The tidal wave of anticipated retirements is here. This year, the oldest of the baby boomers turn 65 and become eligible for full Social Security benefits. Ten thousand baby boomers a day are now entering this demographic in the U.S. Every seven seconds a Boomer turns 60. And that, according to analysis by the St. John’s University School of Risk Management, means that within the next 15 years, some 50% of the insurance industry will turn over. Half of our industry’s talent pool will be gone.
The U.S. insurance industry is changing with the times and agency owners are addressing the challenge of attracting, engaging, and connecting talent for enduring value. Jill Roth, an account executive for Ahart Frenzi and Smith of Alexandria, Va., never thought she would work in insurance. She worked for a congressman right out of college and left the insurance profession to her father, Tom Ahart.
“I began doing side marketing for my dad because it was a family agency, and I wanted to see it succeed,” she said. “I became highly intrigued with the marketing and jumped right into producing. My dad hired me in sales, and I have been here ever since.”
The opportunity for young people to launch into a lucrative career is soaring with 60% of current insurance professionals looking to retire over the next 15 years. Furthermore, the compounding threat of a changing market requires new perspectives and skills to navigate. To be competitive in the industry, one must understand the new and largest entrant into the workforce – Generation Y.
“It’s important to know: what are their expectations, strengths and working styles?” Roth said. “You should rethink your strategies and priorities to engage this group and connect them to broader organizations. Get involved in the technology world. Get on Facebook. Get on Twitter. Teach your dad what a tweet is. That is the generation. That is what young people can relate to.”
This millennial generation, the largest generation yet at 100 million people, will soon dominate the business world. Agency owners need to attract the attention of the most technology-savvy generation yet who perceives the insurance industry as “old” and “not innovative.” However, the insurance industry offers opportunity for growth, lucrative career opportunities and flexibility for a healthy world life balance.
Jason Cass, CIC at JDC Insurance Group of Centralia, Ill., started from scratch and took a chance on insurance at a young age.
“There are so many great added values of being an independent insurance agent,” he said. “I’m my own boss. I choose the people I want to help and most importantly, I create my own schedule so that I can have my own family time when I want to have it.”
Through its leadership, education and internal programs, the Big “I” has developed InVEST, a comprehensive frameworks for addressing the Generation Y talent challenge. InVEST is an educational program that strengthens the insurance industry by attracting a large pool of qualified recruits. With high school and post-secondary programs active in 40 states, InVEST teaches students business and insurance skills and annually prepares more than 6,000 graduates for careers in the insurance industry.
“I think InVEST is a good start,” Roth said. “States need to go out to high schools and recruit and teach what insurance is about.”
InVEST works with more than 200 high school and community colleges with insurance programs and the Gamma Iota Sigma insurance fraternity to encourage students to pursue careers in insurance. Many Big “I” state associations invite college students to their conferences, especially Young Agent events, and encourage networking and building of relationships. The Big “I” and many of the carriers and other organizations that support the program, encourage their members to become involved with InVEST by volunteering at high school and college level as guest speakers or instructors.
Many insurance companies offer internships as a means to feeding the agency and company pipeline, including robust programs at Travelers, Chubb, Harleysville and Westfield. InVEST is working to assist insurance agencies in developing internship programs with 45% of InVEST graduates entering insurance internships according to a recent survey of InVEST teachers.
The program suggests independent agencies establish an internship program at their agency and provides a step-by-step internship guide online. For more information, visit Career Center tab
Tyger Danger (tyger.danger@iiaba.net) is IA online editor.