Is the insurance industry in for a bumpy ride in 2020?
Among our predictions for the new year: Disruption and consolidation will continue along with the struggle to find innovative talent.
As the calendar turns to a new year, no one has a crystal ball to predict what will happen.
One thing we can predict is the many bad puns related to the year: I don’t have 20/20 vision, for instance.
Another prediction that I’m willing to make for the coming year is that it will be exciting and, I think, more uncertain than usual. The event that is likely to garner the most media hype is the presidential election. But congressional seats and local elections are also significant, as they often have more impact on daily life.
For the insurance industry, I won’t presume to make grand predictions, other than to quote Bette Davis in the classic movie, “All About Eve”: “Fasten your seat belts. It’s going to be a bumpy night!”
Distribution disruption is likely to continue along with consolidation of carriers, brokers and agencies. We also can expect the struggle to find talent with the right skills to innovate. Meanwhile, competition for senior executives remains fierce.
That leads to another prediction: Diversity and inclusion will be more than buzzwords in 2020. One expert I recently heard speak described it like this: “Diversity is considering everyone; inclusion is inviting everyone to the table.”
As businesses deal with the reality of replacing workers, they must broaden their search.
Several years ago, while on vacation, I met a young couple from South Africa. They worked in technology. We talked about efforts to overcome apartheid, and they noted that apartheid was disappearing due to the need for employees with certain skills. Race, color, ethnicity and nationalism were taking a back seat to whether a hire could help businesses succeed.
I see the same thing happening in the insurance industry, especially as younger employees begin to build their careers. A great gift of most recent graduates is that they are the most open and accepting generation.
In addition, millennials and Gen Z are idealistic and community-minded. They want jobs and careers with firms that demonstrate a strong commitment to social responsibility.
Insurance companies as well as professionals at all levels demonstrate their commitment to the greater good through specific outreach in their communities, but also through their membership in the Insurance Industry Charitable Foundation (IICF).
On Dec. 12, I was privileged to be in attendance at the IICF Northeast Division’s annual benefit dinner, which this year honored Anthony F. Markel and Markel Corporation for business and philanthropic leadership. In addition to the organizations they support, the company provides a match of $3 for every $1 that employees donate, up to a certain cap. The company also gives employees paid time off to volunteer, and supports their efforts all year long.
In 2020, NUPC plans to continue covering the industry’s progress with diversity and inclusion initiatives as well as emerging risks. We’ll bring you in-depth analysis of insurance markets and the impact of current events on the industry, aided by our esteemed 2020 Editorial Advisory Board.
My team and I have our seat belts fastened, and we’re ready for the ride into the new year. Thank you for joining us on the journey.
And that is what’s top of mind for me this month.
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