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Solving the Insurance Industry Talent Crisis by Investing in Risk Management

and Insurance GraduatesBy Brenda Wells, Ph.D., CPCU, AAI September 2015

About the Author

Dr. Brenda Wells, CPCU, AAI, is the Robert F.Bird Distinguished Scholar of Risk and Insur-ance at East Carolina University. She is a con-sultant to the industry and a sought-after publicspeaker. She holds a Ph.D. and B.B.A. in riskmanagement and insurance from University ofGeorgia and has taught risk management andinsurance for over 25 years. An accomplishedresearcher, she has been published in Journalof Risk and Insurance, Journal of InsuranceIssues, CPCU Journal, Risk Management andInsurance Review, and others.

The talent crisis in the insurance industry,causedlargelybyimpendingbabyboomerretire‐ments,wasdescribed in the firsteditionof thispaper, published by IRMI in 2009.Much atten‐tiontothiscrisishassincebeenpaidinacademicand practitioner literature, including McKinseyand Company (2010), Cole and McCullough(2012), and Karl and Wells (2015). Theseauthorsnotethreepressingissuesforourindus‐try: (1) the insurance industry suffers from apoorreputation,(2)highschoolandcollegestu‐dentspossessalimitedunderstandingofcareeropportunitiesintheinsuranceindustry,and(3)alimitedpooloftalenthassufficienttraining.

Howbigisthecrisis?Thenumberofemploy‐eesaged55andolderhasincreasedbyabout75percentinthelastdecadeandisnearly30percenthigher than therestof theeconomy.Meanwhile, only about 25 percent of theinsuranceworkforceisundertheageof35.Iftheanticipatedrateofretirementscontinues,

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theindustrywillneedtofill400,000positionsby2020(McKinsey).Withsuchalargechunkoftheworkforceretiringinthenext10years,itisarguablymoreofatalent“cliff”thanjustamere“crisis.”Insuranceorganizations—insurers,agencies,andbrokerages—continuetosearchfor solutions to this scarcityof employees inthe25‐to‐40yearagerange.

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Theprimarysourceoftalentednewemployeesis always the local or regional university. His‐torically, many insurance organizations haveused general college recruiting programs,attemptingtopersuadestudentsfromalldisci‐plines to consider a career in the industry. Inthe last 5 years, however, most professors ofriskmanagementandinsurance(RMI)suchasthe author have noted a marked increase inmoretargetedrecruitingeffortsaimedat find‐ing young professionals who are dedicated totheinsuranceindustry.Moreandmoreemploy‐ers, fromthevery largest to theverysmallest,aremaking hiring from a dedicated collegiateRMIprogramarealpriority.

ThisarticleexploreswhythereisvalueinhiringRMI majors versus other degree holders, thecurriculum typically taught by the best pro‐grams,howtoselectaqualityRMIundergradu‐ateprogramfromwhichtorecruit,andhowyoucanbecomeinvolvedinsupportingRMIeduca‐tiontohelpbothyourcompanyandyourindus‐tryinthefuture.

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WhyHireRMIMajors?

There are at leastthree reasons thatrecruitingandhiringyoung people withan RMI education isa good investment.First, these studentshave already beensold on the industryso you don’t need toconvince them of itsmerits. You simplyneed to show them

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that your company and the opportunity youofferissuperiortotheotherinsuranceorga‐nizations they may be considering. HiringeagerRMImajors is an investment in youngpeoplewhohavededicatedasignificantpor‐tionoftheircollegiatestudies,andthustheirtuitiondollars,tolearningaboutinsurance.Itis a safe assumption that theyhave a strongunderlyinginterestintheinsuranceindustry.

Second, their dedication to the insuranceindustry translates into a bottom‐line wind‐fall for the company through reduced turn‐over. Some companies spend as much as$100,000 on a new hire the first year, withsalary, benefits, and training. Given that fig‐ure, investing in someone who has alreadycommitted to theRMIprofession justmakesgoodbusinesssense.Aftertakingasmanyassix to eight insurance and riskmanagementcourses, they are much less likely to decidethey dislike the industry than someonewhohasnevertakenevenone.

Third, RMI students

havealreadyprogressedalong the industrylearning curve. Stu‐dents from an RMIprogram show up fortheir first day ofworkwith at least someknowledgeofwhattheorganization, its busi‐ness partners, and itsclients do, and theyunderstandbasicinsur‐ance concepts andmuch of the terminol‐ogy. This makes themeasier to train andallows for faster and

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smoother integration into the existing work‐force than otherwisemight be possible. As aresult, they are likely to become productivemembers of your organization much soonerthanmostnewemployeeswithouttheeduca‐tionRMImajorsreceive.

Curriculum:WhatDoRMIMajorsLearn?

MostRMIprogramsreside inbusinessschoolsthat have core business curriculum require‐ments (e.g., accounting, economics, finance,management, and marketing). Thus, RMImajors should have a good understanding offundamental business concepts with concen‐tratedknowledgeinRMI.Fromthere,programsvaryintermsofthedegreeoffered.Someofferabachelorofscience(B.S.),abachelorofbusinessadministration(B.B.A.),orabachelorofscienceinbusinessadministration(B.S.B.A.).

ThebreadthanddepthoftheRMIcurriculumvaries considerably from school to schooldependingonthenumberofstudentsandfac‐ulty involvedwith the program. Smaller RMIprograms will generally require students totakefourorfivecoursesthatdealdirectlywithtopics in RMI, while larger programs mayrequiresixtoeight.

AllRMIstudentswilltakeaprinciplesofinsur‐anceclass that focusesonbasicconcepts.Thisincludes topics such as elements of insurablerisk,thetypesofinsurance(e.g.,lifeandhealthversus property and casualty), how and whyinsuranceisregulated,thefunctionsofinsurers(e.g., ratemaking, underwriting, and claimsadjustment), the risk management process,basic insurance lawprinciples,andhowinsur‐anceismarketedandsold.Fromthere,theywilltypically take a selection ofmore specific and

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detailed courses covering property, casualty,life,andhealth insurance, thequalityofwhichwillvaryfromschooltoschool.Manyalsoofferoneormoreriskmanagementcourses.

Some schools offer a senior‐level capstonecoursethatrequiresstudentstoanalyzeacasesituationinvolvingeitherahypotheticalorarealbusiness.Thewrittenprojectsproducedintheseclasses can range from 10 pages to over 50,dependingupontheprofessorandthestudent.

Three examples of curriculums from EastCarolina University, Florida State University,andUniversityofGeorgiaareshowninTables1,2,and3,respectively.

Table 1East Carolina University’s

RMI Curriculum

B.S.B.A. in Risk Management and Insurance

Required courses

✦ PrinciplesofRiskManagementandInsurance

✦ CommercialLiabilityInsurance

✦ CommercialPropertyInsurance

✦ RiskManagementI

✦ AdvancedInsuranceTopics

Students then choose 1 of the following

✦ RiskManagementII

✦ Investments

✦ InsuranceMarketOperations

✦ TopicsinFinance

✦ ServicesMarketing

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Programs offered by The Institutes and theNational Alliance for Insurance Education &Researchalsomakeitpossibleforstudentstograduatewithcreditforoneormorepartsofa professional designation series such asChartered Property and Casualty Under‐writer (CPCU) or Certified Insurance Coun‐selor (CIC). Some professors even provide

Table 2Florida State University’s

RMI Curriculum

B.S. in Risk Management and Insurance

Required courses

✦ RiskManagementandInsurance

✦ LifeandHealthInsuranceProducts

✦ PropertyandCasualtyInsuranceProducts

✦ PropertyandCasualtyInsuranceOperations

✦ CommercialRiskManagement

Students then choose two of the following courses

✦ EmployeeBenefitPlans

✦ AdvancedPropertyandCasualtyInsurance

✦ WealthManagement

✦ LegalAspectsofInsurance

✦ RiskManagement/InsuranceInternship

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grade incentives or study sessions to helpstudents prepare for such exams. Industrysupportisalsoavailableinsomeareastopro‐vide scholarships that cover exam fees andbooks for professional designations. As aresult, it is not uncommon for students tograduatewithtwoormorepartsoftheCPCUor CIC program behind them. Additionally,the general business courses they take pre‐pare them for additional CPCU courses, andyouarewisetoencouragerecentRMIgradu‐ates you hire to take them early—while theknowledgeisfresh.

Table 3University of Georgia’s

RMI Curriculum

Bachelor of Business Administrationin Risk Management and Insurance

Required courses

✦ RiskManagementandInsurance

✦ CommercialPropertyandLiabilityInsurance

✦ EmployeeBenefits

✦ CorporateRiskManagement

Students then choose one of the following courses

✦ TheTheoryofInterest

✦ LifeInsurance

✦ AdvancedPropertyInsurance

✦ AdvancedLiabilityInsurance

✦ InsurerOperationsandPolicy

IRMI® Insights

EnsuringtheBestHire

RMIprofessorsengagedwithandinterestedinthewelfareoftheirstudentscanpredict,withconsiderableaccuracy,whichRMImajorswillsucceedandwhicharelikelytodropoutoftheindustry.Theirinsightscanbeinvaluable.Thekey is to find those professors and maintaincommunicationwith thembeforemakinganyjob offers to candidates. Some of the biggesthiring mistakes result from employers notcheckingwiththeRMIfacultybeforehiring.

Many years ago, a young man came into myclassroom with considerable bounce in hisstep and what can only be described as anextremelycockyedgetohisdemeanor.Hewasfull of himself that day because he had justbeen offered a job with First Fidelity MutualAutoInsuranceCompany.1Iknewthestudentandwas familiarwith the insurer, and I alsoknew theywere definitely not a goodmatch.The fact that the company hired him wassomewhatofasurprisetome.

Ittookjust3months,rumorsofpossiblesex‐ualharassment,andthethreatofalawsuitforthe company to learnwhat I could have toldtheminthebeginning:thatparticularstudentlackedthematurityandattributesrequiredtosucceedintheinsurer’scorporateculture.

EventhelargestRMIprogramsinthecountryare still small enough thatmost facultyknowtheir students prettywell. Educate those fac‐ulty a bit aboutwhat you’re looking for, andoddsarethere’saprofessorwhocanpointyou

1Companynamechangedtoprotecttheinnocent.

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in the right direction. They want to find theperfect match for students, not only becausethat’s essential for the student’s success, butthey also want you to come back again andagaintohiremoreofthem.

WhereAretheRMIPrograms?

Somecollegesanduniversitiesoffer insuranceor risk management courses as part of theirbusiness education curriculums. At most ofthese schools, one or two courses might beoffered that allow a student majoring inaccountingorfinance,forexample,togainsomeexposure toriskand insurancetopics.Amuchsmaller number of schools actually offer adegree, aminor, or a fullmajor in RMI. Obvi‐ously,thosestudentswhoactuallymajorinRMIwillbetheonesmostcommittedtotheindustryandwiththemostknowledgeofinsuranceandriskmanagementconceptsandterminology.

IRMI publishes a detailed Directory of RMIPrograms at U.S. Colleges and Universities,including information on how to contactthem. If you have suggestions for additions,deletions, or corrections to the list, pleasecontactIRMI,andtheywillbeconsideredforafutureupdateofthedirectory.

Affiliation with any of these academic pro‐grams can provide first access to the besttrained talent available in terms of collegegraduates.It’sagreatinvestmentfromahiringstandpoint with the extra benefit of buildingyourcompany’sbrandwithallthosestudentsand professors (all of whom buy or will buyinsuranceinthenearfutureforthemselvesorpossiblyeventheiremployers).

IRMI® Insights

AssessingtheQualityofanRMIProgram

There isnomagicmeasureofqualitywhen itcomes to any college degree program. Thereare some published rankings of programs inRMI, but they have some limitations. Some‐times they even include RMI programs thathaven’t been actively producing undergradu‐atemajors foryears intheir“nationallyrank‐ing”program!Thisbegsthequestion,“Whatisreally important in assessing the quality of acollegiateprogram?”Thequalityofaneduca‐tionisdifficulttomeasureuntilafterthefact,butcertainfactorswillprovideanindicationofaprogram’squality.

AccreditedCollegeorUniversity

Ataminimum,anyschoolunderconsiderationshouldatleastberegionallyaccredited.Thereare several regional accrediting bodies thatoverseeuniversities forqualityandacademicrigor.Thereisalsoaninternationalaccreditingbodythattypicallyhasmorerigorousaccredi‐tationstandards.Theinternationalaccrediting

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Access the Glossary of Insurance and Risk Mat absolutely no cost. With definitions of mof hundreds of  risk  and  insurance  acronymmost complete and current insurance gloss

RMI  professors:  Link  to  the  glossary  on  yresource available to your students. 

A print edition of this insurance and risk ma

organizationforbusinessschoolsistheAssoci‐ation to Advance Collegiate Schools of Busi‐ness.AlistofregionalandnationalaccreditingagenciesisavailableontheU.S.DepartmentofEducation’swebsite.

Long‐TermCareerSuccessofGraduates

Thebestsourceofinformationaboutthequal‐ity of a program is the graduates who havebeen through it.Anassessmentof careersuc‐cessat5,10,and15yearsaftergraduationwillgive some indication of how well trained thestudentswere in the beginning. Also, taking alookathowstudentsspeakabouttheireduca‐tionandrateitcanprovideinvaluableinsightsinto a program’s quality. Most any reputableprogramshouldbeable toprovide thenamesand contact information of a few alumniwhocanspeakabouttheprogramanditsmerits.

QualityofFaculty

As every practitioner knows, no amount ofdegrees or letters at the end of someone’snamemakesthemreal‐worldsavvyorensures

e Glossary

anagement Terms on the IRMI websiteore than 3,200 terms, and translationss  and  abbreviations,  it  is perhaps  the

ary available anywhere. 

our  department website  to make  this

nagement glossary is also available.

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anabilitytoprovideasolid,qualityeducationtoa20‐year‐oldcollegestudent.Quitefrankly,manyuniversities(especiallythetop‐tier,“big”schools) don’t encourage faculty to pursuepractical training in business fields. Whatthose schools expect is “basic” academicresearchpublishedin journals thathave littleornopracticalapplicationintheRMIworld.

Ithinkthebestwaytogaugethefacultyissim‐plytomeetthem.Talkaboutwhat’simportant,includingtheotherfactorsthatarelistedhereandtheirbackgroundandeducation,andlearnabout their philosophyon teaching.Here is akey question to ask yourself: do the facultymembersseemhappytomeetyouandexcitedabout sharing the program information with

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you?Orweretheytoobusytomeetwithyou,talkonthephone,oratleastcorrespondwithyoubye‐mail?Ifthat’sthecase,youcanproba‐bly assume they are also too busy to engagewithstudents,andthat’sneveragoodsign.

WhoTeachestheClasses?

Anotherareaforconsiderationiswhoteachestheclasses.Geta listof therequiredcourses,find out who usually teaches them, and thencheck their credentials. There are typicallythree types of instructors used at the collegelevel: full‐time faculty, adjunct faculty, andgraduatestudents.

✦ Full‐time faculty. Full‐time faculty usuallyhave tenure or are on the track towardachieving tenure and hold a Ph.D. or aD.B.A.2 Some hold advanced professionaldesignations (e.g., CPCU, ARM, CRIS, orCIC),whichisagoodsign.

✦ Adjunctfaculty.Thesearepart‐timefacul‐ty hired to teach a particular course orcourses.Atanaccreditedschool, theywilleither have a master’s degree, or they’llhavemanyyearsofrelevantpracticalexpe‐riencecoupledwithsomeadvancedprofes‐sionaldesignations.

✦ Graduate students. Graduate students aretypically pursuing a Ph.D. and are oftenusedtoteachundergraduateclasses.Manyhavereal‐worldexperience theycanbringto the classroom and some have obtainedor are working toward advanced profes‐sionaldesignations.

2Ph.D. is doctor of philosophy, and D.B.A. is doctor ofbusinessadministration.

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ThereisnomagicformulatobecitedthatXpercent of classes should be taught by full‐timefaculty,andYpercentshouldbetaughtby adjunct faculty. A Ph.D. who has neverworkedininsurancemayhavetakenstepstogeteducatedabout the “realworld”enoughto be very valuable in the classroom. Anadjunct lecturer with 20 years of “real‐world”experiencemaybeapoorcommuni‐catorwhocannot transferhisorherwealthof knowledge to the students. A graduatestudentmaybepursuingaPh.D.forthesolepurpose of becoming a researcher and thusmayhaveverylittle interest indealingwithundergraduates. So how do you assess thequalityoftheinstruction?

Inadditiontotalkingwithformergraduatesoftheprogram, Internetsitesallowcurrentstu‐dents to rate their professors. Understandingthatthesesitestendtogeneratethemostposi‐tive comments as well as the most negativeones (a student has to feel pretty stronglyaboutsomeonetotaketheextrastepofevalu‐atingafacultymemberonline),thesecanpro‐vide some valuable information about thequality of the teaching. The most commonlynotedoneisRateMyProfessors.

Many professors now put their curriculumvitae online. Peruse those and look for evi‐dence of outstanding teaching awards andcommendations. Also look at any postedcoursesyllabiandprojectinstructionstogetafeel for the kind of rigor the professor isdemandingfromstudents.

Lastly, at many schools, a faculty member’steachingevaluationsareavailableforviewing(theyareusuallysubjecttotheOpenRecordsAct).Itispossibletoasktoseethose.

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Whenreviewingrecordsofopiniononapro‐fessor’s teaching, remember that professorswho demand a lot may take an inordinateamount of criticism from students who havenodesiretoworkhardinschool.Thebestwaytojudgeevaluationsacrossdifferentclassesorsemesters is to look for recurrent themes inthe comments. If you constantly see “caresaboutherstudents”or“reallyknowshisstuff,verysmartguy,”that’sfarpreferableto“Whyis this person even a teacher?” or “refuses tohelpstudentsunderstandthematerial.”

JobPlacement

Askthissimplequestion:“Ofthestudentswhoareemployable,3howmanyhavejobsatgraduation?”

3Someonewhoisunemployableandwhosesuccessreallyshouldn’t be factored into the school’s placement ratemightbeapersonwithafelonyrecordorwhohasdem‐onstrated a refusal to grow professionally in terms ofethicalbehavior.Thereshouldbeveryfewofthese.

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Thedemandforyoungpeopleinourfieldhasbeenatarecordhigh,andmypeersatotherinstitutions and I agree that there’s a near100 percent employment rate for studentswho are employable. In today’smarket, any‐thing less than that is really surprising andshould make you question the quality of aprogram. Also, find out what kind of careerservicesarebeingofferedtostudentsbeforeandaftergraduation.

One word of advice on hiring—hire early!Many of your hiring competitors begin therecruiting process 8 to 9months in advance.May graduates are oftenwooed, interviewed,andhiredbyDecemberofthepreviousyear.Itpaystostartearlyforthebesttalentselection.

Internships

Internships offer a greatway to “test‐drive”students before actually employing them.Youcanputstudentstoworkinyourorgani‐zationtoseehowtheyperformandhowwellthey fit into your culture. This also allowsstudents to learn your organization andgaugewhetherornotitisonebywhichtheywould like tobeemployed. If they likeyourorganization, you will have little troublerecruiting them upon graduation. If theydon’t fit in, you avoid an expensive hiringmistake. Internships offer win‐win proposi‐tionstobothemployersandstudents.

Depending on your area of the country, youshouldprepare topayanabsoluteminimumof$10anhourforanintern.Interns’salariescan be as high as $20–$25 per hour withhousing provided. And by all means, startrecruiting early for interns! If youwaituntilApril to look for summer intern candidates,youarelikelytomissout.

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WhytheScarcityofRMIPrograms?

Giventhesignificantrolethatinsuranceplaysin the economy, doesn’t it seem strange thatthere are only a couple of dozen truly dedi‐cated RMI programs in the United States? Ofcritical importancetothefutureofourindus‐try and its talent supply is encouraging theongoingsuccessoftheexistingRMIprograms,as well as encouraging new programs whenandwherewecan.

Insurance,likerealestateorfinancialservices,is considered a “specialty” program in aca‐demia.Sometimesreferred toasa “boutique”program, these are easy to cut when budgetcrunches hit.Most public universities look atonlythenumberofwarmbodies intheclass‐roomstoday,ratherthanhowquicklyandeas‐ilythestudentsfindemployment,thepotentialforgrowthofanacademicprogram,orwherealumniultimatelyendupworking.

There has been considerable growth in RMIprograms over the last decade. East CarolinaUniversitybeganitsprogram“fromscratch”inthefallof2009andhasgrowntoover80stu‐dentstoday.Itdoesmyheartgoodtoseenewprogramscontinuingtopopup—UniversityofTexas at Dallas launched its new program inthefallof2015.

MostschoolscreateanRMIprogrambecausethe insurance industry demands it. Theagents, brokers, and insurers speak out in aunifiedvoicetosay,“Wevaluethis;weneedit; and we’ll support it.” East Carolina, forinstance, began its program with a sizeableendowment fromtheIndependent InsuranceAgents of North Carolina and continues toenjoy generous support from the agents as

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well as the North Carolina Surplus LinesAssociation.

Interestinglyenough,collegiateinsuranceedu‐cationhasabenefitother than justsupplyingtalenttotheindustry;italsohasthebenefitofimproving our industry’s image and reputa‐tion. Wells, Epermanis, and Gibson (2015)found that just one class in insurance signifi‐cantlyandpositively improvesperceptionsofthe property‐casualty insurance industry.Since many business students will take aninsurance class as an elective, this enhance‐ment of the industry’s reputation can causestudentswhoarenotRMImajors tobemoreeasilyrecruitedintotheindustry.

Ifyoucareaboutkeepingprogramslikethesealive,startmakingyourvoiceheard.Herearetheways you can reallymake a difference insupportingandencouragingRMIeducation.

✦ Find the program in your area, get toknow the faculty, and make sure theyknowwhoyouare.Asktositinonaclasssometimeandmeetsomestudents. Inviteaprofessor togowithyoutoa localpro‐fessional association monthly meeting.Evenjustanoccasionale‐mailornotethatincludesaninterestingarticleabouttrendsin the industry will keep your name intheirminds.

✦ Give the students first shot at any part‐time or temporary jobs for which theymightbequalified.Sendthejobpostingtotheprofessor,andaskhimorher topostit. Students often need extra money andarewillingtoperformavarietyoftasks.Ihave seen students bartend and serve atprivateparties,helpwithmovingahouseoranoffice,babysit,andevensavetheday

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when an emergency receptionist wasneeded.Youmightbecomesomestudent’snew hero, and you might find a steadyworkerintheprocess.

✦ When you have full‐time positions to fill,include the professors in those postings.Theymayknowanalumnuswhohasjustthe amount of experience you seek. Butdon’tsellshortan“inexperienced”collegestudent, either. You may find exceptionalmaturityandrefinedskillswhereyouleastexpect them. Even if you don’t find therightperson this time, you’ve stilldoneaservice in termsofpromotingopportuni‐ties in our industry and with your firm.When students sense there is a goodchanceforrewardingemploymentassoci‐ated with a particular major, they willgravitate toward that major. Therefore,hiring RMI majors—or even attemptingto—will encourage younger students toconsiderpursuinganRMIdegree.

IRMI® Insights

✦ Participateinschool‐sponsoredeventsevenwhenyouaren’thiring.Beasvisibleasyoucanonthecampus,sothatadministrators,professors, and students are remindedthereisopportunityandinterestinthein‐suranceindustryforgreattalent.Thispro‐vides theaddedbenefitofpromotingyourbrandwiththeseyoungpeople.

✦ Volunteeryourtimeandyourcompanyre‐sourceswhenyoucan.Thefollowingareafewexamplesofwaystohelp.

✧ Offer to host an intern for a day or asummer.

✧ Mentorastudentbyinvitinghimorhertolunchonceamonth.

✧ Whenlitigatingaclaim,inviteaclassofstudentstositinthecourtroomandob‐servehow“real”insurancelawworks.

✧ Talktothefacultyandfindoutexactlywhatprojectsandactivitiesneedfund‐ing and make that support a regularpartofyourcompany’scharitable,mar‐keting,orrecruitingbudget.

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✧ When you’ve just wowed a group ofemployeesor investorswithapresen‐tation, send a copy to the professors.Seeiftheyneedthatsamepresentationgiventoaclass,butdon’tbeoffendediftheydecline your offer. Professors arebombardedwiththeseoffersandhaveto say no tomost, but sometimes thetopic you can present is exactly whatthecoursecurriculumcallsfor.

✧ Share the juicy details of a reallybizarre claim (names excluded, ofcourse)withaprofessorwhocanuseitasanexampleinclass.

✦ Makeitaperiodichabittowritealettertoone university administrator expressingyoursupportfordedicatedRMIeducationprogramming. Copy the chancellor, thepresident, theprovost,or collegeofbusi‐ness dean, and even themembers of theboardofregents.

If the school has an RMI program, tellthemhowmuchyouappreciate it. If theschooldoesnothaveone, tell themhowmuch you would appreciate one if theybuiltit.Attheveryleast,encouragethemto offer an introductory principles of in‐surancecoursetostartteachingstudentsaboutthisfascinatingindustrythatoffersformidablecareeropportunities.Theben‐efits of such a course offering aremoreinformed consumers, enhanced industryimage, easier recruiting, and better jobcandidates.

Whenyou’verunoutofpeopletowritelet‐tersorsende‐mailstoatthelocaluniversi‐ties and community colleges, start on the

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high schools. Let their career counselorsknowaboutalltheopportunitiestherearein this industry that the uninformed con‐sider “unsexy.” Make yourself available tovisitwithstudentswhomaybegoodcandi‐datesforjobsinthefield.

Let your state’s board of higher educationand your state legislators know howimportant these programs are, too. Eithersendaletterdirectlytothemorcopythemonthelettersyousendtoothers.Bediligentabout this exercise because the squeakywheel in an education bureaucracy oftengetsthegrease.

✦ Encourage your trade groups and profes‐sionalorganizationstosupportandpromote

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RMIeducationinyourarea.Whetherit’salo‐calCharteredPropertyCasualtyUnderwriter,CharteredLifeUnderwriter,CertifiedFinan‐cial Planner, Risk and Insurance Manage‐ment Society, or other association chapter,there is strength in numbers. Invite stu‐dents to your conferences. Treat studentstolunchatyourmonthlymeetings.OffertodevelopamentoringprogramforbuddingyoungRMI expertswho are still finishingtheir degrees. Seeing a group of profes‐sionalswhoareenthusiasticandenergeticabouttheircareersgoesalongwaytowardencouraging undergraduate students tochooseonemajoroveranother.

✦ Whenmakingdonationstoacollegeoruni‐versity, earmark your donation specifically

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ment  and  insurance  information  to  corpora‐

ndustry. This information is developed by the

insurance reference publishing in partnership

th us. We take great pride in giving you up‐to‐

nd solutions to help you succeed and prosper

vironment. You can obtain this information in

e publish  in a variety of print and electronic

, and our webinars and conferences.

s 

eference Publications

xam Prep) Courses

ucation (CE) Courses

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rences

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IRMI® Insights

to RMI programs at your chosen school.Universitiesdonotroutedonationstosmallprogramsunlessinstructedtodoso.IfyourchosenschoolhasalargeRMIprogram,youmaywant to go even further to determinewhich of several possible scholarship orproject fundsaremost inneedof support,and then designate your contribution forthatspecificfund.

Anddon’t think of this giving as charity,but instead think of it as part of yourrecruitingoradvertisingbudget.Thedol‐lars you spend on having name recogni‐tion with tomorrow’s college graduates,

13

Opinions expressed herein are those of the author and are not nection does not give legal accounting, or other professional advice. tant, or other qualified adviser.

Copyright 2015. All RInternational Risk Manag

12222 Merit Drive, Suite 1600 • Dallas, TX 7

particularly RMI graduates, will be verywellspent.

Conclusion

Our talent “cliff” still looms ahead, but muchprogress has been made to avert (or at leastreduce)theimpendingdisaster.Moreandmoreindustry professionals are hiring from dedi‐cated RMI programs and letting universityadministrators know that RMI programs areimportant.SupportforRMIhighereducationis,inmyestimation,ata25‐yearhigh.PleasekeepthatmomentumgoingbysupportingyourlocalcollegiateRMIprogram!

Sources:

Cole, Cassandra R., and Kathleen A. McCullough. “The Insurance Industry’s Talent Gap and Where We Go

From Here.” Risk Management and Insurance Review 15, no. 1 (2012): 107–116.

Karl,  J. Bradley and Brenda Wells. “Improving Perceptions of  the  Insurance  Industry: The  Influence of

Insurance Professionals.” Risk Management and Insurance Review (forthcoming, 2015).

McKinsey and Company. 2010. Building a Talent Magnet: How the Property and Casualty  Industry Can

Solve Its People Needs. http://www.aamga.org/files/hr/BuildingaTalentMagnet.pdf.

Wells, Brenda, Karen Epermanis, and Jack P. Gibson. “The Effect of Insurance Education on Consumer Atti‐

tudes: A Study of the Property/Casualty Industry.” Journal of Financial Education (forthcoming, 2015).

essarily held by the author’s employer or IRMI. This publica-If such advice is needed, consult with your attorney, accoun-

ights Reserved.ement Institute, Inc.

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