1. Emerging Trends in the U.S. Property-Casualty Insurance Market
AASCIF 2016 Annual Conference
July 27th, 2016
Bruce Fisher, CPCU
Western Region Sales
The Institutes

2. Agenda
Property-Casualty Insurance Industry Trends
- U.S Economic State
- Job Trends
- Technical Insurance Topics
Background on The Institutes
Open Discussion Time

3. United States Economic Trend
US Real GDP Growth
Source: US Real GDP Growth Rate (2016). Multpl. Retrieved April 22, 2016, from
Overall, current economic and marketplace trends in the United States are continuing to grow.
The GDP has been steadily increasing since 2008, with a 1.98 % increase between 2014 and 2015.

4. 10 Year Job Trend 2004 – December 2015
Property-Casualty Insurance Job Trends
10 Year Job Trend 2004 – December 2015
Source: Bureau of Labor Statistics December 2015
As you can see from this chart depicting the job trends over the last ten years, starting back in 2004, the property-casualty and reinsurance job market has remained steady. Since 2013, you can see that numbers are starting to increase as well.
For agencies and brokerages, you can also see that the number of jobs in this sector is greater and is following a stronger upward trend.

5. Property-Casualty Insurance Job Trends
Occupation
Employment
% of Total
Agent & Broker
495,000
31%
Claims Policy Clerks/Processing
201,430
12%
CSRs, Raters, Service
185,030
11%
Claims Adjustment/Investigation
165,360
10%
Management/Operations
80,810 5%
Information Technology
68,430 4%
Underwriting
62,620
Analysts
39,330 2%
Legal
29,350
Reinsurance
25,300
Internal Audit/Compliance
24,520
Statistical/Actuarial
18,870 1%
Other
222,000
14%
Total
1,618,100
Agencies and brokerages are also leading the industry’s job opportunities, making up 31% of industry’s employment, followed by:
Claims Policy Clerks/Processing—12%
CSR, Raters, Service—11%
Claims Adjustment/Investigation—10%
Yet despite the increase in employment rates and available job opportunities, there is still a need to recruit and retain more professionals to the industry.
According to the Department of Labor, Bureau of Labor Statistics, in the United States, 2.3 million individuals work in the insurance industry today, and more than 1 million will retire in the next ten years.
This is something our industry is aware of and actively working to address, as it affects the long-term success and viability of our industry.
Source: Bureau of Labor Statistics May 2014: Bureau of Labor Statistics May 2014

6. Technology Advances and Trends
Based on a 2016 survey of Institutes Community members:
Top 3 Trends Affecting Our Industry:
Cyber security
Ride sharing
Predictive analytics
Is Technology a Net Positive or Net Negative?
Another topic we’ve seen on the rise, is technology and how it is affecting risk and our industry at large. Even more specifically, we’ve seen a rise in the amount of data available.
Early this year, we surveyed our Institutes Community members again on what trends are shaping the future of our industry and the top three trends they identified were tied to technology—they were:
Cyber Security
Ride Sharing
Predictive Analytics
This same survey also shows that 73% of participants felt that these types of technology issues and changes would have a positive impact on our industry overall.

7. Technology Advances and Trends
Telematics
Providing potential for usage-based auto insurers to transform an emerging market and offer more differentiating services  
Drones
Claims adjusters looking to use drone technology for inspecting claims
Predictive Modeling
The number of companies looking to broaden their use of predictive analytics is on the rise.
Cyber Risk
Cyber risk threats include theft or manipulation of sensitive or private information, computer fraud and viruses

8. Technology Trend: Data Analytics
Insurance has always been a data- and technology-driven business.
Data analytics has become a growing technology trend.
Professionals need to know how to collect large sets of data and critically analyze their findings for:
Easier collaboration within your organization
Identification of ideal customer and product matches
The purpose of monitoring risk in real time
While insurance has long been a data-driven business, one of the major needs we’ve seen is the ability to sift through tremendous amounts of data and turn that data into information to predict future losses.
This is a discipline that applies techniques from the fields of statistics, pattern recognition, and computer science to big data and we’ve seen many insurance companies, brokers, and third party suppliers begin to hire data scientists. The field is now commonly referred to as data analytics.
With the billions of devices connected through the Internet, we easily gather and collect even more data through telematics, data analytics, and other techniques.
However, we must also be able to think critically while understanding the analytics and mechanics of data analysis.
These skills allow for:
Easier collaborating with claims and other parts of your organization
Identifying the right customer for the right product at the right price at the lowest risk
And monitoring risk in real time
Overall, the benefits of data analytics can also lead to companies creating new products and services, enhancing existing ones, and sometimes even inventing entirely new business models.

9. Industry Pending Talent Gap
The industry is facing an impending workforce shortage.
Our industry is currently 2.5 million strong and growing steadily.
The median age is about 10 years older than the general population, so a large number will retire in the not-so-distant future.
The Bureau of Labor Statistics estimates that 730,000 positions will need to be filled between now and 2024.
Our industry is competing for top millennial talent with better-known industries.
Our industry is currently 2.5 million strong and growing steadily. Yet, since the median age for an individual working in the insurance industry is about 10 years older than the general population, a large number will retire in the not-so-distant future.
The Bureau of Labor Statistics estimating that 730,000 positions will need to be filled between now and 2024.
With numbers this high, even if we were to hire every graduate of risk management and insurance programs at colleges and universities around the United States, we still would not be able to fill the talent shortage.
Add in the fact that our industry is competing for top talent with other industries that are better known among millennials--such as, banking and technology, and we are at a disadvantage, but one we can overcome with a unified, coordinated industry effort.
You and I know these benefits about working in the insurance industry. But the research shows that millennials are not aware of them.
Research has also shown that as an industry, we need to be united in our efforts to educate students and young professionals about the career opportunities that will allow them to have a positive impact on individuals, communities, and society as a whole.

10. About The Institutes
We are the knowledge partner that best empowers risk management and insurance professionals to help those in need.
Designations (CPCU, AINS, ARM)
Certificate programs
Online courses
Continuing education (CE) courses
Custom Solutions

11. Why Professional Development
Demonstrates your commitment to the industry
Improves your insurance knowledge and builds self-confidence
Enhances your professional image
Improves career opportunities and advancement
What Our Students Say:
93% Received increased technical knowledge
90% Added value to their organization
83% Feel prepared for long-term career goals

12. Institutes Top Designation Programs

13. The Institutes’ Professional Development Offerings
As technology and our industry advances, the need for professional development grows”
The Institutes’ education offerings provide:
Self-study options and a flexible learning environment
Online courses delivered through a digital platform
Topics ranging from risk management, claims, underwriting, accounting, management, information technology and more

14. The Institutes’ Professional Development Offerings
The CPCU Society A professional community that promotes lifelong learning and development of risk and insurance industry professionals through offering:
Industry events and workshops
Networking through local chapters and interest groups
Current industry news sources, webinars, and publications

15. The Institutes’ Professional Development Offerings
The Institutes Community The only online social platform where you can connect with and learn from over 150,000 industry professionals
Offers networking, career advice, inspirational stories, and more!

16. MyPath, the Collaborative Industry Solution

17. Millennial Research

18. Millennials’ career drivers include:
Millennial Research
Millennials’ career drivers include:
Making a difference in their communities
Opportunities to help people
Job availability and stability
Ability to balance life and work

29. MyPath Marketing Industry marketing goals:
Motivating the industry to get involved in the MyPath effort
Amplifying awareness of our existing efforts
Current publication placements include:

30. Multichannel marketing approach to reach:
MyPath Marketing
Multichannel marketing approach to reach:
Millennials ages 18 to 27
Currently in college or entering their first job post-school (including straight-to-work high-school graduates)
Launch awareness campaign to:
Appeal to emotions that resonate with millennials
Garner awareness of what the insurance industry offers

31. Get Involved With MyPath
Be an advocate
Sign up for the MyPath industry newsletter
Create partner profile
Add internships and scholarships
Add industry videos and other relevant content
Submit blog articles

32. Get Involved With Millennials
CPCU Society membership allows you to get involved with millennials through:
CPCU-Loman Education Foundation
Invite students/interns to local chapter meetings
Collegiate Studies for CPCU program
Mentoring
MyPath

33. www.InsureMyPath.org ContactUs@InsureMyPath.org
Find out more:
Contact us at:

34. Knowledge Assessment Solutions (KAS)

35. KAS Why are we making these new products? Customers’ Knowledge Gaps
Need to figure out the gaps
Need to fill those gaps
Need to be efficient
Our Solution - KAS
Pre-assessments on selected topics
Gaps identified
Solutions offered to fill gaps
Why are we making these new products?

36. Examples of KAS Topics
Good Faith Claim Handling
Assessing and Controlling Property Loss Exposures
CGL
Commercial Auto
Commercial Property
Homeowners
Insurance Overview and Marketing
Property Loss Exposures
Personal Auto
Workers Compensation
Risk Management
Insurance Contracts
What do we have to offer right now? – these topics and more

37. KAS – How it Works Individual view
1. Take Online Assessment
2.Assessment scored & reported to employee
3. Employee automatically enrolled in required course
4. Employee takes Course
5. Employee takes a post-assessment
Individual view
If do not pass the pre-assessment, the student gets automatically enrolled in the online course (happens same day) so they can start their learning
If they do pass, they get a recommendation for additional learning.
Benefits
Saves tremendous amounts of time
Focuses learning on those that need it most
Helps people realize their specific areas of need

38. KAS – Individual Results
Individual results indicate the knowledge level on that topic:
Development Necessary
Solid Understanding
Excellent
Development Necessary
Solid Understanding
Excellent
Development Necessary
Solid Understanding
Excellent
Individuals get results based on pre-assessment performance

39. Company Report – Distribution of Scores
Assessment – Risk Management Overview
 Assessment date: October 20xx
The results from the Risk Management Overview assessment taken by your employees are shown below.
The average score was The range of scores was a low score of 37 and a high score of 100.
Development
Necessary
Below 70%
Solid Understanding
70-89%
Excellent
90-100%
Company results shows distribution of scores

40. Company Report – Results by Topic
Company level results by topics

41. It’s all about making the connections!!!

42. Questions?