4 best practices to make insurance appealing as a career

The insurance industry continues to face a crisis and this one is not due to the deluge of recent hurricanes affecting the Southeast or devastating wildfires out West. What the insurance industry faces — from large corporation to Main Street independent agent — is a talent drought.

As with most industries, property & casualty insurers are dealing with huge numbers of professionals leaving the workforce as they reach retirement age and job descriptions evolving with technology. Fueling the problem is attrition. A 2010 report from McKinsey & Company found that the number of workers in the insurance industry over age 55 increased 75% during the previous decade – leaving 20% of the insurance workforce approaching retirement. Meanwhile, the report also found that those graduating from risk management and insurance programs met only 10% to 15% of the industry's need. And the situation has only gotten worse.

Moving into 2018, we are at a critical point. The excessive number of people retiring from the industry coupled with a low number of young people signing on to insurance as a career presents a great risk for each organization in the industry — big or small.

What can independent agents, in particular, do to combat the looming talent drought?

Let's admit it: We have an issue

In some ways, we, as an industry brought this problem on ourselves. The industry neglected to focus on attracting talent and educating the next generation about the benefits of an insurance career. Now, we're facing a deficit of qualified or even interested candidates. In order to attract younger candidates to the field of insurance, the industry — known in many circles for its drabness — must change with the times.

In its report, McKinsey blamed three realities for the insurance industry's lack of appeal to the younger generation: "a poor reputation, a dim awareness and understanding of career opportunities among high school and college students, and a shortfall of trained students produced by professional schools."

The industry can't deny those realities, but it can embrace change and tackle the problem head on. From the perspective of independent agents, there are a number of best practices to adopt to raise awareness of the industry and highlight the positives of their business with the goal of attracting new talent.

1. Understand the needs and wants of the new generation

The habits, likes and expectations of millennials seem to make headlines every day. If an agency wants to ensure its future, it will need to understand what millennials want and align those wants and needs with the opportunities within the agency. They will need to try to match the interests of those millennials with those of the agency.

Agencies should consider using language to catch a millennial's eye, including keywords like flexibility, opportunity, innovation, charity and independence. Additionally, they should consider offering in-house mentoring and promote its availability, along with descriptions of the agency's culture.

2. Plug the variety of opportunities and challenges available

Insurance careers engage a wide range of skills and talents and offer competitive pay. Agencies need to let potential insurance professionals know this. Insurance is an innovative industry offering opportunities to work in more than just claims and sales. New hires will tap into their math and technological skills, among others. Opportunities are available from sales to marketing to legal, and internships are available for those looking to get a foot in the door.

Further, agencies should let these prospects know that a full career awaits in insurance with many opportunities for growth both professionally and financially.

Take time to explain that working in insurance means helping people. (Photo: Shutterstock)

3. What's the employee value proposition?

According to the headlines, Generation Z is looking for more than just a job. Volunteering and charity are often significant parts of their lives, and painting an agency with a philanthropic brush can only help attract these community-minded individuals.

Agencies need to explain what sets them apart from other employers and be sure to highlight philanthropic activity as well as the agency's awareness that it's part of a larger society that needs to give back. Agents should motivate candidates and new hires to get them excited for a career in insurance.

Agency owners should point out the benefits of the agency, including paid time off, remote work options, anything that highlights a focus on work-life balance and in particular, highlight the agency's volunteer opportunities.

4. Get the word out

Agencies need to advertise for new hires, including anticipated openings or additional staffing requirements. To keep a steady flow of professionals coming into the field, they should solicit new candidates year-round. One place to establish an awareness is the local community college. A number of these students may not have finalized their career path, and seemingly have ties to the local community. Agencies should also explain how such a career can be satisfying on a number of fronts. Working in insurance, professionals are helping people protect their homes, are available at their time of most need, and are giving back to their communities regularly.

Moving toward the future

The problem has been identified. The facts and statistics are in. While the industry as a whole works to promote risk programs at the college level to encourage more careers in insurance, agents can take action as well.

Agents can educate the young professionals and college students in their communities on the merits of an insurance career. They can do this by being a resource, being visible in the community, making their community involvement known, and sharing information about job opportunities and the culture of the workplace on their website, via social media and through any other medium relevant to their communities. Independent agents who need to boost these resources can consider joining a network or alliance to improve their influence.

The independent agent is a critical part of the fabric of the insurance industry. Ensuring the next generation is on board to fuel the independent agent distribution channel for the next few decades cannot be overlooked. Looking forward to a prosperous 2018!

Matt Masiello is executive vice president and COO of the Strategic Insurance Agency Alliance (SIAA) and CEO of the SAN Group. He can be reached at [email protected].

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