Something old, something new

Hiring the best talent is no good if you can’t keep it, says a panel of captive insurance experts brought together by Captive International.

It’s hard enough to find new talent, but keeping it is another challenge for captives. In the insurance industry more broadly, staff turnover has grown in recent years. Traditionally, attrition was less than 10 percent a year. It’s now closer to 15 percent.

With competition not only within the sector, but also from the wider insurance industry (and professional services for many of its experts), it’s a particular issue for captives. To find out how captives can not only attract the best candidates but encourage them to commit to a career in the sector, Captive International invited a panel of four young professionals to discuss the issues:

Prabal Lakhanpal, senior vice president at employee benefit consulting and actuarial services group Spring Consulting;

Kim Guerriero, principal and consulting actuary at actuarial and consulting firm Milliman;

Bailey Roese, a partner at law firm Dentons; and

Dylan Feringa, director and vice president in the Insurance & Specialized Industries Group at PNC Institutional Asset Management.

As they explained, if the industry wants to see new workers stick with it, it’s going to have to make room.

“I wish I had seen more from the industry about how it can be a career for individuals.”Prabal Lakhanpal, Spring Consulting

Learning from experience

While the industry’s ageing workforce might be a problem in one respect, older professionals in the industry are among its most valuable assets. The support and encouragement they provide the younger generation is both general and specific.

In general terms, as Lakhanpal explained, industry veterans mitigate the frequent failure of the industry to show recruits a clear career path. “I’m grateful for the opportunities I have had, but I wish I had seen more from the industry about how it can be a career for individuals rather than just a pit-stop in insurance industry jobs.”

Those who have already made a long-term career provide valuable evidence and reassurance.

“Being able to see leaders in your space having that career gives you a lot of comfort and confidence as well as a clear understanding of what it’s going to take for us to make it,” he added.

More specifically, individual leaders’ advice and encouragement to people early in their careers is essential.

“Each of us here has a mentor who’s been around for a very long time and who is very well known in the space,” said Roese, who began working in the captives sector under and with the encouragement of Dentons partner Chaz Lavelle.

This isn’t important just for the sake of encouraging younger professionals in their careers—it’s essential to the industry for capturing the knowledge that will otherwise be lost when experienced workers retire.

“Substantial intellectual capital sits with veterans in the industry,” said Lakhanpal. “As we think about what the next generation is going to look like, it is incumbent upon all of us to make sure a lot of that intellectual capital gets passed down.”

“If we can see companies’ superiors making sure to invest in their younger talent, it’s going to pay dividends.”Bailey Roese, Dentons

Make room for the young ones

While experienced professionals with decades of experience are an undeniable asset to the industry, there is a potential downside: opportunities for those considering entering the industry may look limited.

“There’s a lot of longevity in our industry, which is awesome to see, but it has caused some of the issues with attracting new talent,” said Roese.

The key to managing that is twofold. First, the older generation need to make room for younger professionals to develop their skills and experience. There are many young workers in the industry or considering entering it, but it requires generosity on the part of their seniors to allow them to take opportunities to grow and develop their skills.

“They’re ready to step up, but that’s going to take some stepping back by some of the folks who have been around for a long time,” said Roese. “If we can see companies’ superiors making sure to invest in their younger talent, it’s going to pay dividends—and a lot faster than they might think.”

Second, the new generation need to grasp the opportunities. As Feringa said: “They cannot expect it on a platter. There needs to be drive and hunger.

“When you find your mentor it’s great because there’s the transfer of industry knowledge, but the next generation must take that foundation and build on it. You can’t just take the knowledge and never expand.

“Find your mentor, and find your network, but then make a name for yourself,” he concluded.

“Find your mentor, and find your network, but then make a name for yourself.”Dylan Feringa, PNC Institutional Asset Management

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