Attracting the next generation of leaders
Gen Z employees are learning the skills and gaining the knowledge to help insurers fill a wide variety of open jobs.
One of the benefits of teaching at a university involves interactions with students and providing them with insights into a personally rewarding profession. After class, I had a student visit me seeking some career guidance. This young man was a finance major, expecting to graduate from Mercyhurst University the following spring. He grew up in western Pennsylvania and had been personally impacted by the recession of 2008. He was looking for a stable industry to begin his working career and wanted to learn more about insurance.
I met with him a few times that semester while he was in my upper-level class so he could learn more about risk management and insurance, and I could find out what goals, aspirations and motivations were driving him. He later volunteered to serve as an officer in a new business club for insurance. I got to know him well and determined he would be a great fit for a claims team at an insurance carrier.
Finding stability in an uncertain world
Today’s generation of college students, known as “Generation Z” or “iGen,” was born after 1996, with the oldest approximately 23 years of age. Before this year, college graduates entered a robust job market in which employers were competing not only within their industry but also among industries to attract new talent. Since the COVID-19 pandemic altered the economic engine that was humming along, it negatively affected their job market, as the national unemployment rate for July 2020 was 10.2%. However, the insurance sector unemployment rate was 4.8% (Bureau of Labor Statistics). The industry’s unemployment rate has historically been below the national rate, showing resiliency relative to the overall economy.
With the economic uncertainty created by the COVID-19 pandemic, the resulting anxiety of college students is understandable. The freshmen lost the end of their senior year of high school. Athletes have had their fall sports taken away, just like those who were in spring sports did earlier this year. They have had to socially distance and limit their summer activities. Some colleges required them to self-quarantine for up to two weeks before the start of the fall semester. Masks for faculty and students are required at all times, while faculty may use face shields to teach. The changes are becoming a way of life. The uncertainty of the times is adding to an already anxious student population.
The insurance industry, a steady beacon of stability, offers career options for these students. In the F.W. Hirt-Erie Insurance Risk Management program here at Mercyhurst University, students have already seen the light and are being strongly drawn to it. Upon establishing on campus the Gamma Kappa Chapter of Gamma Iota Sigma, the international risk management, insurance and actuary business fraternal organization, several leaders have moved on to insurance careers. Both past presidents work for carriers, one in IT and the other in claims. Neither had considered the industry until they took one of the classes in the discipline.
Another past secretary serves as an adjuster in Texas after graduating in 2019. These students exemplify the strong work ethic of iGen students. The characteristics they have been observed to exude — more diverse, better educated, tolerant of differences — offer the insurance industry opportunities to attract them to meaningful careers in sales, underwriting, claims, and ancillary support for carriers, according to the Pew Research Center.
Additional observations of Gen Z are that they are driven, competitive and pragmatic, more so than those in the millennial group. From an education perspective, the generation tends to learn quickly and through multiple channels, mostly video. From personal observations, I can confirm these findings. Three iGen members are in my household; they use videos and hands-on opportunities to supplement other materials and instructions. Sometimes video is the best medium for them to learn.
Focusing on employment
The insurance sector employment picture is extremely favorable, with potential retirements already representing 25% of the workforce. During the pandemic, insurance companies instituted hiring freezes despite over 40% having open positions, according to a greatinsurancejobs.com survey. Some carriers continue to hire, just at a slower pace. I spoke with a member of the university’s Risk Management Advisory Board this summer, a senior sales executive in the E&S market, who had a position to fill with others in her organization looking for talent.
To educate this next generation of the insurance industry, members in the profession need to get out and spread the news. Insurance companies need representatives to “visit” high schools (virtually in today’s Covid-19 environment) to let college-bound students know what opportunities are available and how exciting an insurance career is.
Companies need to support college programs, as well. There are several ways to do so in addition to offering class speakers. Providing learning resources is highly prized. I collaborated with firms that have software systems available for students to learn about real-world issues and scenarios in the classroom.
For instance, students in the Insurance Operations class used risk management and claims software from two different companies. The students applied the software capabilities to case studies so that they would have a working knowledge of how underwriting and claims interact when losses occur. They also learned the challenges adjusters face when analyzing coverage, liability and damages even with a state of the art claims management system.
Financial support is always welcome, as many universities operate with lean budgets. Putting dollars to work supporting programs that are working diligently to promote and supply the industry with talent is a great investment for insurance carriers. By directly supporting a program, an insurance company will have an inside track to attract graduates to their organization.
The student who sought me out for career advice served the Gamma Kappa chapter as treasurer. He graduated with a bachelor of arts in finance, enrolled in the Cyber Risk Management Graduate program at Mercyhurst University and is on track to graduate next year. This summer, he joined the claims team for a national carrier. He got his foot in the door due to projects and cyber risk management graduate coursework. This student is providing valuable cyber claims insights now as he progresses towards his graduate degree. Additionally, he expects to complete the CPCU Collegiate Studies Certificate requirements by the time he graduates.
The future is bright for him and his peers in insurance. It is up to all of us in the industry and academia to promote the opportunities and rewards to the next generation of leaders.
Gary P. Sullivan, CPCU, (gsullivan@mercyhurst.edu) is assistant professor of risk management in the Walker College of Business at Mercyhurst University. The opinions expressed here are the author’s own.
Related: