest challenge now facing the insurance industry is an old one: recruiting and retaining personnel.

According to the Institutes, the insurance industry will need to fill about 70,000 positions this year and another 70,000 in 2017 just to replace the professionals retiring from those positions. Compounding this problem is a general unawareness of the modernization of the insurance industry. The industry is struggling in its message. Today's high school and college students aren't aware of the scope of the insurance industry beyond health care, auto and homeowners' insurance.

To build this next generation of leaders, we can and should look outside the boundaries of traditional insurance recruitment. We need to recruit engineers, technologists, information science professionals, educators and others who will make up the growing expanse of needed skills within our industry. Many of today's high school and college students are graduating with a higher degree of proficiency in digital technology than prior generations, and that knowledge will help grow the insurance industry.

We have to meet today's young professionals where they are. By using social media as one tool in the recruiting and talent development tool kit, we can better introduce an entire generation to the industry by sharing personal stories, testimonials and highlighting the young professionals who are already working in insurance to fundamentally advance the profession.

Mentoring programs, at the high school and college level, are central to this recruitment and retention mission. Many of the trade associations, including AAMGA, have undertaken serious and focused mentoring programs to identify these emerging professionals, such as AAMGA's University Foundation that funds wholesale insurance graduate study programs. But we need to do more. The sooner we can introduce future generations to the varied opportunities within insurance, the sooner we can meet our recruitment challenges.

Another challenge the industry has yet to overcome is communicating the value of what we do and expanding public perception beyond stereotypes. In order to better recruit students and career-switching professionals to the profession, we have to do a better job of educating the public about the real-world impact of insurance.

We need to convey to the next generation of insurance leaders that this profession offers stability, advancement opportunities and the chance to make a meaningful difference by providing security and protection — whether that is protection against age-old perils like hurricanes and fire or modern threats like cyber attacks and drones.

We have to communicate the practical benefits insurance provides for small business start-ups, independent contractors working in high-risk environments, technology entrepreneurs and individuals who, at the worst moments of their lives, are in some way rescued by those working within the insurance profession. There are countless stories about the good things happening within insurance, which can introduce a whole new generation to the benefits of working in this industry.

Related: 8 insurance sales tips especially for millennial producers

Mentoring programs at the high school and college level are central to the insurance industry's recruitment and retention mission. (Photo: iStock)

Value proposition

Communicating the value of the insurance industry is vital, not just to industry recruits, but insureds as well. And that value, like it or not, is under question. Whether the threat is from big names such as Amazon and Google, or new players such as Lemonade and Augury, the rise of insurance tech companies is creating increased competition as a new generation of insureds looks for options online and via various apps. What this means is the insurance of tomorrow will resemble little of the insurance of your grandfather's generation, and those leading the industry today will either have to adapt or be left behind.

The upshot of all of this is that through recruiting and retaining young professionals, today's industry leaders will also better understand what the millennial generation — the largest generation of Americans to-date — are looking to experience when exploring insurance options either for their businesses or their personal lives.

Culture clash

While we don't have to throw out all that we've learned and institutionalized as a profession, we do need to recognize that the next generation of insurance leadership sees the world through a different lens. In particular, millennials have demonstrated a willingness to forgo compensation or perks in exchange for a more generous work/life balance as well as the chance to support and participate in causes for social good as part of their jobs. This presents the industry with opportunities.

One area where the industry has traditionally led — and continues to lead — is in training. By providing tomorrow's professionals the opportunity to learn, and subsequently advance, we can improve recruitment. However, we must recognize today's young professionals want to understand the industry from a holistic perspective. This means many of them will want the opportunity to shift into various roles and practices, learning the business from different angles.

This upcoming generation is also in search of advancement. Unlike their predecessors, they are unlikely to wait 10 or even five years for a promotion. They'll want to move up in three years or less. To meet them where they are, we'll have to examine our organizational structure and create opportunities for them to advance while also challenging them to take on greater responsibilities. There is a good deal of synergy here in terms of this next generation's desire to explore varied professional roles and their desire for advancement. 

Looking back over several decades of supporting future generations of insurance leadership, much has changed and much has remained the same. The difference, as I see it, is that there is more opportunity now than at any time in recent memory. We have the largest (and some might argue the best-educated) generation of Americans in history, primed to meet today's talent gap. If we can expand our thinking around recruitment and development and better communicate what we do and the value our work offers, there is no limit to what this next generation of insurance leaders can accomplish.

Thomas Rogan led MacNeill Group from 1989 to 2001 and was president of the American Association of Managing General Agents in 1991 when he founded the AAMGA's Under Forty Organization. Rogan presently is an insurance consultant in Fort Lauderdale, Florida.

Related: Why mentoring is critical