Protecting the Future

Lisa Johnson admits an insurance career can be challenging — and a constant learning experience.

“Even our veterans will tell you, nobody knows everything about insurance. They’re learning something new every week — from each other and from formal education,” said Johnson, chief operating officer of Encharter Insurance in Amherst. “We make sure we have people taking classes every year. We incentivize learning; it improves our businvess.”

And that goes double for new employees; even after landing a job, she said, it takes about a year of training to fully ramp up on personal lines, and three years on the commercial side.

“It’s a complicated business. As an agency owner, you have to be willing to put in the time and the energy to make sure people are getting the training they need,” Johnson told BusinessWest. “Sometimes people underestimate the learning curve, and it’s tough to stick with it and get licensed and have a career. You’re dealing with a lot of regulations, it can be a very technical business, and it can be very overwhelming.”

That may not sound like the most appealing pitch, but there are rewards on the other side, she said.

“We have a career that’s not stagnant; you’re always learning new things, learning to manage obstacles, and that should be presented as an opportunity. It’s enrichment for your career. It’s furthering your personal value. This career offers exceptional long-term benefits, a lot of stability. It’s recession-proof, with a lot of variable and transferable skills like customer service and sales. I always tell people, a great salesperson will never starve.”

That said, according to a recent article in Insurance Journal, the Bureau of Labor Statistics projects that the industry will face approximately 21,500 job vacancies each year over the next decade, and “this growing talent shortage is compounded by a rise in the severity of claims and by the industrialization of plaintiff litigation. As veteran employees leave the workforce, the industry loses invaluable expertise. That creates a ripple effect of challenges for claims-management organizations.”

Lisa Johnson

“It’s a complicated business. As an agency owner, you have to be willing to put in the time and the energy to make sure people are getting the training they need.”

And that leaves growing agencies with a real challenge. John Dowd Jr., president and CEO of the Dowd Agencies in Holyoke, said recruiting may be more of a problem in the 413 than elsewhere.

“It has been a challenge for a long time to attract more people into this industry. I don’t think that’s unique to Western Mass., but compared to Eastern Mass. or more metropolitan areas, we just have fewer candidates that are drawn to the industry.”

Still, “I think it’s a great industry,” Dowd said. “We have many people come here to work with us, and most stay. Some don’t because they either don’t like it or they move to a different area, whatever the case may be.”

Recruiting the right people, those who will stick for the long term, has become so important, in fact, that the firm has, for the first time, hired a talent recruiter, as opposed to running ads in newspapers or working through headhunters.

“We’ve done those things for years, trying to attract people, both young people interested in the industry and seasoned people who have been in the industry for a period of time,” Dowd said. “Obviously, it’s easier to hire an experienced person to step in with minimal training and be effective at their job. But those people are not that easy to find. So a lot of times, we’ll say, ‘let’s recruit young people and train them and teach them our way.’ That way, they’re more likely to assimilate into our company’s culture.

“It is a great business, with a lot of different things you can do, depending on what your skills and interests are, and what your long-term ambitions are,” Dowd added, noting that the new recruiter will help build a pipeline of young talent. “We have multiple locations in multiple states. We’re going to have people retiring, people moving out of the area, and we have to fill those positions. We’re excited about this new role because we really think it’s going to help us fill positions and find better-qualified people — either experienced or inexperienced with lots of upside.”

Because of the training involved in hiring younger people, Johnson said, “it’s a huge savings if you can grab one of the seasoned people in our area, but I think it’s kind of a small group of people rotating from one agency to another.”

John Dowd

“Colleges typically don’t direct course curriculum to the insurance industry, and people don’t get introduced to it in high school or college unless they’re looking for that. And even then, it’s difficult to find courses specific to the insurance industry.”

So the industry absolutely needs an influx of young talent — and insurance careers can be appealing to them in a number of ways, she added.

“I do think it’s been a challenge in today’s labor market to find the right people. We’re competing with banks and other roles that appear more modern to younger candidates,” she said. “But it’s definitely an industry that is going to supply young people with a lot of upward mobility, particularly because they’ll bring their technical knowledge that some of the folks retiring don’t have.”

School’s Out

Part of the problem, Dowd said, is educational. “Colleges typically don’t direct course curriculum to the insurance industry, and people don’t get introduced to it in high school or college unless they’re looking for that. And even then, it’s difficult to find courses specific to the insurance industry.”

Considering that landscape, Sam Hanmer, president and CEO of Rush Insurance Group in Chicopee, said it’s valuable to work with community colleges and high schools to recruit through internships and generally expose students to opportunities in insurance.

“We have plenty of work, and they’re paid internships, so we hope we can get some young people to stick around,” he told BusinessWest. “We’ve even reached out to local high schools as well, creating opportunities for them. We want them to come work after school, do some data entry work, that kind of thing. We’re talking to guidance counselors about the potential for them to send over kids who are looking for after-school jobs.”

Sam Hanmer

“Depending on what side of the fence you want to be on, there’s also a lot of financial work, payables, receivables, billing, all of that. And as an agency, we also need IT support. So there are a lot of different areas.”

The problem, as noted earlier, is that only a handful of colleges in the country actually offer coursework in insurance.

Hanmer noted that the Isenberg School of Management at UMass Amherst has put together an insurance club — one more oriented toward the carrier side of the business, not the agency side, but it’s a start toward exposing more young people to career opportunities.

“These are good jobs; they’re actually very-well-paying jobs relative to Western Mass. It’s really about educating people, getting them interested in trying this career path,” he added. “And the interns, we’re paying $22 an hour to keep them engaged. Minimum wage is not going to keep them engaged.”

Dowd, obviously, had an unusual level of exposure to insurance, as his family has been in the business for 128 years, and the business now includes the fifth generation of company leaders.

“I had plenty of introduction to the industry, and I always had an eye on it because it was a family thing. I watched my father and uncle over the years, and I went to work right out of college for an insurance company in New Jersey as an underwriter.”

That said, “I knew being an underwriter wasn’t something I wanted to do for the rest of my life, so I came back and joined the agency as a salesman. I knew that was the area I wanted to focus on. I liked interacting with people, helping them sort through the complexities of the insurance business and insurance policies.”

That movement speaks to one of the draws of an insurance career, Hanmer said.

“Insurance is a lot of contract law, and you get to learn a lot of insurance policy,” he said. “But, depending on what side of the fence you want to be on, there’s also a lot of financial work, payables, receivables, billing, all of that. And as an agency, we also need IT support. So there are a lot of different areas. Someone could come in and hang around and say, ‘hey, there’s an area I want to potentially continue my career path on.’”

Dowd agreed. “What I say to them is, ‘look, there are a lot of different things you can do in this business. You can be in customer service as an account manager, or be on the claims end of things, or be on the accounting end of things, or be in sales, or start as a receptionist and work your way up,’” he explained. “We’ve had some of our best people start as receptionists and work their way up to senior account manager positions or claims directors; it’s really about how ambitious you are, and we nurture them along the way.”

In fact, three current employees in leadership roles started as receptionists, he noted. “They’re thriving, and they’re happy, and we’re happy with them.”

Of all those roles, salespeople may be the hardest to find, Dowd said. “Or, I should say, good salespeople. Everyone thinks they can sell until they find out how hard it is. But it’s easier if you like people, if you’re ready to work hard, and if you’re patient, knowing you have to work your way through and gain experience and gain the confidence of clients. That takes time.

“You have to have perseverance and dedication to the process, becoming a student of the business, to be an effective service professional and service customers far and wide,” he went on. “If you are of that personality and have that dedication, you can thrive in our business.”

Johnson also has senior employees who started as receptionists, so she can testify to the opportunities for advancement.

For most young recruits, she noted, “whether they’ve just come out of high school or they have a PhD, we’re still training them from square one. Typically, our agency is looking for people with experience, but it’s not that we don’t take people without experience — we have done quite a bit of that.”

Youth Movement

Hanmer told BusinessWest that the insurance business may not be flashy enough for teenagers considering career paths, and they’re more likely to gravitate toward more technology-oriented fields.

“Insurance is not tech-heavy, although it’s evolving,” he noted. “So I don’t think insurance is exciting enough for them, and it’s too bad because it’s a great business. When I find a young person and I can bend their ear for a minute, I encourage opportunities to be in the insurance world.”

The Insurance Journal article argues for better efforts at understanding the workplace needs of younger generations, which include remote work, modern tools and technology, a collaborative environment, and clearly outlined core corporate values.

Johnson said Encharter has cultivated an environment that not only values constant learning, but the importance of relationships.

“It’s a person-to-person business, and that’s how you build relationships. I can’t overestimate how important that is,” she explained. “Also, if they think they’re valued and what they do matters, it’s a much more rewarding career — and that’s something we build on with that team environment.”

Dowd said agency leaders check in with new hires 90 days after onboarding process, “to find out not only how they’re doing, but how we’re doing. Are we living up to the promises we made, to the commitments we made, to provide training and support so you can thrive in your new position?

“It’s a great business because you meet all kinds of new people and learn about businesses of all types, inside and out, and the clients become your friends. Oftentimes, you can have decades of relationships with these people who really become your friends,” he added.

“I say to every one of them, ‘we want you to retire here.’ We’re proud when we can see somebody employed and happy. I always say, ‘we can’t do it without you. And together, we can survive and thrive in a competitive industry.’”