Rising stars
GENERATION
THE NEW
The re/insurance industry has not historically been as attractive to young people as a career choice as other financial services sectors such as banking or fund management. But that is
changing. Intelligent Insurer speaks to 40 young executives—all under 35— who are making waves in the industry.
The lure of big bonus cultures combined with the perception of a fast-paced and cutting-edge innovation has made banking the first choice of many of the best and most ambitious graduates. In contrast, the reinsurance industry in particular has been associated with a more traditional culture and a slower pace— of both change and innovation. In the eyes of young ambitious career-minded individuals these attributes have limited its appeal. This perception is starting to change, however, and two specific things have happened in recent years to accelerate this process. First, the banking crisis and subsequent fallout (including mass
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he re/insurance industry has long played second fiddle to other more glamorous financial sectors such as banking when it comes to attracting and retaining the best talent.
redundancies) highlighted the sometimes boom and bust nature of banking. The rewards may be great at times but its stability can sometimes be questioned. Certain aspects of that fallout also damaged the sector’s reputation in other ways. Re/insurance, in contrast, came out of the financial crisis and economic downturn relatively unscathed. With the exception of AIG’s problems (which were more related to its derivatives portfolio) the sector had no major problems and emerged with its reputation intact. The other change has been related to the sector’s increasing innovation and, ironically perhaps, its ever closer ties to the banking sector. The rapid rise of insurance-linked securities (ILS) and many other structures that match investors from the capital markets with insurance-linked risks mean the sector is looking a lot more innovative and attractive than it has done before. Intelligent Insurer’s Rising Stars supplement is designed to showcase some of the young and emerging talent in the industry. We have profiled 40 young executives, all aged 35 or under, from re/insurance companies and brokers and asked them why and how they ended up in this sector and what their hopes and aspirations are now. Their answers make interesting reading. The overall message seems to be that there has been a very distinct shift in perceptions of the industry and many young people increasingly see it as being one of opportunity and exciting career prospects. Erik Soria, branch manager, P&C treaty reinsurance at QBE
Re Bermuda, says he believes the industry is a very attractive prospect once it is understood. Better links with some of the top universities also help. “The industry is becoming more known to young professionals and more sought out than ever before,” Soria says. “There are more risk management and actuarial science courses offered at top universities, tipping off future talents to our industry’s existence. “Similarly, there is a huge need in our industry for talent in interesting
fields related to ILS, catastrophe modelling, actuarial sciences and various analytical roles, to name a few. On the surface reinsurance may appear dull to the average college student, but all it takes is a few months in the industry to realise that it’s actually quite the opposite.” He also believes that a talent shortage originated from the fact
that some companies cut back on training programmes and schemes to encourage young people to join the industry. “The industry as a whole agrees this was a mistake, and now you do see a lot of proactivity to change this, which is in turn a huge opportunity for young professionals entering the space,” Soria says. “The experience and exposure that is available for young professionals is priceless and ripe for the taking. There was a study I read not too long ago that put 85 percent of the workforce in reinsurance over the age of 40. This industry is full of mentors that can bring in the next generation of talent. Career development is at the forefront for many reinsurance companies, and I think the training programmes are coming back because we need them.” Nick Bellmont, vice president, Holborn, adds that the industry is rarely given credit for just how innovative it really is. “There is a cutting edge to re/insurance that people don’t realise exists. Just
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