Young Talent Pushing Forward
Many insurance professionals say they “fell into” the industry. Our Power Broker® winners and finalists under age 40 are no different, crediting their introduction to the business largely to family members who got them an “in.” Their experiences entering and working their way up through the ranks demonstrate both the strengths and weaknesses of the industry, and paint a picture of what the future may hold.
2014 Under-40 rankings sponsored by:
Denton Christner, 36, a Power Broker® in the Gaming and Hospitality category, started working as a file clerk in his father’s Allstate agency as a high school student. He stayed with Allstate through college and eventually became an agent at the age of 21.
After agency consolidation left him and other brokers with smaller books looking for other options, he took a tip from another family member and went the independent route, joining BayRisk Insurance Brokers at 24.
Eleven years later, Christner is vice president and has helped BayRisk build its biggest new business source: a program for food truck insurance. Taking advantage of social media and online marketing, he has used the Internet as a primary sales driver, bringing InsureMyFoodTruck.com to the top of search engine results lists.
“Trying to sell commercial insurance to business owners who are oftentimes 10, 20 or 30 years my senior was very difficult. That was a big obstacle as a young agent, trying to prove my professionalism.”
— Denton Christner, vice president, Bay Risk Insurance Brokers
“It was an amazing experience; totally life-changing,” Christner said. “I pretty much ate, slept and breathed food trucks for 18 months getting it launched.”
Lindsay Roos, 30, and a Power Broker® in the Pharmaceutical category, secured an internship with Marsh as a college junior with the help of a family member. In fact, internships and early training programs are a common thread among our young success stories.
“I interned in our Morristown, N.J., office for two years,” said Roos, a vice president and excess casualty placement broker at Bowring Marsh. “It was my first real work experience, and I really liked the work and the company. Most importantly, I really liked the people.” Marsh hired Roos into a graduate training program that gave her a well-rounded and formalized immersion in the industry alongside her peers.
Kate Simons, a 28-year-old Power Broker® finalist in the Retail category, took a summer internship with Aon as a college student “without really knowing what it was at first.” But the program drew her in, opening up the world of learning opportunities that the insurance industry has to offer.
“In this job, the thing I like is that you ultimately get to learn about all the industries your clients are in, whether it’s retail, real estate, manufacturing, food, and the list goes on and on,” she said.
Like Roos, Simons participated in an early career development program at the company. The 18-month training helped her home in on what aspects of insurance most appealed to her and exposed her to key mentors, leading her to her current position as senior broker.
“I also felt that the industry had a really good focus on developing young talent and investing in the future,” Simons said.
Indeed, internships and intensive training programs continue to be key tools in bringing new grads into the fold.
Big brokers like Aon, Marsh and Beecher Carlson reach out to colleges to find prospective talent and introduce them to the industry. If all goes according to plan, those interns become full-time hires.
A year or two of initial training for new employees gets their feet wet in every aspect of the business. Those onboarding programs help young brokers find what niche appeals to them, and in what function they can excel.
For many, that process helps young professionals move on from simply “falling into” insurance to really embracing it as a rewarding and exciting career.
As evidence of these programs’ successes, notice that this year’s “Under 40” class of winners and finalists includes 60 brokers, as opposed to last year’s 40. More young brokers are thriving in the business.
“The best experience comes from clinging onto some good people who are willing to teach you.”
— Lindsay Roos, vice president, Bowring Marsh
Yet, for an industry that invests considerable time and resources in developing new talent, the concern remains that not enough young people realize the benefits of working in insurance. In spite of a wealth of opportunity, the influx of new grads remains troublingly low.
“There are not enough young people getting into insurance, unfortunately,” Christner said. “It takes a lot of convincing and hand-holding and mentorship to get new producers settled into their career.”
Roos echoed that thought, noting that most college students aren’t necessarily looking for a professional career in insurance, but end up there via a tangential skill or interest.
That’s how a career in insurance brokering developed for Blythe O’Brien Hogan, a director in the Global Fine Arts Practice at Aon. O’Brien Hogan majored in art history as an undergraduate, then pursued a master’s degree in art business at Sotheby’s Institute of Art in London. That got her interested in art protection, both for personal collections as well as in transit or on display in a gallery or museum. She eventually wrote her master’s thesis on the development of insurance and risk management for fine art.
“From there I segued into the very dynamic, but a little bit niche, risk management insurance industry for fine art collections,” she said.
Aon’s Global Fine Arts Practice, launched in 2005, allowed O’Brien Hogan, a Power Broker® in the Fine Arts category, to work more closely with all players in the art industry, from handlers, shippers, storage facilities, and conservators to appraisers and tax attorneys.
Despite being given opportunities and responsibilities early in their careers, many young brokers have had to overcome ageism in order to move ahead.
“Trying to sell commercial insurance to business owners who are oftentimes 10, 20 or 30 years my senior was very difficult,” Christner said. “That was a big obstacle as a young agent, trying to prove my professionalism.”
“It is challenging at times to get people to look past your age,” Simons said. “Being younger and still successful; sometimes, people tend to look for a little gray hair.”
Ultimately, though, a sound working knowledge of clients’ industries wins out, gaining their trust and building a positive reputation.
Seth Cohen, 30, and an Entertainment Power Broker®, worked around the challenges of youth and inexperience by focusing on educational opportunities and industry training.
“I realized I could really accelerate my experience beyond my years,” said Cohen, an entertainment area vice president with Arthur J. Gallagher. “I got my ARM and CPCU as quickly as I could. I took a UCLA filmmaking and production course that was very intensive. I continue to attend media law conferences. Staying on top of current affairs helps to stay ahead of your inexperience.”
A little persistence never hurt either.
“Hard work and perseverance, being creative and asking questions has been the way to work through all that,” Simons said.
Younger brokers also have the advantage of greater familiarity with changing technologies, which shape industry best practices in a number of ways. Social media and online marketing are becoming increasingly common and important ways to reach clients, as Christner proved with the success of his food truck program. Sophisticated data analysis and modeling are now equally invaluable items in the broker’s toolbox.
“The younger generation probably embraces it more and adapts better,” Simons said. “They have more innovative thoughts as far as asking, ‘What else can I do with this technology and data to look at things a different way?’ ”
Tips for Success
So what can entry-level brokers learn from our Under 40 winners and finalists? First and foremost: Pounce on every new venture.
“I would say take advantage of every single opportunity, meaning every chance to be involved with other professionals [in the industry],” O’Brien Hogan said.
Simons echoed that advice. “Jump on every opportunity, and there are many in the industry, but you have to make the most of them,” she said. “Work hard. Be confident.”
And that uncle, sister or cousin with experience in the field? Tap into their knowledge base, and pick mentors’ brains as often as possible.
“The best experience comes from clinging onto some good people who are willing to teach you,” Roos said.
Finally, the best brokers — no matter what their age — always have an in-depth knowledge of their customers’ industries. Specializing in areas of interest helps develop expertise that clients covet.
“Knowing the industry is key,” O’Brien Hogan said. “From all different angles — not just insurance, but all the little components that go into risk management.”
While challenges remain for the industry’s stability and growth potential, the growing number of Under 40 Power Broker® winners and finalists offers hope that the industry will remain dynamic for the future.
Listing of Power Broker Winners and Finalists Under 40:
Driving Success for GM
Al Gier, GM’s director of Global Risk Management & Insurance, felt so strongly about Elisa Black’s work in 2013 that he nominated her personally as a Power Broker®. That’s quite an endorsement. In fact, Gier and Frida Berry, GM’s manager of Liability Risk Financing, agree that not only did Black manage that critical global juggling act, but she did it with her professional, focused style.
“Elisa was instrumental in helping reduce collateral requirements and improving the efficiency of the global claims handling process,” Gier said. “Her client philosophy focuses on being prepared and setting the marketing standard at the forefront of the negotiation.”
Gier explained that any broker can negotiate with a carrier post-quote. More impressive is doing the legwork so you come to the table prepared to negotiate ahead of time, a Black trademark. Also, for a large global enterprise, he said, timing is everything. So finalizing financial negotiations early allows the time to fulfill the administrative and contractual obligations of an insured — the lifeline of most international programs.
Gier said Black is great at articulating obligations and time constraints.
Bermuda Excess Market Wizardry
With the automotive market continuing to recover, the Bermuda excess market is looking to boost premiums come renewal time. To help alleviate that pricing stress, Chris Heinicke and his Aon team do their best to negotiate with markets to keep premiums from climbing.
In 2013, Heinicke faced a specific challenge for a client that was in the midst of a claims issue with one market that had a sizable amount of capacity on the excess casualty program. The issue was on a completely separate line of business, but was enough of a problem that the client had made the decision to cut this market from all of their lines of business. That decision was made after the entire program had already been quoted at the expiring premium and there was little to no capacity left in Bermuda. Heinicke and his team worked quickly by increasing capacity with the only market in Bermuda that had something available, and then worked with the U.S. and London teams to get the terms, pricing and capacity needed to replace the market. In the end, the client was pleased with the results and impressed at the quick response.
“Chris’ knowledge of the Bermuda markets helped us structure a program with the broadest coverage,” said the liability risk financing manager from another large automaker. “We have a very good risk profile, and Chris ensures we aren’t being charged improperly.”
A risk manager from a third automaker credited Heinicke with doing a “fantastic job” in helping the company identify critical areas the Bermuda markets focus on, as well as what is needed to communicate those key areas to underwriters.
Marshalling the Marsh Resources
In this case, the product over-shipment would create a much larger balance sheet exposure than the client would normally face. Also, the client’s treasury department wanted to use the large shipment to enhance cash flow as well as its borrowing base. Kowalski found a solution involving both private insurance and governmental support to manuscript a program that not only provided vital risk mitigation, but also enhanced this client’s cash flow management needs.
To make things happen, Kowalski often collaborates with Marsh brokerage teams on a global scale — from Detroit, New York, and Chicago to Bermuda, London, Zurich and various offices throughout Asia. Along the way, he has successfully placed complex risk finance programs involving more than 73 global markets and billions of dollars of capacity for a single line of coverage.
“Michael is our client executive and we have worked together for a number of years,” said Al Gier, director, Global Risk Management & Insurance at General Motors. “He has the skills we like to see in a broker — mainly, responsiveness and delivering the proper resources quickly.”
Your Workers’ Safety May Be at Risk, But Can You See the Threat?
Deadly violence at work is covered extensively by the media. We all know the stories.
Last year, ex-reporter Bryce Williams shot and killed two former colleagues while they conducted a live interview at a mall in Virginia. In February of this year, Cedric Larry Ford opened fire, killing three and injuring 12 at a Kansas lawn mower manufacturing company where he worked. Also in 2015, 14 people died and 22 were wounded by Syed Farook, a San Bernardino, California county health worker, and his wife, who had terroristic motives.
Active shooter scenarios, however, are just the tip of the iceberg when it comes to violence at work.
“Workplace violence is much broader and more pervasive than that. There are smaller acts of violence happening every day that directly impact organizations and their employees,” said Bertrand Spunberg, Executive Risks Practice Leader, Hiscox USA. “We just don’t hear about them.”
According to statistics compiled by the FBI, the chance that any business will experience an active shooter scenario is about 1 in 457,000, and the chance of death or injury by an active shooter at work is about 1 in 1.6 million.
The fact that deadly attacks — which are relatively rare — get the most media attention may lead employers to underestimate the risk and dismiss the issue of workplace violence as media hype. But any act that threatens the physical or psychological safety of an employee or that causes damage to business property or operations is serious and should not be taken lightly.
“One of the core responsibilities that any organization must fulfill is keeping employees safe, and honoring that duty is becoming more challenging than ever,” Spunberg said.
“Workplace violence is much broader and more pervasive than that. There are smaller acts of violence happening every day that directly impact organizations and their employees. We just don’t hear about them.”
— Bertrand Spunberg, Executive Risks Practice Leader, Hiscox USA
Desk Rage and Bullying: The Many Forms of Workplace Violence
Bullying, intimidation, and verbal abuse all have the potential to escalate into confrontations and a physical assault or damage to personal property. These violent acts don’t necessarily have to be perpetrated by a fellow employee; they could come from a friend, family member or even a complete stranger who wants to target a business or any of its workers.
Take for example the man who killed three workers at a Colorado Spring Planned Parenthood in April. He had no affiliation with the organization or any of its employees, but targeted the clinic out of his own sense of religious duty.
Companies are not required to report incidents of violence and many employees shy away from reporting warning signs or suspicious behavior because they don’t want to worsen a situation by inviting retaliation. It’s easy, after all, to attribute the occasional surly attitude to typical work-related stress, or an office argument to simple personality differences that are bound to emerge occasionally.
Sometimes, however, these are symptoms of “desk rage.”
According to a study by the Yale School of Management, nearly one quarter of the population feels at least somewhat angry at work most of the time; a condition they termed “chronic anger syndrome.” That anger can result from clashes with fellow coworkers, from the stress of heavy workloads, or it can overflow from family or financial problems at home.
Failure to recognize this anger as a harbinger of violence is one key reason organizations fail to prevent its escalation into full-blown attacks. Bryce Williams, for example, had a well-documented track record of volatile and aggressive behavior and had already been terminated for making coworkers uncomfortable. As he was escorted from the news station from which he was terminated, he reportedly threatened the station with retaliation.
Solving Inertia, Spurring Action
Many organizations lack the comprehensive training to teach employees and supervisors to recognize these warning signs and act on them.
“The most critical gap in any kind of workplace violence preparedness program is supervisory inertia, when people in positions of authority fail to act because they are scared of being wrong, don’t want to invade someone’s privacy, or fear for their own safety,” Spunberg said.
Failing to act can have serious consequences. Loss of life, injury, psychological harm, property damage, loss of productivity and business interruption can all result from acts of violence. The financial consequences can be significant. In the case of the San Bernardino shootings, for example, at least two claims were made against the county that employed the shooter seeking $58 million and $200 million.
Although all business owners have a workplace violence exposure, 70 percent of organizations have no plans in place to avoid or mitigate workplace violence incidents and no insurance coverage, according to the National Institute for Occupational Safety & Health.
“Most companies are vastly underprepared,” Spunberg said. “They don’t know what to do about it.”
Small- to medium-sized organizations in particular lack the resources to develop risk mitigation plans.
“They typically lack a risk management department or a security department,” Spunberg said. “They don’t have the internal structure that dictates who supervisors should report a problem to.”
With its workplace violence insurance solution, Hiscox aims to educate companies about the risk and provide a solution to help bridge the gap.
“The goal of this insurance product is not so much to make the organization whole again after an incident — which is the usual function of insurance — but to prevent the incident in the first place,” Spunberg said.
Hiscox’s partnership with Control Risks – a global leader in security risk management – provides clients with a 24/7 resource. The consultants can provide advice, come on-site to do their own assessment, and assist in defusing a situation before it escalates. Spunberg said that any carrier providing a workplace violence policy should be able to help mitigate the risk, not just provide coverage in response to the resultant damage.
“We urge our clients to call them at any time to report anything that seems out of ordinary, no matter how small. If they don’t know how to handle a situation, expertise is only a phone call away,” Spunberg said.
The Hiscox Workplace Violence coverage pays for the services of Control Risks and includes some indemnity for bodily injury as well as some supplemental coverage for business interruption, medical assistance and counseling. Subvention funds are also available to assist organizations in the proactive management of their workplace violence prevention program.
“Coverage matters, but more importantly we need employees and supervisors to act,” Spunberg said. “The consequences of doing nothing are too severe.”
To learn more about Hiscox’s coverage for small-to-medium sized businesses, visit http://www.hiscoxbroker.com/.
This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Hiscox USA. The editorial staff of Risk & Insurance had no role in its preparation.