While such misperceptions may be prompted by ignorance and misunderstanding, their impact on the insurance industry are real. College business majors, Ms. Gannon pointed out, are far more interested in pursuing careers in areas such as banking than insurance.

Ms. Gannon suggested developing closer relationships with high schools and colleges, and providing internships as ways the industry could attract more talent. But in the absence of a large influx of new recruits, the industry faces the critical task of properly training and preparing those who do join the insurance sector, she noted.

Indeed, insurers have done a “reasonably good job” in that regard, according to Ms. Gannon, noting that larger companies, such as State Farm, have committed to internships to attract talent in areas where they are having trouble recruiting young workers.

However, as the economy slides and the soft market deepens, slashing commitments to training and education could seem like an attractive way for insurers and agencies to save some money–yet Ms. Gannon said this is the case only to a certain extent.

She said that companies, instead of cutting training budgets across-the-board, are instead sharpening their focus to effectively achieve short-term benefits, rather than long-term objectives, with budgets being tightened.

For example, Ms. Gannon noted that companies have been reimbursing workers who take college courses, but now they have cut back on that, or are at least asking their employees to prove that the education is directly related to the job.

Ultimately, it is about cost-effectiveness for companies. While Ms. Gannon said insurance organizations are cutting their overall training budgets, she noted they are willing to increase investment for education in some areas, if they believe it will raise the productivity of their employees.

Companies are also looking for more value for their dollar when it comes to training, according to Ms. Gannon. Rather than sending employees to receive classroom training for 12 weeks, they are looking for ways to get the same level of education through less expensive means.

For this reason, Ms. Gannon said that EMB provides “combination” training, where employees can go through some personal instruction, but then supplement that with online tutorials and on-the-job training.

For independent agents, there may be other forces at work besides the insurance cycle and the economy.

Connie Vecellio, director of education for the Professional Insurance Agents of New York, said she has seen education programs go through “up and down” cycles for reasons she cannot explain.

She said attendance at some courses is down, but others are doing extremely well. Sometimes, she noted, there is a spike for continuing education courses when licenses are up for renewal, which must be attended to regardless of the state of the insurance market.

In general, through this soft market, Ms. Vecellio said PIA's education programs are “doing very well.”

She said she is sure that insurance agencies, like companies, are watching their budgets closely in this market, but added that agents may be willing to spend on education if they like what they are getting in return for their investment.

Even so, Ms. Vecellio said PIA does offer some alternative education methods that would cut down on costs and time out of the office. She mentioned the “Lunch and Learn” program, where agencies can call PIA and customize exactly what they want taught, and have the programs taught right in their offices.

As for online training for agents, Ms. Vecellio said that interest there has been a slow process, but it is picking up more recently. Some agents, she said, do not like the online courses because they prefer more face-to-face interaction.