Agents Eager To Invest In Future Generations, IIABA Finds

The majority of independent agents would like to see the insurance industry do more to encourage high schools and colleges to guide students toward an insurance industry career, and many said they would help with internship programs.

The findings were part of the bi-annual “Agency Universe Study” conducted by Future One, a collaboration of the Independent Insurance Agents & Brokers of America and leading independent agency companies. The study involved approximately 1,900 agencies answering questions by the Internet and a small sampling of participants by fax.

According to the survey, 56 percent of respondents stated that the insurance industry should encourage high schools and community colleges to help students plan for insurance careers. Forty-five percent of agencies said they would consider participating in an internship program to bring new people into the industry.

“Young people, women and minorities continue to be underrepresented in the independent agency system, particularly among agency principals,” Madelyn Flannagan, vice president for education and research with the Alexandria, Va.-based IIABA, said in a statement.

The study found that 11 percent of the agencies participating in the study are relatively new, founded in 2004 or later (including 4 percent founded in 2007 or 2008).

A positive finding was that new agencies were mostly headed by younger principals. The average age of respondents from all agencies is 52, compared to 47 from new agencies.

“The average age of a professional in the insurance industry is 54, and 60 percent of insurance industry professionals are older than 45,” noted Robert Rusbuldt, IIABA president and chief executive officer. “Many in the industry laud the “Big ‘I’ InVEST program as one of the most important projects to ensure the continuing success and growth of the independent insurance agency system.”

InVEST is the IIABA’s education initiative to raise awareness of insurance industry careers in high schools and college.

“As more baby boomers retire, the need for young talent is evident,” said Bill Pierson, IIABA assistant vice president of agent development and executive director of the InVEST Program. “To combat the generational transition, action needs to be taken now to train entry-level recruits and cultivate the growth of management-level employees so they can take over as boomers retire.”