Client relationships, opportunity to serve, diversity in job are all major attractions
I recently received a phone call from the son of a longtime family friend. Adam, who was beginning his senior year of high school, was encouraged by his dad to contact several people of various professions to guide him in selecting a college and ultimately a career. Adam asked if we could meet to discuss the insurance industry.
I was pleased when he arrived on time and had questions ready for me. After a few minutes of small talk, we got down to business. As I prepared for our discussion, I brushed up on general insurance information and statistics I could share with him.
There are 2.3 million people in the United States employed by the insurance industry, I told him, which is divided between property-casualty and life-health segments (according to the Insurance Information Institute in New York). I went on to tell him there are more than 3,000 p-c insurers in the nation.
As the population continues to grow, baby boomers age and businesses continue to expand, the demand for insurance products and qualified insurance professionals in the areas of sales, underwriting, claims, loss control, actuarial, risk management and other related areas will also grow, I pointed out.
After regurgitating a few more facts and figures, Adam interrupted me, as 17-year-olds can tend to do, and asked me:
o Why did you enter the insurance business? Was it something you always wanted to do?
These questions were easy for me to answer. Growing up, I said, I always wanted to be an architect and selected my college primarily on the program offered. However, after two years, I came to the painful and humbling realization that my buildings would be aesthetically pleasing but would have a propensity to fall down. I did well in my design classes, I found, but struggled mightily with structural engineering.
Thus, I transferred to the school of business and graduated with a degree in marketing. I just did not have a strong enough love for architecture to make it my career, I realized.
o Did you ever take any insurance classes in college? Is it possible to receive an insurance degree?
I was ready for this question. Along with refreshing my insurance stats, I had spoken with one of my company's college recruiters to gather information on colleges that specifically offer risk management and insurance degree programs.
The Wharton School at the University of Pennsylvania founded the world's first academic program for insurance instruction and research in 1913, I told him. Many schools today offer insurance and risk management undergraduate, graduate and doctoral degree programs, and most offer insurance-specific scholarships.
Many major insurance companies and brokerages recruit from these colleges, I told him, and their collective placement rate was extremely high–nearly 100 percent. I gave him several brochures of colleges that offer such programs.
o Since you didn't receive a degree in insurance, how did you enter the business?
I interviewed with many companies searching for the right opportunity after I graduated, I revealed. After an exhaustive search, I began working as an insurance field representative for an agribusiness insurance carrier. It was a small, specialized insurance company with a hands-on training program.
I had a fantastic manager and he encouraged me to continue my education. Actually, he did a bit more than "encourage." On my second day, he asked when I was going to start taking the Chartered Property Casualty Underwriter designation classes. It wasn't an option he presented to me but a requirement if I wanted to succeed.
Although I worked for my first manager for a short time before he retired, he had a significant influence on my career, I told Adam. I completed my CPCU, as he "encouraged." Today, I try to inspire others to continue their education by attending industry events and obtaining designations.
o What do you like about the insurance business?
Within the first year at the agribusiness insurer, I realized insurance could serve as my career, I told him. As a field representative, the majority of my interests were served. I liked the combination of sales, building relationships with my clients, prospecting for new accounts, and the technical aspects of the industry.
In addition, I liked the dynamic nature of my job–every day offered different challenges and every client brought new opportunities. This was especially true once I left the agribusiness insurance company for one of the largest commercial insurance companies, where I served as a commercial underwriter.
I loved insurance, I told Adam, but I wanted to expand beyond grain elevators, cattle feed lots and hog barns. My shoes liked the career move as well!
He basically understood what a commercial insurance underwriter's job involved, but he wanted to know how it differed from being a field representative for an agribusiness insurance company.
As a commercial underwriter for a large company, I worked with many independent insurance agents and brokers, developed relationships and worked with them to grow a profitable book of business.
One day I would underwrite a chain of retail clothing stores, the next a manufacturer of sunglasses and other optical goods, then the next day a printing company. The variety was one of the strongest attractions for me serving as an underwriter, I explained.
With each account, I had the opportunity to investigate the business and dig deep into the details of the operation. I studied every aspect of the business, including the manufacturing process, human resources practices and controls, safety and loss control programs, financial condition, and overall management structure.
Nearly 10 years ago, I moved from underwriting to the independent agency/brokerage side of the business, which prompted Adam to ask why I made the move and what the differences and similarities are.
After nearly five years serving as an underwriter, I was presented with an opportunity to work as the marketing manager for a midsized independent agency, I explained. It was a great chance to learn the agency side of the business.
It was not altogether different from being an underwriter, I found. Each client presented varied challenges and opportunities. I developed relationships with my insurance company underwriters and we worked together in developing a profitable book of business.
The major attraction for me in serving as an agent was being closer to the insured and to the ultimate buying decision, I went on. My success is directly tied to developing and managing that relationship.
As we came to the end of our discussion, I asked Adam what he thought of insurance as a career. He said he was very intrigued and asked if we could continue our conversation in the future. He said he would contact several of the colleges we discussed to explore their risk management and insurance degree programs. We shook hands and he left.
Returning to my family room, I relaxed in my favorite chair and sat back quietly reflecting on my conversation with Adam. I had a warm, satisfied feeling.
Not only did I help guide a young person in his search for a college and a career, but I reminded myself why I first entered the insurance business and confirmed why it continues its hold on me today.
Steve Kubicki, CPCU, AIM, is a vice president for Lockton Companies Inc. in Kansas City, Mo.
Quotebox (with mug):
"The major attraction for me in serving as an agent was being closer to the insured and to the ultimate buying decision. My success is directly tied to developing and managing that relationship."
Steve Kubicki
Caption:
Advising a young person about careers in the insurance industry can not only help grow the industry workforce but also reminds the mentor about the satisfying aspects of an insurance career.
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