To Address Looming Talent Crisis, Associations Launching Programs To Lure Students To Insurance

It is no secret that the insurance industry is in the middle of a generational crisis as experienced managers and producers begin to look at retirement—and are discovering that there is a dearth of younger leaders ready to take their place.

“We see the talent gap as boomers retire,” says Warren Farrar, president and chairman of the Chartered Property Casualty Underwriters Society [CPCU] and assistant vice president with State Farm. “The challenge is to lure young people into the industry.”

He says the problem is that younger people are not interested in a career in insurance. One major reason for this is that they do not know about the many career disciplines that are open to them outside of sales, with opportunities ranging from customer service to claims investigation to high tech to law.

“We are very concerned about this [misperception],” says Farrar.

Taking Action

The industry has taken a major step toward devising a strategy for addressing this talent gap: a meeting in early October of more than 100 concerned insurance executives in Atlanta at the “Insurance Education and Career Summit” organized by the Griffith Foundation.

Students at the meeting told industry leaders that if the industry wants to get the word out about what a great career insurance can offer, they need to develop a unified message.

From that recommendation—straight from the mouths of babes, as it were—Farrar says members of the industry are working on developing a comprehensive strategy to address this issue.

The educational foundations of CPCU and LOMA (Life Office Management Association) are planning to work with approximately 147 chapters to develop initiatives aimed at getting that uniform message out.

“We are working across a lot of educational foundations to develop a strategy that will increase awareness and bring these young people into the industry,” says Farrar. “We are excited about what this can bring to us as an industry.”

Investing In Youth: The Community College Route

In addition to the work being undertaken by CPCU and LOMA, two of the major insurance agent and broker associations have realized for a while now that a perpetuation crisis was brewing—and they have taken the initiative in developing solutions, including providing scholarships.

One of the oldest education initiatives aimed at the younger generation is the Independent Insurance Agents & Brokers of America's (IIABA) InVEST initiative, which began working to develop programs for community colleges about 15 years ago, says Jennifer Robinson, program manager.

Today, approximately 43 community colleges offer programs aimed at giving students the education they need to get jobs in the insurance industry.

IIABA state affiliates in Kentucky and Nebraska serve as two examples of the kind of community-college initiatives the associations are developing.

Peggy Porter, president and CEO of the Independent Insurance Agents of Kentucky, explains that about three years ago, the association approached Jefferson Community and Technical College in Louisville and worked with the school to begin a program to provide insurance-career education opportunities.

To get the ball rolling, the program was developed as a certificate program, consisting of four courses of three credits each. Upon completion, students receive an Accredited Advisor in Insurance designation that allows them to take the agent's license examination.

Because many of these students are holding down full-time jobs, Porter says that on the drawing board is developing online courses and intern and mentoring programs with local agencies. Ultimately, the aim is to get the program accredited so it will count toward an associate's degree.

“It takes a little while to get all the parts in place,” says Porter.

News From Nebraska

In Nebraska, Liz Kittell, marketing consultant for the Independent Insurance Agents of Nebraska in Lincoln, says a presentation made to the dean of Northeast Community College in Norfolk, Neb. led to getting an accredited, two-year associates-degree program in insurance services at the school.

Still in its infancy, the program attracted four full-time students in its first year. Those students are still in the program today. Other students have taken the classes as part of a general-business program.

The courses were submitted to the state insurance department and approved for continuing-education credit. The program also gives students the opportunity to take the agent's license examination.

Kittell says a graduate can get a job as an agency representative, a producer or working in an underwriter position.

“A lot of companies in Nebraska are very excited that they are getting students that are exposed to insurance and have an insurance degree,” says Kittell.