The insurance industry continues to face a crisis and this oneis not due to the deluge of recent hurricanes affecting theSoutheast or devastating wildfires out West. What the insuranceindustry faces — from large corporation to Main Street independentagent — is a talent drought. 

As with most industries, property & casualty insurers aredealing with huge numbers of professionals leaving the workforce asthey reach retirement age and job descriptions evolving withtechnology. Fueling the problem is attrition. A 2010 report fromMcKinsey & Company found that the number of workers in theinsurance industry over age 55 increased 75% during the previousdecade – leaving 20% of the insurance workforce approachingretirement. Meanwhile, the report also found that those graduatingfrom risk management and insurance programs met only 10% to 15% ofthe industry's need. And the situation has only gotten worse.

Moving into 2018, we are at a critical point. The excessivenumber of people retiring from the industry coupled with a lownumber of young people signing on to insurance as a career presentsa great risk for each organization in the industry — big orsmall.

What can independent agents, in particular, do to combat thelooming talent drought?

Let's admit it: We have an issue

In some ways, we, as an industry brought this problem onourselves. The industry neglected to focus on attracting talent andeducating the next generation about the benefits of an insurancecareer. Now, we're facing a deficit of qualified or even interestedcandidates. In order to attract younger candidates to the field ofinsurance, the industry — known in many circles for its drabness —must change with the times.

In its report, McKinsey blamed three realities for the insuranceindustry's lack of appeal to the younger generation: "a poorreputation, a dim awareness and understanding of careeropportunities among high school and college students, and ashortfall of trained students produced by professionalschools."

The industry can't deny those realities, but it can embracechange and tackle the problem head on. From the perspective ofindependent agents, there are a number of best practices to adoptto raise awareness of the industry and highlight the positives oftheir business with the goal of attracting new talent.

1.   Understand the needs and wants of the newgeneration

The habits, likes and expectations of millennials seem to makeheadlines every day. If an agency wants to ensure its future, itwill need to understand what millennials want and align those wantsand needs with the opportunities within the agency. They will needto try to match the interests of those millennials with those ofthe agency.

Agencies should consider using language to catch a millennial'seye, including keywords like flexibility, opportunity, innovation,charity and independence. Additionally, they should consideroffering in-house mentoring and promote its availability, alongwith descriptions of the agency's culture.

2. Plug the variety of opportunities and challengesavailable

Insurance careers engage a wide range of skills and talents andoffer competitive pay. Agencies need to let potential insuranceprofessionals know this. Insurance is an innovative industryoffering opportunities to work in more than just claims and sales.New hires will tap into their math and technological skills, amongothers. Opportunities are available from sales to marketing tolegal, and internships are available for those looking to get afoot in the door.

Further, agencies should let these prospects know that a fullcareer awaits in insurance with many opportunities for growth bothprofessionally and financially.

Related: Employment trends throughout the insurance industry inApril 2017

Take time to explain that working in insurance means helpingpeople. (Photo: Shutterstock)

3. What's the employee value proposition?

According to the headlines, Generation Z is looking for morethan just a job. Volunteering and charity are often significantparts of their lives, and painting an agency with a philanthropicbrush can only help attract these community-minded individuals.

Agencies need to explain what sets them apart from otheremployers and be sure to highlight philanthropic activity as wellas the agency's awareness that it's part of a larger society thatneeds to give back. Agents should motivate candidates and new hiresto get them excited for a career ininsurance.  

Agency owners should point out the benefits of the agency,including paid time off, remote work options, anything thathighlights a focus on work-life balance and in particular,highlight the agency's volunteer opportunities.

Related: IICF's disaster relief funds to assist victims ofhurricanes

4.    Getthe word out

Agencies need to advertise for new hires, including anticipatedopenings or additional staffing requirements. To keep a steady flowof professionals coming into the field, they should solicit newcandidates year-round. One place to establish an awareness is thelocal community college. A number of these students may not havefinalized their career path, and seemingly have ties to the localcommunity. Agencies should also explain how such a career can besatisfying on a number of fronts. Working in insurance,professionals are helping people protect their homes, are availableat their time of most need, and are giving back to theircommunities regularly.

Moving toward the future

The problem has been identified. The facts and statistics arein. While the industry as a whole works to promote risk programs atthe college level to encourage more careers in insurance, agentscan take action as well.

Agents can educate the young professionals and college studentsin their communities on the merits of an insurance career. They cando this by being a resource, being visible in the community, makingtheir community involvement known, and sharing information aboutjob opportunities and the culture of the workplace on theirwebsite, via social media and through any other medium relevant totheir communities. Independent agents who need to boost theseresources can consider joining a network or alliance to improvetheir influence.

The independent agent is a critical part of the fabric of theinsurance industry. Ensuring the next generation is on board tofuel the independent agent distribution channel for the next fewdecades cannot be overlooked. Looking forward to a prosperous2018!

Matt Masiello is executive vice president and COO of theStrategic Insurance Agency Alliance (SIAA) and CEO of the SANGroup. He can be reached at [email protected].