Recruiting brokers to your business
Peter Hohman of the Insurance Institute of Canada and Paul Martin of RRJ Insurance Brokers discuss the findings of the Insurance Institute's latest insurance industry demographic study and how it might impact broker recruitment in the future.
Video transcript below:
David Gambrill: New demographic research shows that brokers and others in the insurance industry are actively recruiting, bringing fresh new talent into a greying profession. But are their efforts so far enough? I am David Gambrill, welcome to Insurance Business TV.
The Insurance Institute of Canada launched a landmark demographic study of the entire insurance industry in 2008. It showed that a large number of brokers and adjusters in particular were due to retire between 2007 and 2017.
Peter Hohman, CEO, Insurance Institute of Canada
Peter Hohman: So when we look at the demographics for brokers in the province of Ontario for example, what we see is a significant number of males between the ages of 46 and 65 with the median age of around 59. Now 59 is the actual average retirement age in the insurance industry. So with an imbalance towards the retirement age, you can see that the broker community is facing some significant challenges.
David Gambrill: A new institute studies released this year, shows brokers have been actively recruiting to make up the gap.
Peter Hohman: So the 2012 findings do tell us there has been increase in the number of brokers and agents since 2007. So for example in British Columbia, we see that there is increase of 25% in the number of agents and brokers, in Alberta it’s 24% and in Ontario it’s 13%. Now the concentration of this increase has been from the [echo cohort] that stores individuals the ages of 17 to 32. So quite clearly the recruitment average have begun to help offset that overweight in the boomer demographic.
David Gambrill: But has it increased enough and if it hasn’t what more can brokers do to shore up their ranks?
Paul Martin, President, RRJ Insurance Brokers Ltd.
Paul Martin: The demographic research report talks that we must diversify the way that we recruit people. Traditionally we think of youth as our goal to recruit people. What we need to do is look outside that and look to new focuses on people from new immigrants or those people from diversified businesses that are now redundant and we are looking to attract them into our business.
David Gambrill: And going forward, it is not just the under 25 set that the brokers need to recruit.
Paul Martin: We need to focus on the under 45, those people are maybe new immigrants to our country and we can focus on their skill levels that they have adapted from the other countries and educate and train them in how our business operates and runs. These are good people to bring into the brokerage force that we have today.
David Gambrill: As brokers look to expand their ranks, they are also looking to diversify. The big question is whether they can do this in time, before they start losing senior people in their profession. I am David Gambrill, thank for watching Insurance Business TV.