Developing Young Talent: A Vital Task for the Long Term
November 2002
Robert Giles takes a broad look at the future
of both wholesale and retail agencies by examining three key elements to professional
development: education, recognition, and networking.
by Robert
S. Giles, CIW
American Association
of Managing General Agents
The basis of the American agency system is long-term relationships based
on mutual benefit and mutual trust. Insurance companies, wholesale agents, and
retail agents all work most comfortably, and most profitably, with people they
know they can depend on.
Many independent agencies on both the wholesale and retail levels have benefited
from business relationships that have endured for more than a generation. That
kind of longevity can pay rich dividends, but it requires a special level of
commitment. A big part of that commitment is the identification and development
of young talent in both retail and wholesale agencies.
Nurturing and developing young professionals for future leadership roles
cannot be left to chance. Doing it right requires a specific plan for professional
development, and investing the time and money to carry it out.
For their own benefit, young people who want to advance in the industry need
to identify the steps they need to take to enhance their career prospects. But
senior management within each agency also has to look to the future, and work
with their emerging young talent to ensure the longevity of the agency and the
business relationships that are the agency’s lifeblood.
There are three key elements to professional development: education, recognition,
and networking. While I will discuss each of these elements separately, it is
important to keep in mind that all three are interrelated and interdependent.
Education
Education in the industry never ceases. The major professional associations
offer ongoing educational opportunities geared to the specific needs of their
agencies. These include continuing education programs offered by associations
such as the state chapters of the Independent Insurance Agents of America (IIAA,
the “Big I”) and AAMGA University, the educational arm of the American Association
of Managing General Agents (AAMGA).
Ongoing continuing education opportunities on specific topics are important.
Agencies that want to maintain a high level of expertise and keep up with the
ever-changing insurance marketplace take advantage of these opportunities regularly.
But the real keys to career development are professional designations, such
as Certified Insurance Counselor (CIC) sponsored by The Society of Certified
Insurance Counselors, Chartered Property Casualty Underwriter (CPCU) administered
by the American Institute for Chartered Property Casualty Underwriters, and
Certified Insurance Wholesaler (CIW). Professionals who earn these designations
develop the knowledge and expertise required of those who will fill leadership
positions in the future.
CIW or Certified Insurance Wholesaler, for example, is one of two individual
professional designations conferred by AAMGA University. The other is CWIS,
or Certified Wholesale Insurance Specialist. These designations are granted
in recognition of a commitment to education and professional development, demonstrated
by completion of a curriculum composed of both university and non-university
courses, and successful completion of a peer-reviewed research project.
Just as important as the education these designations represent is the reassurance
they provide. In an industry built on trust, the independent recognition of
knowledge and commitment that these designations indicate assures potential
business partners that they will be dealing with a seasoned professional.
As for college, a bachelor’s degree in a business major is generally considered
a prerequisite for an insurance professional with his or her sights on a management
position. Younger professionals sometimes want to know whether the pursuit of
a master’s degree in business administration is advisable. Generally, it is
best to first pursue an insurance-industry-specific designation, such as CIW
or CPCU. Those who want to pursue a top-level management position would be well-served
by an MBA degree as an additional career-builder.
No plan for advancement to a leadership position can be built on technical,
industry-specific information alone. There are qualities of leadership that
apply in any arena, from the football gridiron to the battlefield to the marketplace.
Those striving for leadership positions should seek out opportunities to learn
the basics of management and leadership. For example, such courses are a regular
part of the curriculum at AAMGA University.
Finally, it is important to remember that education is not something that
only happens in a seminar or classroom. Young professionals would do well to
seek out a seasoned senior manager who has achieved business success and won
the admiration and trust of his peers, and learn from his or her example.
Recognition
A patient facing life-or-death surgery is comforted and reassured by the
designation FACS, indicating that the physician standing over them with a scalpel
is a Fellow of the American College of Surgeons. That designation confirms for
that patient that the doctor has passed a rigorous program of training and testing
and has been judged to be competent and qualified by his peers—peers who recognize
the high value of that designation and therefore carefully police how and to
whom it is granted.
It is much the same with insurance professionals who have earned designations
such as CIW or CPCU. Because such recognition is neither earned easily nor granted
lightly, it provides valuable reassurance of the competency and character of
those who bear it with pride.
Make no mistake. It takes a significant investment of time and money to earn
these designations. They represent real achievement and are not easily won.
Individuals have to be prepared to invest a lot of time and energy. And agencies
have to be prepared to invest not just money, but also the time away from the
office their young professionals will need to pursue these designations. These
are wise investments that pay important dividends, but they are not small or
easy investments to make.
Networking
“Networking” is one of those buzzwords that so often become misused and overused
by people who don’t understand what it’s all about. In the agency system, however,
networking is essential for several reasons.
Networking is essential to learning and essential to trust. Through networking
with peers, valuable information about market conditions and the innovative
solutions peers have devised to meet emerging challenges can be shared. Peer
networking is one of the chief advantages of membership in organizations such
as Big I for retailers and AAMGA for wholesalers. Through these networking opportunities,
young people can gain valuable insights, ideas, and skills from veteran insurance
professionals and acquire a feel for the business and economic cycles that are
the nature of the industry.
Professional organizations also offer networking opportunities geared specifically
to rising young professionals. AAMGA, for example, formed the Under Forty Organization
(UFO) more than a decade ago to create a platform for young people in our industry
to meet, discuss common experiences and common problems, and learn from each
other. Many of these organizations also offer continuing education programs
geared specifically for younger professionals, designed to meet their unique
needs.
Opportunities for young people to develop relationships with their peers
through partnering organizations also exist. For example, through the Associate
Member program, the UFO also gives young wholesalers the opportunity to start
to form relationships with their peers in the partnering organizations, many
of which will last a lifetime. Through these relationships, these young professionals
learn to see “the other side” of a transaction and gain the invaluable ability
to look at a business situation from an alternative point of view. These relationship-building
opportunities help maintain the “unbroken chain” of mutually beneficial business
partnerships that carry over from one generation to the next.
The best of these young professionals’ groups help not just their members,
but their members’ agencies, keep up with the latest developments in our industry.
Members of AAMGA’s Under Forty Organization, for example, traveled to London
in July for an intensive 3-day session at Lloyd’s, meeting with underwriters
and brokers and gaining invaluable first-hand knowledge of the London market
and how it operates.
The Long Term
Senior management in every business needs to think about long-range strategic
planning. Where do they want that business to be, a decade or longer in the
future? Taking a realistic view, in many cases these senior managers won’t be
as active in the day-to-day operation of those agencies by the time this future
arrives. If they want their mark on that agency to be a lasting one, then they
need to prepare those who will step into those top management roles for the
challenges that lie ahead.
Today’s management needs to do more than just post notices about educational
and networking opportunities, or send out company-wide e-mail messages. They
need to “talk up” these opportunities to young employees, urge their “rising
stars” to take advantage of them, and even advise them on how to make the most
of the opportunities they get. Just as young professionals need to seek out
senior role models, top managers need to make themselves available as mentors
to the next generation.
Preparing the next generation of leaders is part of the job description for
senior management. It’s as essential as keeping professional licenses current.
If management does not groom the next generation of leaders for their agency,
they’re leaving the future to a roll of the dice.
Opinions expressed in Expert Commentary articles are those of the author and are
not necessarily held by the author’s employer or IRMI. This article does not purport
to provide legal, accounting, or other professional advice or opinion. If such advice
is needed, consult with your attorney, accountant, or other qualified adviser.