Get the Secret out - An Insurance Career is a Purpose Driven Professional Service that adds Huge Value to Society

Matthew T. Studley, MBA, CFA, Chief Operating Officer, Ontario & Atlantic, Hub International

The talent shortfall within the insurance industry and the succession problem we all face need to be urgently addressed. Insurance serves a key societal function in the world economy and is filled with skilled people doing interesting and varied work. If we, as the current industry workforce, don’t accept the challenge of putting this wonderful industry in a better place than when we found it, our clients, employees, companies and reputations will all suffer.

I am told that back in the 1980s, there were two industries that topped new business school grads’ wish lists across North America: investment banking, presumably due to the roar of the leveraged buyout and insurance. How different the world is for one of these industries four decades later, where investment banking remains highly desirable by new grads, yet not so for insurance. Somewhere along the line, because of the overwhelming number of insurance jobs that were filled by the baby boomer generation, we didn’t need to worry about recruiting new generations into the industry.

There are many nuances, products, client problems and roles under the banner of insurance, including wholesale, retail, reinsurance, commercial P&C, specialty lines, employee benefits and personal lines. There is a constant barrage of new products, contract wordings, capacity, insurers, distribution channels, technology and industry M&A. While there is the need to protect people, corporations and counterparties from risks that could be crippling if left unattended.

Given the breadth and complexities of insurance, why don’t people view it as a sought-after, fulfilling and rewarding career choice? Why would we be looked at as a backup plan for so many new graduates? We could blame human psychology, the media and all of us who haven’t been shouting from the rooftops about the benefits this incredible industry provides to its employee base – challenging problem-solving, competitive compensation, job security and career/skill development.

How does human psychology impact perception? According to many scientific studies, negative news sticks with us far longer than positive stories. I think this is tied to a biological defense mechanism through evolution. It reinforces the incorrect attitude that insurance is filled with scammers, insurers who deny valid claims wherever possible and those looking for a quick commission. In reality, these individuals represent a tiny fraction of the industry. Some media subtlety reinforces these biases through negative reporting, which distorts the data and serves as a reminder of an ill-informed attitude.

No matter what you’re interested in, it can be found in insurance

Insurance also seems to be the punch line in many other forms of media. How many children/teenagers would have considered insurance as a career before Pixar’s movie “The Incredibles” showed us what life at Insuricare was like? Some inaccuracies can be changed in time, but other obstacles are far less likely to be solved. Ultimately, we sell and advise on a product that the vast majority of buyers will never use and, therefore, do not see any direct return on the value of the premiums paid.

When I was a new finance graduate, everyone wanted a job in investment banking. Compensation potential was a key driver. However, what many did not realize, myself included, was that in that subset of the financial services industry, most are making substantially less on an hourly basis and doing less interesting work after a year or two than if you went down the less flashy path of insurance.

The issues surrounding our industry’s succession are well documented – the U.S. has about 10 years remaining to replace 400,000 jobs with less than 25 percent of the industry under the age of 35. Canada is not doing any better on a relative basis. Yet, this problem can also be considered an opportunity for new entrants to our great industry, whether new graduates starting their careers or those reskilling from another industry. We need as many people as possible to fill the workplace gap and use new technology/AI to alleviate administrative pain. No one solution will fix the problems, but we need to start somewhere.

No matter what you’re interested in, it can be found in insurance! Here’s a great example: if you love sports, there is insurance for sports teams and sports facilities, protecting companies from financial consequences if a pro player gets injured, and protecting players’ contracts from adverse tax consequences, just to name a few.

Our industry has so much to offer. It is dynamic, purpose-filled, and interesting-all while providing social good. We need to communicate this opportunity to bring a new diversity of backgrounds, experiences and cultures into the industry to build a more resilient sector for the future. Diversity leads to differing opinions, which means better and more balanced business perspectives and decisions.Whether you move into underwriting, brokerage, legal, IT, etc., the insurance industry is at the intersection of worldwide technological change, risk/data analytics and innovation. It is a career that offers stability and unlimited income potential in many roles and is a growing sector with constantly changing client needs, all leading to success.