Within the next two years, nearly a quarter of the insuranceindustry will be thinking more about golf, grandchildren and apossible move to Florida than about premiums, competition andconstructive total losses.

That's because, by 2018, 25 percent of risk management andinsurance professionals will be at or near retirement age,according to a McKinsey & Company report. As theseexperienced employees exit the industry, too few younger workerswill be replacing them. Only 27 percent of insurance employees areunder the age of 35, according to the U.S. Bureau of Labor Statistics.

The talent shortage created by the lack of qualified applicantsin the hiring pipeline is well documented. But this scarcity is alsopoised to create a significant dearth of knowledge and experiencein the risk management and insurance world. As cohorts of industryprofessionals walk out of their offices for the last time, they'lltake with them a plethora of technical and institutional knowledgethat many newer employees have not yet accrued through on-the-jobexperiences, partnering and coaching with more-seasoned colleagues,and informal or formal educational resources.

This poses a particular problem in the claims space, wheresometimes the only person standing between an insurance company andbad-faith claims litigation is a relatively inexperienced claimsrepresentative who was given a high level of discretionaryauthority to settle claims. Michael Durovic, executive vicepresident at Pharos Claims Services, is already starting to see theeffects of this “brain drain” on a rapidly changing industry.

“The claims industry field is becoming more complicated andlitigious, while at the same time, fewer company-sponsored trainingopportunities exist for staff,” Durovic said. “It's a struggle toattract talented employees and help them grow into more advancedpositions.”

At Pharos, Durovic combats that struggle by providing employeeswith monthly guest speakers, access to industry conferences, arobust mentor program and enrollment in industry designationprograms, the latter of which, he says, provide an essentialbig-picture look at the business. He should know; he holds 17professional insurance designations.

“Earning designations has helped me better understand thefunctions of an insurance company and how each one interacts withthe others. I can draw on this information during meetings andplanning sessions to help provide solutions. I may not always havethe answer, but I can start conversations by asking questions so wecan determine how to proceed.”

Durovic's passion for lifelong learning places him squarelywithin the 63 percent of working Americans who have taken a courseor gotten additional training in the past 12 months to improvetheir job skills or expertise as it relates to career advancement,according to a recent report by the Pew Research Center.

Much of this learning takes place through organization-sponsoredor -supported educational opportunities. However, only half oforganizations nationwide pay for training and certifications thatemployees earn outside the company, according to a CareerBuilder study.

Related: Insurance industry education is more than justletters after your name

(Photo: Shutterstock)

Motivated to learn

At the same time, organizations are putting less emphasis onin-house training. Across all types of organizations, onlyone-third of employees say the training and career developmentopportunities in their organization are excellent or good, asindicated by a Spherion study.

However, individuals who do pursue continuous educationcertainly see it as a career booster, as research shows thatorganizations reward employees who seek continuing professionaleducation. According to a study conducted by EvoLLLution, 87 percent of employers saideducational attainment positively affects salary and othercompensation. Many said continuing education makes employees “morequalified” and “easier to promote.” Within the risk management andinsurance industry, 72 percent of professionals who complete theAssociate in Claims (AIC) designation, for example, say theyreceived a promotion within two years.

Regardless of the motivation, employees who are invested inexpanding their knowledge base within their field of expertise areinvested in their industry, and they can be equally invested intheir companies when employers support their efforts. This isimportant for all organizations to remember, as the talent shortageis not limited only to the risk management and insuranceindustry.

Many industries are experiencing the brain drain and findthemselves competing for the same highly skilled individuals whocould become loyal employees rather than job hoppers if they seeclear career paths within their organizations. Employers that canprovide this engagement will see reduced turnover and better returnon investment in employee acquisition costs, along with improvedproductivity.

Fortunately, employers can attain positive results in many waysbeyond offering traditional classes. For insurance professionals,exploring digital continuing education channels, pursuingnetworking opportunities and establishing industry connections playan important role.

“All around the country, there are opportunities for insuranceprofessionals to network and continue to learn,” said Tim Pena,CPCU, a casualty claims adjuster for the Automobile Club ofSouthern California. “It's a chance to interact with people who dowhat you do — you could meet your next boss. Whether it's yourfirst year working or you're a 35-year veteran, you can still takeaway something new or interact with somebody who can make adifference or enhance your career.”

For Pena, the benefits of lifelong learning extend far beyondtechnical industry knowledge. As he explained, “Getting thatcollege degree is great, but this industry is about psychology andsociology; it's about people skills and organization. There are somany skills that you can't pick up solely from a textbook. You arenever done learning, so the more education you can amass, thebetter.”

Mary Ann Cook, CPCU is senior vicepresident of knowledge resources and content development at TheInstitutes.