Remember that classic scene from the movie “Groundhog Day,” when Bill Murray’s character, Phil Connors, punches the insurance guy, Ned Ryerson, in the face? While Ol’ Ned’s more caricature than character, he nevertheless personifies what so many think about working in insurance. Yes, if you want to aggressively sell policies on the street, there’s a job out there for you—and there’s nothing wrong with that. But what people should really understand is that insurance careers are diverse and built to last a lifetime. And if more people knew about the vast number and range of opportunities, they would be knocked off their feet (pun reference to Ned intended…).
The Revolution Will Be Digitized (And We’re Recruiting the People Who Will Lead It)
Like virtually all other industries, insurance is on the brink of an innovation revolution. Advances in insurtech applications, such as applying artificial intelligence (AI) to claims and underwriting processes, are creating a demand for employees who can mainstream these breakthroughs and evolve new solutions that will make insurers more agile, efficient and responsive to customer needs.
Developing and onboarding the talent necessary to bring about this revolution represents just one aspect of the immense commitment being made by insurance businesses: A Tata Consulting Services survey of 13 global industries (a list that includes banking, energy, telecom, high tech and industrial manufacturing), notes that the insurance sector, on average, outspends all other industries in AI investment by a wide margin. And this is just the beginning… A quick look at Chart 1, from a recent McKinsey study, “The Case for Digital Reinvention,” shows that the financial services sector is still far from reaching mainstream adoption of digital technologies. But among financial services businesses, insurers are investing in and embracing digital in every facet of our business—and at a breakneck pace—creating great opportunities to work in an industry that’s holding nothing back in its drive to be a leader in tech innovation.
Chart 1
This trend toward investing in the people and innovations that help insurers solve their personal and commercial lines customers’ problems, however, overlaps with another big-picture story about the insurance industry: That it needs to replace “hundreds of thousands” of workers who will age out of the workforce within a few years. The latter story emphasizes the wrong point: That insurance is having a talent crisis.
In fact, the industry, far from being in crisis, is offering opportunities that are virtually unmatched in scope. Nested inside our need to hire for growth, stability and innovation is a critical challenge facing our industry every day: The necessity to project a public image that stresses the insurance industry’s incredible power to do good and contribute to communities and the economy at large. And this is why we’re having the quintessential “teachable moment,” one in which insurers have unique opportunities to communicate the almost limitless potential of insurance careers to the next generation of leaders and builders.
Let’s Focus on the Facts:
For starters, the insurance business is remarkably stable and is a major economic driver. As Chart 2 shows, in 2017, the industry generated 3.1 percent of the U. S. GDP. To put that into perspective with other areas of the financial services sector, banking contributed 2.8 percent and the securities industry 1.3 percent. In other words, we clearly hold our own as a contributor to economic growth and stability—especially at times when it is needed most. In Chart 3 we see that only a handful of insurers suffered business impairments during the Great Recession. Thankfully, policymakers are recognizing this fact, as the U.S. Treasury Department Financial Stability Oversight Council (FSOC) recently removed AIG from their list of designated Systemically Important Financial Institutions, or SIFIs.
Chart 2:
Chart 3:
Additionally, insurers are, and will continue to be, deliberative and cautious in managing revenue and assets. Surprisingly few people outside insurance know that our industry is one of the largest asset managers in the world. At the end of 2016 there were $5.8 trillion of assets under management ($1.5 trillion property/casualty, $3.7 trillion life). Again, to put this in perspective, the world’s largest single asset management group is BlackRock, which has $5.7 trillion AUM (assets under management). Looking for a rewarding career in finance that offers great work/life balance from the get-go? Insurance is now hiring the best and brightest!
Making a Difference in the World
Beyond the sheer volume of investment, another important element to consider is how this capital helps to improve communities and economies. In order to keep its promises to help policyholders rebuild and recover, the industry builds substantial reserves for restoring households and businesses affected by natural catastrophes and other unforeseen events. To safeguard this reserve, insurers pursue long-term balanced portfolio strategies that include bonds that fund large-scale infrastructure projects. And insurance invests in making communities and individuals safer and more resilient in the face of natural catastophes—empowering those who work in our industry to find ways to mitigate losses of life and property, and to help people rebuild.
… And in Your Neck of the Woods
Possibly our biggest contribution, however, is one that has an impact from coast-to-coast. We employ more than 2.8 million Americans in a variety of areas including sales and marketing, finance and risk management, and engineering and data sciences. And, beyond fields closely related our industry, we are also eagerly looking for professionals in areas that few would associate with insurance, such as art historians, drone pilots, social scientists and even video gaming enthusiasts.
Insurance Empowers Us All to Pursue Our Goals and Dreams
The good news is that the message is getting out there: People are leaving jobs in tech and other highly desired fields for careers in the insurance sector. And to attract more of this next-gen talent, we’re optimizing our business culture to engage, mentor and support younger workers. We’re reaching bigger audiences with “surround sound” messaging about how insurance supports and strengthens the economy. But it is incumbent on us all to reach out also as individuals to teach others what we’ve known for years: That no matter what you’ve studied, and no matter what you’ve done, insurance is the place where you’ll be able to follow virtually any career path you can think of. And, maybe best of all, for every person who’s ever been told, “We don’t pay you to think,” insurance is here to offer a place to do just that; think, learn, grow and make a difference in the world, every day.
Sean M. Kevelighan is Chief Executive Officer of the Insurance Information Institute. He has nearly 20 years’ private and public sector experience in communications and public policy. Follow him on Twitter at @III_SeanK.
Sean Kevelighan
Chief Executive Officer, Insurance Information Institute