Southwestern universities focus on training the next generation of risk managers

Unique opportunities abound along the U.S.-Mexico border for individuals considering insurance or risk management as a career.

The growing Hispanic population in the U.S. is providing opportunities for carriers to meet the needs of new potential customers. (Photo: Shutterstock)

The southern border of the United States has garnered a lot of attention over the last few months due to immigration issues. Lesser known is the growing presence of risk management education in the Borderplex, the nexus of the area where Mexico, New Mexico, and Texas converge. The three major metropolitan areas in the Borderplex are El Paso, Texas; Las Cruces, New Mexico; and Ciudad Juárez, Chihuahua, Mexico.

When insurance and the Mexican border are used in the same sentence, it usually involves the question of coverage in a standard private passenger automobile policy while driving in Mexico. Some insurers along the border may provide limited coverage within a few miles inside Mexico, but others are dropping that option and selling a separate policy for such coverage. It is not unusual to see makeshift folding tables or stands with laptops set up right at the border for the purpose of offering auto insurance to Mexicans while traveling in the United States for a day or perhaps longer.

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Educating future risk managers

New Mexico State University (NMSU) near Las Cruces, about 40 miles from the Mexican border, has the oldest and most established Risk Management & Insurance Studies (RMI) program in the region. While RMI classes have been offered at NMSU for at least 30 years, the program really took off with the establishment of the Mountain States Insurance Group Endowed Chair in 2006. That $1 million chair, along with major funding provided by New Mexico Mutual Insurance and other industry supporters, resulted in adding an RMI minor and RMI specialization within the finance major, and established the Center for the Study of Insurance and Financial Services.

NMSU has aggressively courted potential students that are Mexican nationals. The Descubre (discover in Spanish) program cut tuition for out-of-state students from Mexico by more than half. The program also complements initiatives at NMSU and collaborates with the National Institute of Technology of Mexico, the National Council of Science and Technology in Mexico (CONACYT), the National Council of Science, Technology and Technological Innovation in Mexico (CONCYTECH), and other Mexican institutions supporting higher education.

NMSU continues to move forward with plans to establish a campus in Mexico by fall 2020. Earlier this year, the NMSU Board of Regents unanimously voted to sign a non-committal letter of intent to consider building a campus in San Luis Potosi, Mexico. San Luis Potosi is at the center for three Mexican cities — Monterrey, Guadalajara and Mexico City. The branch campus would offer courses in English only with the main goal of allowing Mexican students to receive an American education in Mexico. The university also hopes to encourage faculty and students to teach or study in San Luis Potosi for a semester or a year.

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Attracting a new audience to insurance

NMSU is classified as a Hispanic-serving institution by the U.S. Department of Education and is a member of the Hispanic Association of Colleges and Universities, one of only a handful of risk management and insurance studies programs receiving this designation.

With an increasing insurance presence in El Paso, Texas, by such companies as Prudential and ADP, the University of Texas – El Paso has recently added insurance-related classes to its curriculum. The actuarial science concentration is now available in the mathematical sciences department. (El Paso is the second largest U.S. city located on the border.)

Ciudad Juarez currently does not offer an RMI program to my knowledge. However, I have spoken to insurance brokers in El Paso who collaborate with licensed insurance brokers in Juarez to conduct business across both borders.

Juarez is the second largest border city in Mexico, and is slightly smaller than Tijuana. The only other U.S.-based RMI Studies programs located within 200 miles of Mexico are California State University-Fullerton, which is about 120 miles from Mexico; St. Mary’s University in San Antonio and California State University – Northridge, both of which are about 160 miles from the border.

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A simple search highlights numerous articles on the lack of diversity within the insurance industry, as well as the need for bilingual/bicultural insurance professionals. According to Forbes magazine, almost 25% of all U.S. millennials are Hispanic, and these consumers, while displaying similarities with other non-Hispanic millennials when it comes to attitudes and behaviors also demonstrate a strong connection to the Latino culture.

Perhaps one obvious way for the insurance industry to connect with this promising demographic, for both customers and employees, is to invest in and recruit at Hispanic-serving institutions.

Dr. Tim Query is a professor of risk management and insurance at New Mexico State University. He holds the Mountain States Insurance Group Endowed Chair and has taught risk management, insurance, and finance classes for over 25 years. Contact him at tquery@nmsu.edu. Opinions expressed are the author’s.