May 4, 2016
Today’s Risk and Insurance Industry: An Interview
By Brenda Wells, Ph.D., CPCU, AAI, CRIS
Robert F. Bird Distinguished Scholar of Risk and Insurance
The risk management and insurance concentration in the ECU College of Business (COB) continues to grow and thrive, as students find unlimited opportunities for employment. Our graduates are enjoying a near 100% employment rate within six months of graduation, and most students have a job lined up before graduation. I recently sat down with The Insurance Shop President and CEO Walt Capell to talk about why this industry is so promising for ECU COB graduates.
Walt Capell, President & CEO
Why is the insurance industry a good field for todays’ graduates?
Many people who work in this industry are in the age group of 50-65 years old. Studies show the average age of an insurance agent is now 59 years of old. In the next 10 years there are going to be thousands of professionals who need to be replaced in the industry. Also, millennials are beginning to get to the age where they are becoming business owners and are a target demographic in the marketplace. Insurance agencies and carriers are going to need millennials on their staff in order to better relate to this target market. A great example of this would be a person in their late 20’s helping an insurance agency develop a better website for people to purchase insurance via mobile. An agent in his late 50’s might struggle with that task.
What are some skills that are ideal for success in the insurance industry? 
Like most things in life, effective communication and people skills are a must. No matter what role you are going to take in the insurance industry you are going to have to interact with other people. Regardless of whether you are in a business to business setting or a business to consumer relationship you are going to have to interact with people and frequently interact with them when they are not happy.
What do young professionals not understand about the insurance industry?
I think a lot of young professionals do not realize how much people skills come in to play on a daily business in the insurance industry. You are working with business owners and each business owner has their own priorities. Some want the coverage in place and they want it fast so they can get back to running their business. Some business owners do not mind if the process of buying commercial insurance takes a couple of weeks and they want to find the absolute cheapest rate possible. Some business owners want the most complete coverage possible. Being able to determine their priorities quickly and adapting your style to their needs is essential to long term success.
What are some issues that are going to become more a part of the insurance industry in the near future?
The biggest issue facing commercial insurance right now will be how the states make changes to their workers’ compensation systems over the coming years. Currently Workers’ Compensation is required by law in in 48 out of 50 states. The Oklahoma and Texas Workers’ Compensation Systems have opt-out provisions where some businesses are allowed to not carry coverage at all. A few other states are looking at implementing an opt-out provision into their system, but most states are taking a wait and see approach. How this plays out could affect the commercial insurance market drastically.
Cyber Insurance is going to flood the market for the next 5 – 10 years. This part of the industry is so infant many carriers are still easing in to quoting it because of a lack of data when it comes to the costs for claims. The threats to businesses in the realm of cyber security are only going to get greater and greater with time. With that will come an increased need for proper protection for this type of liability.
Are there any certifications or courses you recommend for people wanting to break in to the insurance industry?
Getting licensed is one way to show a potential employer you are committed to the profession. There are courses that help with the exam. With only putting in a little bit of time studying and taking exams, a person can become an agent for only a few hundred dollars. Now many companies do offer assistance programs for repaying license fees. Usually you have to stay with the company for 90 days, 6 months or some other set amount of time in order to get the fees reimbursed.
Also, most new agents need to be aware that most companies pay agents on a commission basis. Until you have built up a decent book of business the job is not that high paying. New agents should expect this time period to take anywhere from a few months to realistically more than a year. Now most companies do have some type of base salary on top of a commission that they will start agents out on. As the agent builds up their book of business that base salary becomes less or goes away all together. These are things young professionals need to be aware of.
More information about Walt’s company, the Insurance Shop, can be found at www.insuranceshopllc.com