Clearpath Specialty Insurance Company will maintain its position as an expert in providing monoline workers' compensation insurance through its unwavering commitment to in-depth industry knowledge and tailored solutions, ensuring businesses receive comprehensive coverage that meets their unique needs.
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As my year as Chairwoman of Big I Kentucky draws to a close, I find myself reflecting on the remarkable growth, connections and opportunities our association has experienced. Leading this incredible group of professionals has been both an honor and a privilege and I’m incredibly proud of the progress we’ve made in supporting independent agents and promoting the insurance industry as a rewarding career path.
Despite the challenges facing our industry—particularly in a tough market and ongoing staffing shortages—I have no regrets about attending every in-person event Big I Kentucky has organized. These gatherings have been a joy, fostering a sense of community among our members, industry partners and independent agency professionals. From our Leadership Conference and Annual Convention to the Keeneland Tailgate, I’ve witnessed firsthand the strength that comes from building industry relationships—many of which have blossomed into lasting friendships. Sharing knowledge, experiences and insights with one another will continue to shape the future of our field.
You can see evidence of our commitment to the next generation by reading the Kentucky Kernel or glancing at the billboards on WKU’s campus—our Big I Kentucky Emerging Leaders are everywhere! It’s clear that young people are seeking meaningful careers and there’s no better time to promote insurance as a fulfilling career choice. This year, our Emerging Leaders have worked tirelessly to raise awareness of the diverse opportunities within the industry. Our outreach, particularly to schools and colleges, is yielding promising results as more young individuals recognize the long-term benefits of a career in insurance. Take Kaylee Hackworth, for example: a senior at Prestonsburg High School who just completed her apprenticeship with our member agency, Hall & Clark and is eager to continue her insurance career after graduation. The future of independent insurance in Kentucky has never looked brighter. Big I Kentucky offers an unmatched array of resources and benefits to its members, from cost-saving policies to technology consulting and a strong advocacy presence in Frankfort. These efforts have delivered real value to my own agency, particularly through initiatives like the mine subsidence coverage increases and fortified roof incentives. I’m confident that Big I Kentucky will continue to introduce forward-thinking strategies to keep us competitive in an ever-evolving market.
As I pass the baton to our incoming Chair, Chris Wiseman, I do so with immense pride—and in style! Will it be my finest 1980s sequin gown, a 1920s flapper dress or even a tie-dyed t-shirt and bell bottoms? That’s right—we’re stepping it up at this year’s Convention! I can’t wait to see your favorite decade brought to life during Thursday night’s Leadership Dinner.
Thank you all for your support and for making this an unforgettable year!
Growing up on a small family dairy and tobacco farm, we shared the same concern over weather that all farmers do. The fickle nature of weather could either make or break our income... not enough rain, too much rain, hailstorms and wind that could decimate crops with the same weather events determining if there was enough grass and silage corn in the summer and later for winter to feed livestock.
While farmers have always worried about the weather, the current climate and weather conditions that we as a state and country are experiencing, now incite the same negative impact for insurance policyholders in the form of increased homeowners’ rates and to a lesser degree, vehicle coverage rates.
As agents, I am sure you are hearing from your customers that they are frustrated or angry regarding the increases in premium. I understand that, because the Department of Insurance Consumer Protection Division is receiving those calls as well. Let me make this clear, the Department of Insurance is not “making” insurance companies raise their rates. Insurers are asking for record increases because of the loss experience Kentucky has suffered over the last 2-3 years.
We all know about the tornadoes that caused so much damage to Kentucky in December 2021 with known insured damage of at least $495M and the flooding of the summer of 2022. Very few realize that there was a convective windstorm on March 3, 2023 that impacted every county in Kentucky, with insured damages topping $500M. That total of over $1B in insurance damages in
Kentucky in a period of 15 months was felt last year and is being currently felt in increased insurance premiums. The increased premiums are needed and appropriate for companies to charge. That isn’t good news for anyone, but it is a fact. The alternative is an exit of insurers which means less competition. That is not a positive alternative.
I don’t have an easy answer for you as agents or for our consumers; however, I can assure you the Department is reviewing all rates filed with us and comparing those proposed rates to the loss experience of the company. We will approve appropriate rates but not unjustified, excessive rates. It is our responsibility to keep the market stable so coverage is available and incurred claims can be paid.
I write this column on September 27 with the hope that Hurricane Helene will not cause significant damage to our Commonwealth. We can’t do anything about climate change, serious storms and the impact on our insurance premiums, but at least we can understand and try to educate our citizens on the cause and effect.
It comes as no surprise that one of the most common causes of an E&O loss is time constraints.
“I need more hours in the day!”
By: Mallory Cornell, Virtual Agency Solutions
This is an especially common thought during the holiday season and leading up to January 1st renewals. While we might begin thinking about plans for the upcoming holidays, we can’t forget about checking new policies, processing endorsements and reporting claims to the carrier.
Understandably, the end of the year may not be an ideal time to update an agency procedure manual, attend continuing education classes or make changes around the office, but it is helpful to make a note of where inefficiencies and opportunities exist. Often agency managers and staff will say if they had more people there wouldn’t be as much concern about tasks not getting completed or something being done incorrectly. In general, however, insufficient staff is not the root cause. Instead, agency staff should be looking at their ability to complete the tasks and whether they have the right tools to work more efficiently.
So how can you get an E&O kickstart to 2025? There are simple steps that can be taken to help mitigate the risk of an E&O claim occurring because of time restraints. Better yet, you don’t have to try and tackle them on your own.
1. Maintain practical and consistent procedures and make sure everyone is aware of them. If you think your procedures might be out of date, check out the E&O Guardian website and review the Sample Procedures Manual: www. eoguardian.com/tools
2. Complete an Operational Improvement Review (E&O Audit) to identify where you might have exposures within the agency. This virtual process may even earn you a premium credit on your Swiss Re E&O policy! Visit www. virtualagencysolutions.com to learn more!
3. Review employee job descriptions and compare the descriptions with training and education completed by the employee.
Need more ideas? Help protect your greatest asset, your agency, by contacting your Big I association. By being a member of the Big I, you can access a variety of free resources to help your agency. Contact your state association, ask your question or visit independentagent.com
Have a safe and enjoyable end-of-year and set aside some extra time to relax and be proud of the magnificent work you’ve done in 2024. TIME time TIME time
By: Carey Wallace, AgencyFocus
There’s a good chance you’ll agree that your most valuable asset is your team and the insurance industry is no different. I meet people every week who have amazing team members that hold irreplaceable knowledge and skills.
In fact, the success of your agency is closely tied to the effectiveness of your team – especially your producers, account managers and client service representatives. These key players drive revenue, maintain client relationships and ensure retention of your clients remains high. However, one of the most critical, yet often overlooked, components of managing a successful insurance agency is developing a compensation structure that aligns with industry standards.
When your compensation structure deviates from industry norms, it can create a ripple effect, harming your agency’s profitability, reducing your ability to reinvest in growth and even impacting the transferability of your agency during a sale.
Before diving into the risks of deviating from standard compensation structures, let’s first outline what those standards generally look like across three key roles within an insurance agency:
Producers are the revenue drivers for your agency. Industry-standard compensation
for producers typically includes a base salary plus commission on the business they generate until a producer validates and then their compensation is transitioned to 100% commission. Depending on the focus of the producer, commissions for new business can range from 35%-50% and renewal commissions may range between 25%-40%. In addition, some agencies offer incentives or bonuses tied to performance metrics such as achieving sales targets, maintaining retention rates, or crossselling additional lines of insurance.
Account managers serve as the backbone of client relationships. They handle policy renewals, client inquiries and problem-solving. Compensation for account managers is typically salary-based, with performance-based bonuses that make up a small percentage of their overall compensation. The average salary range for account managers falls between $50,000 and $80,000 annually, depending on the size of the agency, location (i.e., metro, rural, cost of living in your state, etc.) and specific responsibilities. Bonuses or commissions tied to retention or client satisfaction are common performancebased components of the overall compensation for account managers.
CSRs are often the first point of contact for clients and are responsible for handling administrative tasks, customer support and basic policy servicing. Their compensation is largely salary-based, with fewer opportunities for commissions or bonuses compared to producers or account managers. Salaries for CSRs typically range from $35,000 to $55,000, depending on experience, location (as noted above) and agency size.
While every agency is unique, dramatically varying from these industry-standard
compensation models can lead to several negative consequences, from profitability issues, incentivizing complacency and even creating real challenges during a potential sale of your agency. Let’s take a closer look at the risks:
Overcompensating your staff, especially producers, can significantly erode your agency’s profitability. While it’s tempting to offer higherthan-average commissions to attract top talent, this can greatly reduce your profit margins, making it difficult to reinvest in other areas of your business, such as technology or marketing.
Producers compensated at an above-market rate for renewals may also feel less pressure to focus on generating new business, leading to missed revenue opportunities. Account managers and CSRs who are paid significantly more than industry standards may lack incentives account round or improve efficiency, as they’re already receiving a comfortable salary without performance-based metrics tied to their compensation.
Conversely, undercompensating staff creates its own set of issues, such as reduced employee morale, higher turnover and difficulties in recruiting high-performing employees. In the long run, paying below industry standards can be just as costly as overpaying, as it leads to increased recruitment and training costs.
Maintaining a balanced compensation structure is essential for ensuring you have the financial resources to invest in other critical areas of your agency, such as technology, marketing and operational improvements. If too much of your revenue is allocated to staff salaries and commissions, you may find yourself with insufficient funds to adopt new technologies like an agency management system (AMS)
or customer relationship management (CRM) platform—both of which can improve operational efficiency and client service.
With the current insurance market and the rate of change in our industry, technology is not just a luxury but a necessity. Investing in tech allows you to streamline workflows, improve the client experience and reduce manual processes, all of which are crucial for scaling your agency. Without the ability to invest in these areas, your agency risks falling behind competitors who are leveraging technology to improve efficiency and client retention.
If you’re planning to sell your agency one day, having a compensation structure that aligns with industry standards is crucial for transferability. Prospective buyers want to purchase agencies with balanced financials and scalable models. If your staff is overpaid relative to industry standards, a buyer may hesitate to acquire your agency or may renegotiate the sale price to account for the higher compensation costs they’ll inherit.
Additionally, overcompensated producers or account managers may be at risk of leaving during a sale if they fear their compensation will be adjusted post-acquisition. The last thing a new owner wants is to lose key employees
who have relationships with clients and can provide continuity in those accounts during transition. Losing key revenue-generating staff immediately after purchasing an agency will also impact the ongoing growth and performance expectations. When these things are in question a buyer will reduce their offer to mitigate any risk related to uncertainty surrounding the ongoing performance of the agency. Conversely, undercompensated staff may already be looking for better opportunities, making retention even more difficult during a transition.
Aligning your compensation structure with industry standards is not just about paying people fairly -it’s a STRATEGY that’s about building a sustainable and profitable business. When you overpay or underpay key roles like producers, account managers and client service representatives, you risk diminishing profitability, reducing your ability to reinvest in technology and growth and creating challenges for the future transferability of your agency.
A balanced, industry-aligned compensation structure helps you attract and retain top talent while ensuring your agency remains profitable and competitive.
It also sets the stage for long-term growth and success, positioning your agency as an attractive acquisition target when the time comes to sell.
Our knowledgeable underwriters and brokers coordinate among specialty teams to meet the needs of multi-faceted risk opportunities. Our specialties extend beyond commercial lines into personal lines, farm and ranch, bonds, cannabis and more. We have a dedicated medical malpractice team and one of the strongest aviation teams in the Midwest.
Our goal is to provide one-stop solutions for our independent producers’ local and nationwide insurance coverage needs.
By: Scott Freiday, Insurbanc
The number of agencies with infamily perpetuation plans declined by 10% between the 2020 and 2022 [Future One Agency Universe] studies.
The need for independent insurance agency leaders to plan their exit from the business combined with the desire of up-and-coming producers to take over ownership creates a rich environment for a succession plan. One lesser-known strategy — a staged perpetuation — can spread out the need for capital over time, rather than all at once. Longtime owners seeking to ease into retirement while still influencing the culture and direction of their agency can stay involved via a well-mapped plan that transfers ownership of the agency in phases, rather than selling in its entirety.
The use of staged perpetuations is accelerating in the insurance marketplace for several reasons. According to the 2022 Future One Agency Universe Study, conducted by the Big “I” in collaboration with independent agency companies, the average agency principal is 54 years old and 17% are age 66 or older. Ownership in independent insurance agencies is a reflection of those statistics.
In addition, 40% of those agency principals expect some level of ownership change in the next five years and the number of agencies with in-family
perpetuation plans declined by 10% between the 2020 and 2022 studies. Owners who may have imagined gradually stepping back as a family member was groomed to succeed them may be forced to rethink their retirement options.
Staged perpetuations, planned carefully well in advance of the agency owner’s retirement or withdrawal, enable owners at or nearing retirement age to leave gradually and on their own terms. They also offer ownership opportunities to valued producers within the agency or talent identified elsewhere.
Selling shares in the agency maintains continuity and stability. Agents with stock are not only likely incentivized to grow the agency to increase their investment, but are less likely to leave. This diversified ownership reduces agency risk by spreading ownership and investment beyond the business. At the same time, the agency’s legacy and culture are preserved.
Structuring an exit plan also avoids “buyer’s remorse.” Some lenders have worked with owners who sold their agency in its entirety then approached the lender a year or two later because they weren’t ready to be fully retired. They were looking for financing to buy their agency back.
Perhaps that child who showed little interest in taking over the firm had a change of heart. Or the owners did not enjoy retirement as much as they thought they would. Or, if they continued to work for the firm after selling, they didn’t like the direction or culture new ownership put in place. The owners may find the buyback to be more costly than if they had sold shares of the company while maintaining majority ownership.
Various approaches can be taken depending on the agency, such as working with lenders or consultants, to create a shareholder-loan program. This program could involve a formal agreement solely between the owner and the successors whereby shares are sold over time, providing the owner with income while retaining ownership in the agency.
Meanwhile, with the energy and effort provided by these incentivized new owners, the agency’s value is expected to grow along with the value of the owner’s remaining shares. This allows the owner to sell another fraction or percentage to current or new employees, thus perpetuating the agency’s growth and value while expanding ownership.
It’s crucial to identify potential equity investors within the agency as early as possible and initiate these discussions
sooner rather than later. The potential investors might be family members, producers, or key employees in non-sales roles such as accounting. Until the question is posed, it may not be apparent which employees are interested in equity ownership.
In general, these conversations should start at least a year or two in advance of stepping back, but the exact timing depends on the owner’s circumstances and the agency’s trajectory. An owner 15 years or more from retirement could start diversifying ownership over the next decade by initiating these conversations.
Conversely, an owner who is closer to retirement and didn’t engage in such discussions earlier may be in a more reactive than proactive position.
From the buyer’s perspective, there are many benefits, too. An opportunity for equity ownership often changes the way the staff thinks. When an employee has the opportunity to buy into the agency, it greatly improves business growth and allows agencies to compete for talent. Stock opportunities can be a good retention tool, keeping key performers grounded within an agency rather than moving place to place.
Younger agents hungry for equity ownership may seek out
Example 1: A $4 million commission agency with a $1.6 million cash flow receives an outside offer to purchase it for $12 million, which is 7.5 times its cash flow. It seems too good to pass up. But here are some things to consider:
• Are the earnout targets achievable?
• What is the seller’s timeline?
• Are there experienced and qualified buyers internally?
• What will the impact be to the agency’s legacy and culture?
Example 2: What if, rather than selling to an outside buyer, the ownership of the agency is restructured by selling 30% to three valued producers, discounting the value of the shares to accommodate the partial interest sold internally?
The owner receives $2.4 million in cash at closing (which the three investors could finance) and still owns 70% of the agency. Assuming modest annual growth of 2%, maintaining expenses and staff levels, the agency is projected to achieve top-line revenue of $4.4 million over five years, valuing the 70% interest at $6.2 million. With a 5% annual growth rate, the total investment over five years would amount to $16 million, with the investment breakdown as follows:
• Cash Down Payment: $2.4 million
• 5-Year Cash Flow: $6.0 million
• 70% Interest: $6.2 million
• Total Investment: $14.6 million
an agency that offers the possibility of such equity. Once those newer or younger agents arrive, they’re going to work as hard as possible to grow the agency because they’re investing in themselves.
There is a lot of value in bringing either key employees, producers, or family members under the mentorship of the owner so that they can be trained to run the agency properly. In smaller firms that could be one or two people. For larger agencies, there may be stockholder loan programs in place that rewards individuals who meet certain targets. Not all producers are cut out to be owners, however. They might be good at selling, but they may not necessarily have the fundamentals to operate a business.
The current employment market is quite competitive, so it’s challenging to hire the right people. A little bit of ownership, in addition to having access to good markets, could make the difference to the job candidate and allow the agency owner to mentor the next generation of owners as well.
Staged perpetuation also preserves an agency’s legacy and culture and it nurtures intangible values, such as quality of life and future investments. These factors, along with the potential for increasing agency value over time, can make staged perpetuation more valuable than an outright sale.
By: Casey Nelson, Catalyit
Let’s talk about the future—specifically, the future of Robotic Process Automation (RPA) in the insurance industry. If you’re thinking, “Great, another tech trend I have to keep up with,” trust me, this is one worth paying attention to. RPA has already started transforming how insurance agencies operate, but what’s even more exciting is where it’s headed. So, grab a cup of coffee (because what’s a conversation about the future without caffeine?) and let’s dive into some trends to watch.
AI and RPA: A Match Made in Tech Heaven
First off, let’s talk about the marriage of RPA and
Artificial Intelligence (AI). While RPA is excellent at handling repetitive tasks like data entry or claims processing, AI adds a layer of intelligence that takes things to a whole new level. We’re talking about cognitive automation—where RPA systems don’t just follow rules; they learn from them.
Imagine an RPA system that not only processes claims but also analyzes the data to identify patterns of fraud, predict future claims, or even offer personalized policy recommendations. That’s the future we’re looking at, where RPA and AI work together to not just automate but also optimize how insurance agencies operate.
Now, if “hyperautomation” sounds like something out of a sci-fi movie, you’re not too far off. But instead of robots taking over the world, we’re talking about robots taking over all those mundane, time-consuming tasks that no one really wants to do. Hyperautomation involves the integration of multiple technologies, including RPA, AI, machine learning and analytics, to automate as many processes as possible.
In the future, we’re going to see insurance agencies leveraging hyperautomation to handle everything from customer onboarding to claims resolution with minimal human intervention. This trend is about going beyond individual task automation and moving towards end-to-end automation of complex workflows.
Another trend that’s gaining traction is the rise of no-code and low-code RPA platforms. These platforms allow users to create and implement RPA bots without needing to write a single line of code. For insurance agencies, this means that even if you don’t have an IT department the size of Google’s, you can still harness the power of RPA.
As these platforms become more sophisticated, we’ll see more insurance agencies adopting RPA to automate processes quickly and efficiently. This democratization of RPA technology will empower agencies of all sizes to take advantage of automation, leveling the playing field and driving innovation across the industry .
Regulatory compliance is a big deal in the insurance industry and keeping up with ever-changing regulations can feel like a full-time job. That’s where RPA comes in. One of the emerging trends is the use of RPA to manage compliance processes more effectively. From tracking regulatory changes to automating reporting, RPA is making it easier for insurance agencies to stay compliant without breaking a sweat.
Looking ahead, we can expect RPA tools to become even more integrated with regulatory technology
(RegTech), ensuring that compliance is not just automated but also proactive. This means fewer compliance issues and a reduced risk of penalties — because nobody wants to deal with that.
Finally, let’s not forget about the customer. In the future, RPA will play a critical role in enhancing the customer experience. We’re already seeing RPA being used to automate customer interactions, like chatbots handling basic inquiries or automated systems processing claims in record time. But the future promises even more personalized and seamless customer experiences.
Imagine a world where your clients get real-time updates on their claims, personalized policy recommendations based on their history and instant responses to their inquiries — all powered by RPA. This level of service isn’t just about making life easier for your clients; it’s about building loyalty and trust in a competitive market.
"In the future, we’re going to see insurance agencies leveraging hyperautomation to handle everything..."
So, what does the future hold for RPA in the insurance industry? In a word: transformation. From AIenhanced automation to hyperautomation, no-code solutions, regulatory compliance and enhanced customer experiences, RPA is set to change the way insurance agencies operate in profound ways. And while the technology might seem a bit daunting at first, the payoff—both in terms of efficiency and client satisfaction—is well worth the investment.
As we move forward, the key will be staying informed and embracing these trends as they emerge. Because in a world where technology is constantly evolving, those who adapt will not only survive but thrive. And who doesn’t want that?
So, here’s to the future of RPA in insurance — may it be as exciting as it is transformative. And may your coffee always be as strong as your automation game.
as of October ‘24
Affluent Program
▪ AIG
▪ Chubb
▪ Openly
Auto & Home Standard Markets
▪ Foremost
▪ Branch
▪ Openly
▪ Progressive
▪ Safeco
(Underwriters: DeAnne Biscoe and Ashley Snyder)
Flood – Selective
Home Business Insurance – RLI
Jewelry Insurance – Jewelers Mutual
Non-Standard Markets – Lloyd’s
Personal Umbrella – RLI
Umbrella Alternative Market
▪ Anderson & Murison
Recreational Marine – Chubb
Recreational Vehicle
▪ Progressive
▪ Safeco
Crump Life Insurance Services
Bonds
▪ Goldleaf ▪ Propeller
Commercial Auto Monoline
▪ Forge
▪ Progressive ▪ The Hartford
▪ Travelers
Community Banks Business Insurance Program – Travelers
Cyber Insurance – Coalition
Deductible Buy Back – AEGIS
Executive Risks – Coalition
Executive Risks & Cyber – Other Carriers
▪ Arlington Roe
▪ Berkley Management Protection
▪ Chubb
▪ CNA
▪ Cowbell Cyber
▪ Philadelphia
▪ Secura
▪ The Hartford
▪ Travelers
Flood – Selective
Habitational Markets – MiddleOak
▪ Apartment Program
▪ Condominium Program
Real Estate Agents / Property Manager E&O – Travelers
Small Commercial
Berkley Aspire ▪ Chubb ▪ CNA ▪ Employers
▪ Pie Insurance
▪ Progressive ▪ Secura ▪ The Hartford ▪ Travelers Select
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“Partnering with Shepherd Insurance six years ago was the best business decision I have ever made. The support and resources made available to myself and my fellow teammates provides our clients with a “Best In Class” experience. Shepherd provides a unique and wonderful model that allowed us to maintain what makes our agency unique while providing support for continued growth, professional development, and advancement opportunities for our employees.”
-Trent
Executive Partner
By: Sharon Emek, WAHVE
The dilemma in today’s labor market is real.
In 2023, the U.S. labor market had 9.5 million unfilled jobs. Yet there were just 6.5 million unemployed workers, according to the U.S. Chamber of Commerce. If every unemployed person found a position tomorrow, there would still be over two million open positions.
Finding talent today is a struggle at best. Finding talent within the insurance industry? As difficult as it comes.
It’s no secret that the industry has long struggled with attracting and retaining talent. As far back as 2015, millennials showed little interest in working for insurance and insurance-related organizations — The Hartford’s 2015 Millennial Leadership Survey revealed that just 4% of millennials were considering a career in insurance.
Fast forward to today and not much has changed. A Pew Research study shows that interest in the industry has held at 4% as recently as 2023. Ironically, millennials will make up 75% of the workforce by 2025.
While the industry struggles with attracting and retaining younger generations of workers, it is also
grappling with some pretty hard facts. According to NAMIC data, 50% of today’s insurance workforce is looking toward retirement by 2028. That could leave the industry with a dearth of workers and the inability to expand and grow business.
Facing this twofold issue is daunting. Attracting young talent to the industry is key. However, the more immediate need is to have enough talent available to get the job done. That will require some innovative thinking and a retooling of how business is conducted and who our next workers will be.
Fortunately for the industry, not every retirementaged insurance professional wants to quit working cold turkey. In fact, a CNBC All-America Workforce survey found that over two-thirds of U.S. workers (68%) who retired during the pandemic would consider returning to work and 94% who left the workforce but didn’t officially retire would do the same.
Even as workers retire, many of the same age demographic are rethinking what their retirement should look like. The Bureau of Labor Statistics finds that a surprising 27% of people aged 65 to 74 are actively seeking employment, many of them already retired, which makes the 65-plus crowd the fastest-growing segment of the workforce.
Retired workers are reshaping retirement, which could be the salvation that the insurance industry desperately needs to fill so many open positions.
However, employers are having a tough time embracing them. Retired workers are often passed over as viable options for filling open positions, with organizations unwilling to engage a worker who isn’t interested in the traditional nine-to-five.
Organizations assume they are not as engaged and not as likely to be in the position in five years — assumptions that are inaccurate. Instead, organizations should be realizing how much potential a retired insurance professional can deliver.
That includes how we view the retired worker demographic. Many talented individuals who have retired are looking for new ways to utilize a wealth of career knowledge and skill that doesn’t require commutes or being in the office every day. They may also prefer a less stressful position at lower pay as they are no longer on a career path. Organizations should be willing to meet them where they are.
That starts with letting go of preconceived impressions of older workers. Too many managers and organization leaders think that older workers:
• Are less productive than younger workers
• Are resistant to change
• Have difficulty learning new skills
• Don’t use technology or understand it
All of which are not true. Study data from the Center for Retirement Research at Boston College show that workers between the ages of 60 and 74 are more productive than younger workers. Older workers also are more open to change, according to the Centers for Disease Control (CDC) and have more experience with changes in the organization than do their younger coworkers.
Likewise, retired workers have amassed a career full of new skills learned. These are workers who were on the job as technology was adopted and refined. They were the first generation of workers to learn how to implement technology on the job. Older workers are not averse to learning new skills — in fact, they often welcome and embrace learning. In many ways, these veteran workers should be valued
for the skills they bring and their proven ability to adapt to change.
Perhaps organizations should adopt the same attitude toward change. In order to be more resilient and agile, organizations need to approach workforce engagement and retention in a new way.
Make no mistake — our industry has proven its ability to respond with flexibility. That same resilience and agility certainly came to the forefront amid the Covid-19 pandemic. Insurance organizations seemingly overnight learned how to pivot hard, revamping business to run on a remote work model. With customer satisfaction and service being top of mind, insurance adapted.
Yet can the industry adapt its way of thinking about the workforce?
Traditional methods for filling open positions need to change. Our industry could use a refresher in implementing that same flexibility that helped us through the pandemic.
Solving the talent shortage, therefore, should include a way to reconnect with retired workforce members. The benefits your organization can attain in doing so are real. A Wall Street Journal article revealed that certain companies are seeking out the talents of seniors, calling their age “an asset.”
Employers say that older workers bring:
• Dedication to the company
• Customer service focus
• Dependability
• High productivity
• Strong work ethic
• Institutional knowledge
And studies prove that. An AARP/Aon Hewitt report reveals that 65% of employees 55 years and older are engaged in the workplace.
Another benefit: By considering using retired workers in work-from-home arrangements, your organization can significantly expand the talent pool, removing geographic boundaries and giving you more potential for finding the right candidate for the position.
That older, experienced candidate can also become a mentor. Career insurance veterans have amassed a wealth of experience that they can pass along to a new generation of workers. They also can bring a vast network of contacts and knowledge with them to every job.
The best part about hiring retired workers to work from home for your organization: They can be up and running quickly. It takes just a few changes to your communication process, namely adding chat and video conferencing to the ways with which you engage your workers.
As the labor shortage in insurance deepens, employers must learn to shed their misconceptions
about age and the retired worker. Retired workers bring with them a wealth of experience, soft skills and a wide network of contacts. The smart organization is one that finds a way to utilize those attributes.
Your remote workforce needs just a few changes to your current employee management processes — changes that can improve your overall company culture.
Adopt better hiring outreach to include remote and retired professionals. Instill more proactive communication.
These small changes can help improve not just the experience for your remote and hybrid teams, but for the entire organization. A stronger organization improves retention and makes your organization the one that job seekers want to work for.
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The Kentucky IA is the official magazine of Big I Kentucky and is published quarterly.
All advertising and editorial submissions are welcome.
Office Address: 13265 O’Bannon Station Way, Louisville, Kentucky 40223. Telephone: (502) 245-5432 * Email: info@bigiky.org * Fax: (502) 245-5750
Louisville, KY November 20-22, 2024
Louisville, KY February 6, 2025
Established Louisville agency interested in acquiring insurance agencies in Jefferson and surrounding counties. If you are interested in selling, merging, or need assistance with perpetuation, we would like to talk with you in confidence.
Call Kevin Lavin, CIC or Philip Anderton, CIC, CRM at Sterling Thompson Company at 502-585-3277
Independent with top best markets looking to expand presence in Jefferson, Oldham or Shelby counties. Wanting Personal lines Producer or book of business to move or purchase. All arrangements possible, in strict confidence.
Please send inquiries to:
Turner Insurance Agency, 2460 Shelbyville Road, Shelbyville, KY 40065 or call Kurt Turner, CPCU at 502-633-6060.
We would like to thank our advertisers for their
(as of 10/1/24)
Agile Premium Finance Amerisafe
Auto-Owners Insurance Company
Captial Special Risks
Commercial Sector Insurance Brokers Countryway
Cowbell Cyber
EMC Insurance Companies
Iroquois Group
J.M. Wilson
Johnson & Johnson
Kentucky Growers Insurance Company
Market Finders Insurance Corporation
Big I Kentucky gratefully acknowledges these fine companies, our 2024 Industry Partners. Without their assistance, fees for the events and programs throughout the year would be significantly higher and/or the quality of the program would be restricted.
TO BECOME A SPONSOR OR FOR MORE INFORMATION ABOUT OUR INDUSTRY PARTNER PROGRAM, PLEASE CONTACT ERIN FOSSON, SALES & MARKETING DIRECTOR, AT 502-245-5432 OR EFOSSON@BIGIKY.ORG
The Big “I” MEP 401(k) Plan was designed with our Big “I” members’ needs in mind. By capitalizing on our collective size, the Big “I” assembled a line up of best-of-breed retirement providers usually only available to Fortune 500 companies.
With the Big “I” MEP 401(k) Plan, members experience all the benefits of an unbundled plan without having the stress of managing the providers. Big “I” Retirement Services, in conjunction with our administrator, serves as a gatekeeper and provides members with one main point of contact for the operation of your plan.
The MEP is a top-tier 401(k) plan with low cost mutual funds, competitive administrative costs, cutting edge educational tools and plan consulting. Learn how our plan compares; contact us for a complimentary consultation today. Participation in our plans is available exclusively to Big “I” members.
