In an effort to address the workforce need locally, I and several of my agent and carrier colleagues approached Santa Fe College last year about starting an insurance program of study within Santa Fe’s business program.
Like my hair, the insurance industry’s workforce is turning grey in a hurry. Workforce development has become a priority in our industry, as a large percentage of employees of agencies and carriers in Florida are retiring and replacements are hard to find. Like with all challenges, however, this also creates a great opportunity for those looking for a new career. The purpose of this article is to highlight this opportunity and alert you to a brand new program locally that could help both our industry and hundreds of future employees.
According to a study by McKinsey and Company, the number of insurance workers age 55 or older has increased by 74 percent in the last 10 years. Further, almost 500,000 insurance professionals out of the existing workforce of 2.25 million nationwide will retire by 2018. Exacerbating the problem is that the industry is in growth mode. According to a 2014-2022 forecast from the Florida Department of Economic Opportunity, there will be 71,847 customer service positions (a 13.2 percent increase statewide and an 11 percent increase in Alachua and Bradford Counties specifically), 16,395 insurance sales agent positions (a 17.3 percent increase), 5,711 claims adjuster positions and 1,592 underwriting positions coming available in that 8-year period. Compensation for those positions is competitive according to that same report, with those jobs commanding an average starting hourly wage between $14.33 and $32.26, not including benefits. Further, according to the U.S. News & World Report’s 2015 Best Jobs list, these positions are highly rated with insurance agents ranked at No. 7, sales managers ranked No. 13, sales representatives ranked at No. 15 and customer service representatives ranked at No. 22.
With the combination of competitive compensation and highly rated employee satisfaction, you’d think we’d be flush with applicants. My conclusion is that we’re doing a lousy job making insurance appealing to the younger generation. On TV or the movies, we’re often depicted as either smarmy sales agents or nefarious claims deniers looking to wiggle out of an obligation. In addition to public perception, most positions require a license, which is a barrier to entry. Further, insurance coverage is complex and therefore becoming a competent professional takes years of study and practice.
That being said, the industry is vast in terms of opportunities and, if given the chance, should appeal to those with varying interests. Obviously, those interested in a career in sales have a wonderful opportunity in this business. Those who don’t want a career in sales but have a general desire to help people could find rewarding careers in customer service or claims. Those with a talent for math can find an extremely lucrative career as an actuary. And those who are tech savvy have plenty of opportunities in the growing IT and big data needs of our business.
Upon learning of the opportunity to place students in well-paid careers, Santa Fe got on board immediately and launched a three-course program that began this past spring semester. As a result of a new state law passed in this year’s legislative session, those completing these three courses and earning a two-year degree from Santa Fe will emerge not just with their degree but also with two insurance licenses. These graduates will be attractive potential hires for agencies like mine as well as large local insurance carriers such as Tower Hill, Nationwide and AvMed. We are hopeful that as this program matures, we’ll churn out dozens of newly licensed graduates every year who will find immediate employment opportunities locally.
As an 18-year veteran of the industry and third-generation agency owner, I can attest that this is an outstanding industry. I’m surrounded both in our agency and within the insurance carriers we represent by great people whose goal is to help others. If I can provide any further information to those seeking a new career or about the exciting new program at Santa Fe, please don’t hesitate to call!
Brian Scarborough is a Principal at Scarborough Insurance, an independent agency that sells all lines of insurance and has been serving the community since 1961. Visit scarins.com for more information.