After 35 years in the insurance industry, I’m retiring and I’m not alone. In fact, according to a U.S. Chamber of Commerce report, 50% of the current insurance workforce is expected to retire by 2036, or in the next 12 years.
The concern, of course, is who will fill our shoes. It’s a valid point when we consider that, according to this same study, less than 25% of the insurance industry is younger than age 35. The talent crunch has long been a top industry concern.
Fortunately, in the US we have organizations like the Spencer Educational Foundation, playing a big role in promoting and encouraging students who are studying insurance, risk management and actuarial science. Through collective industry efforts, Spencer has awarded more than $8.8 million in scholarships and over $8 million in grants to more than 70,000 students.
Like many, I may have entered the insurance industry ‘by accident’, but it is no accident that I stayed. After serving nine years in the U.S. Navy aboard a nuclear submarine, I parlayed my mechanical skills into a job as a boiler and machinery risk engineer. I haven’t regretted that decision for a minute.
Not all superheroes wear capes
I couldn’t retire without giving proper credit to an industry that provided me so many opportunities and experiences and has so much career potential for others.
Commercial insurance plays a crucial role in helping businesses manage risk and protection from the financial impact of unforeseen events. It’s critical to the local and global economies.
An industry friend once told me that, when asked by one of his children about what he did for a living, he responded that he and his company showed up anytime something went wrong anywhere in the world to help put things back together. After a little reflection, the son responded, “so you are a superhero.”
It’s never boring
The insurance industry is among the most stable sectors of the economy because it's essential to both individuals and businesses, but it’s never boring.
Every business relies on insurance. A career in commercial insurance, especially one with a global insurer like AXA XL, is not limited to a particular geographic location or sector. I’ve actually have seen more of the world in my insurance career than during my service aboard a submarine.
Another big plus - we work with every industry. And we have the opportunity to work with all sizes of businesses, from small startups to large multinational corporations.
The risks that each of these businesses face has grown more complex. There was no such thing as cyber risk when I entered the industry. Nothing was as connected as it is now; today, we work in a global marketplace where events in one part of the world impact so many others and where global supply chains can be disrupted by storms, political unrest, or pandemics.
As businesses continue to grow and diversify, the commercial insurance industry has had to step up to understand changing dynamics, assess new and emerging risks, and develop creative solutions to help business solve complex problems. As a result, it’s a field that offers a wide array of career paths, from traditional underwriting, risk engineering and claims management opportunities to newer jobs titles in data and analytics, modeling, technology innovation, A.I., and more that are yet to come.
We’re embracing technology
When I started, 'high-tech' meant electric typewriters. Fortunately, we’ve come a long way. Across the insurance sector, we are increasingly embracing technology.
Technology is revolutionizing how we assess risk, interact with clients, and manage claims, among other things. We’re using A.I. to adopt more efficient processes like how we streamline submissions. By developing new offerings like the AXA XL Ecosystem, we’re helping our clients vet and adopt new risk-reducing technologies. Through new services like AXA Immersive Solutions, we’re offering clients the opportunity to use Virtual Reality and Digital Twin technologies to train employees and minimize potential losses. What’s next?
In the coming decades, the insurers that thrive will be those that adopt new technologies—not as an afterthought, but as a core strategy. For professionals with an interest in technology, there are so many opportunities to be at the forefront of developing new tech-driven solutions that can help insurers and clients alike manage risk.
The relationships I’ve built with colleagues, clients, and partners are the most treasured part of my career. Technology facilitates, but people connect, empathize, and solve problems creatively together.
We’re making data and analytics-driven decisions
Data has always been at the heart of insurance. Yet, the ways we collect, analyze, and leverage data have changed profoundly, allowing for more personalized policies, better risk modeling, predictive analytics, and more thorough risk assessments.
Today, there's a growing demand for data scientists and analysts who can harness data, apply machine learning techniques, and generate actionable insights. Leveraging data effectively can mean the difference between anticipating market shifts and being blindsided by them.
This new wave of data-driven decision-making in the insurance sector not only enhances operational efficiencies but also leads to more personalized and dynamic product offerings. It’s a tool that empowers us to serve clients with unprecedented accuracy, efficiency, and personalization. Because of this, careers in data and analytics will grow by leaps and bounds.
Relationships are the soul of this business
Despite the digital transformation, the essence of insurance remains unchanged—it’s a business about people. The relationships I’ve built with colleagues, clients, and partners are the most treasured part of my career. Technology facilitates, but people connect, empathize, and solve problems creatively together.
Insurance, at its core, is a business of trust and confidence. Our clients need to believe that we, as their insurer, will not only understand their unique risks and needs but also be there to support them during claims, which are often critical times for any business. These relationships are often long-term, as businesses typically stick with insurers who have proven their reliability and understanding of their specific needs. The intricate nature of commercial insurance requires a level of personalization that can only be achieved through a deep understanding of the client's business, fostered through sustained relationships.
The commercial insurance market is complex, involving various players such as brokers, underwriters, and claims adjusters. A well-connected network can significantly enhance the ability of an insurer to offer comprehensive coverage solutions.
Those skilled at building and maintaining strong relationships can really thrive in a commercial insurance career.
Final thoughts
If my career can illustrate anything, it’s that a career in commercial insurance offers a wealth of professional growth opportunities if you are ready to take them. Never would I have imagined when I began my insurance career that crawling through boilers to inspect them, would take me here, leading a top-market, multi-line, and multi-national insurance team.
Insurance offers exciting prospects for those seeking a dynamic and gratifying career in the future. I am filled with optimism for the industry's trajectory, firmly believing that these invaluable lessons will steer the next wave of insurance professionals toward much success and satisfaction in their careers.
