The US insurance industry is grappling with a shortage of skilled workers, with projections indicating a potential loss of 400,000 workers by 2026. This shortage poses challenges such as knowledge gaps, talent scarcity, and the necessity to embrace new technologies. Left unaddressed, these issues could result in competitive setbacks, operational inefficiencies, regulatory risks, and customer retention challenges, jeopardizing business sustainability. (Insurance Business America, 2023)
One way that a young insurance professional can stay relevant in the industry is by stacking skills.
What is Skill Stacking?
Skill stacking is a strategy where individuals intentionally develop a diverse set of skills across different domains rather than specializing deeply in a single area. Instead of being proficient in just one skill, we combine multiple skills that complement each other, creating a unique and valuable skill set.
Skill stacking is about building a portfolio of complementary skills that together make individuals more well-rounded, resourceful, and resilient in their personal and professional lives.
What Kind of Skills to Learn as a Young Insurance Professional?
Although some insurance job scopes require specialized skills, it’s particularly valuable where a diverse skill set can set you apart. Here are some skills you may already possess or could consider adding to your arsenal:
1. Core Insurance Knowledge
Start with a solid foundation in insurance principles, products, and regulations. This includes understanding different types of insurance (life, health, property, casualty, etc.), underwriting, risk assessment, claims processing, and compliance.
In the US, it would be beneficial to build up the knowledge on the basics of insurance with the Associate in Insurance (AINS) certification.
In Malaysia, I believe that the Certificate of the Malaysian Insurance Institute (CMII) is a good start for new insurance professionals. You can even try out the CMII Quiz that I created on Python! If you want a taste of how an MII short webinar is like, check out my review of A Practical Understanding of General Insurance Underwriting and Claims Management.
2. Technical Skills
Develop proficiency in relevant software and tools used in the insurance industry. This might include CRM systems, underwriting software, policy management platforms, and data analytics tools. Proficiency in spreadsheet software like Excel is crucial, given its widespread usage across virtually every industry.
Personally, I had learnt the basics of Excel during my university days and was able to improve on my own using YouTube. Check out my article on the 7 Must-Know Excel functions for Insurance Professionals to learn about my go-to formulas. If you are new at Excel and want to start, I suggest that you join virtual classes that teach basic Excel if you can afford to.
3. Customer Service
Excellent customer service skills are crucial in insurance. Focus on communication skills, empathy, and problem-solving abilities. Learn to navigate difficult conversations and provide clear explanations of complex insurance concepts to clients.
This is a skill that I still struggle with, considering that I’m much more comfortable working with data instead of people. Working with my colleagues in the customer service department has made me appreciate how they operate to deliver the best quality of service to customers, especially when handling claims. After all, insurance is a business of promise.
4. Risk Management
Gain expertise in risk management practices. This involves identifying, assessing, and mitigating risks for both clients and the insurance company. Understanding risk factors in various industries and how to manage them effectively is valuable.
In the US, it would be beneficial to build up the knowledge on the basics of risk management with the Associate in Risk Management (ARM) certification. In Malaysia, I believe that MII’s short course Foundation in Risk Management would be beneficial.
5. Legal and Regulatory Knowledge
Stay updated on insurance laws, regulations, and compliance requirements. This includes knowledge of industry standards, legal frameworks, and ethical guidelines. Compliance with regulations is essential for both professionals and insurance companies.
I personally don’t follow insurance laws closely, but I do check in on PIAM’s News Release and Bank Negara’s Press Release from time to time.
6. Financial Literacy
Understand the financial aspects of insurance, including premium pricing, underwriting profitability, and investment strategies. Familiarize yourself with financial statements, budgeting, and basic accounting principles.
Once again, I’m grateful that I have learnt the basics of the financial aspects of insurance in university. In Malaysia, for AMII Level 1 students, I find the subject 302 Insurance and Operations relevant to this area of subject.
7. Analytical Skills
Develop strong analytical skills to interpret data and make informed decisions. This includes analyzing insurance trends, claims data, and market dynamics. To navigate effectively, it’s crucial to stay mindful of our position in the Insurance Market Cycle (whether it’s a hard or soft market) and comprehend how our decisions can influence coverage, rates, and underwriting regulations. Data-driven insights can also help identify opportunities for growth and risk mitigation.
This is a skill that I’m currently working on as it takes time for me to interpret data at my job. In Malaysia, I find it helpful to be updated on the Malaysian General Insurance industry performance using the ISM Statistical Yearbook.
8. Networking and Relationship Building
Build a strong professional network within the insurance industry. Attend industry events, join professional associations, and connect with peers, mentors, and potential clients. Networking can open doors to new opportunities and help you stay updated on industry trends.
In the US, the Institutes’ CPCU Society has networking opportunities that you should consider joining like the In2Risk and events organised by local Chapters. Even Insurance Nerds have their own Slack community! Also don’t underestimate LinkedIn (don’t be shy to send me a message!)
9. Continuous Learning
The insurance industry is constantly evolving, so commit to lifelong learning. One of the best ways to stay updated on industry news is with magazines like Insurance Business America, Insurance Journal and PropertyCasualty360. Pursue relevant certifications, workshops, and training programs to expand your knowledge and skills.
So, What Skill Should You Learn?
I know it seems like vague advice, but in the end, it really depends on your interests and your job scope. I would personally suggest that you take the time to look at the vacancies displayed in job portals and take note of the skills that are essential to that role.
When I was looking for my next job, I noticed that most underwriter jobs require the following skills:
- Analytical skills
- Risk assessment
- Attention to detail
- Legal and regulatory knowledge
- Industry-specific expertise
- Decision-making abilities
- Communication skills
To be very honest, I think I only had 4 out of 7 skills when I was applying, yet I knew that I had other skills that would boost my chances. I also remember that in the interview, one of the managers was very interested in my writing skill as I used to write a lot during my younger days, so that definitely helped stand me out from other job applicants.
The key is understanding which skills will advance your career and identify transferable skills that you may already have. It may take lots of time, effort and money initially, but it’s also a calculated risk that you’re willing to wager to establish yourself as a competitive professional in the industry.
Conclusion
In today’s fast-changing world of technology, insurance professionals need to be flexible to handle industry shifts. It’s crucial for us to know our job well and plan ahead by learning new skills early. This helps us manage our time and effort better and stay competitive in the changing market.
It all comes down to a very important self-aware question: What skill sets do you currently have that sets YOU apart from your colleagues in the industry?
