Where to find risk consulting candidates of the future

Loss Control operations within insurance carriers has been a staple of the industry for more than a century, as risk consultants wear many hats, including data collection, risk classification and external client servicing. For much of this history, the risk consulting job has remained stable with minimal changes, allowing for a smooth transition from novice to senior executive. As technology is rapidly changing the insurance carrier ecosystem, however, one challenge facing providers is, where to find the risk consultants of the future.

For example, in the construction industry, from the transition of pipe schedule automatic systems to ESFR (Early Suppression Fast Response) sprinkler technology, to construction modifications accommodating wind speed calculations in the face of hurricane exposures, risk consultants must be ready to handle a wide spectrum of tasks. Exposures such as cyber, global supply chains, non-damage business interruption and big data analysis have all changed the landscape of insurance, and these new business complexities require ongoing enhancement of a consultant’s background and skills.

In the current landscape the need for knowledgeable risk consulting is greater than ever. The core skillset of the risk consultant of yesterday and today still requires the understanding of exposures pertaining to fire, flood and product recall as well as cargo shipping. The ability to differentiate one’s brand in the marketplace is a critical aspect of an insurance carrier’s success, and risk consulting is a key avenue of differentiation.

Related: How the insurance industry can attract and retain new talent

Where to look now

Most college students don’t consider the insurance industry as a career option, regardless of their curriculum. Many risk consultants in the marketplace today stumbled upon this type of career as part of their job search after graduation. No insurance company will find long-term success without an ongoing pipeline of skilled employees, and so, here are suggestions as to where a carrier can find the talent required for today’s evolving insurance industry landscape.

• Provide internship opportunities for college students. Introduction to the workings of an insurance company in support of business growth can be a great opportunity for a student in search of a career path.

• Reach out to graduate engineers. They and safety consultants are still the “go to” disciplines for entry-level risk consulting roles because they have the required math and science background. But don’t overlook the liberal arts majors who apply as they have also had successful careers in the insurance industry. The carrier needs to train these new hires in the methodology required to meet underwriting needs.

• Hire experienced staff from competitors. This can be a “plug and chug” approach as the only training needed is specific to the insurance carrier’s needs. The applicant already has the risk consulting expertise, for the most part.

• Hire experienced individuals from specific industries. Understanding industry specifics is critical to underwriting success within that industry. For example, if you need a risk consultant specializing in real estate, look to realtors or mortgage brokers as a resource. Risk consultants who have certain sector experience can drive better approaches to data collection and also allow clear differentiation capability within the industry — and in some is a carrier requirement.  This approach has its challenges, however,  as there may be resource limitations requiring this expert to step out of their comfort area and handle other areas of business.

Risk consulting is not an exact science. It is an interpretation of multiple codes, best practices, past experience and internal underwriting guidelines in a world of various shades of gray.  The shades of gray may include challenging occupancies, differing levels of exposures with various tiers of controls in place, changing business practices and carriers as well as clients with different levels of insurance coverage.

Related: Survey predicts record hiring in insurance industry during 2018

Thomas Varney is regional manager, Allianz Risk Consulting, Americas. He can be reached at thomas.varney@agcs.allianz.com.