Insurance companies definitely feel at home in Wisconsin. The state is fourth in the nation for the number of companies, with nearly 250 life, health, and property casualty organizations headquartered here.
Nearly every corner of the state is home to an insurance or financial services firm, from Northwestern Mutual in Milwaukee and American Family in Madison, to Acuity in Sheboygan and Church Mutual in Merrill.
“More people work in insuance and financial services in Wisconsin than in the dairy industry or agriculture,” said Scott Beyer, director of the insurance program at the University of Wisconsin-Oshkosh, which launched a minor degree program in insurance to respond to the industry’s call for more workers. “The insurance industry provides a lot of high-quality jobs in our state.”
Several insurance and financial services firms across Wisconsin are in expansion mode. Acuity in Sheboygan recently announced a $130 million expansion, while Northwestern Mutual is building a 32-story tower in downtown Milwaukee with an expected price tag of $450 million. Other companies are reporting strong profits and planning for a brighter future.
“Wisconsin has a great regulatory environment and we also have a great workforce,” said John Bykowski, CEO for Secura Insurance in Appleton.
That workforce is growing. A study by the Wisconsin Insurance Alliance showed that in 2011 more than 80,000 people across the state were employed in the insurance industry — an 11 percent increase over the decade ending in 2010. In Sheboygan, Acuity has added nearly 250 people in the past two years and is making plans to add more as the company continues to grow, said Ben Salzmann, the company’s president and chief executive officer.
“We saw 14.4 percent growth in 2013. We continue to succeed because we’re focused on innovation,” he said. “Wisconsin is a great state to do business in. The state knows we are providing good jobs.”
For Secura, which saw its written premiums revenue increase 7.9 percent in 2012 and its assets grow to $850 million, offering a variety of products has proven an effective growth strategy, Bykowski said. The company offers traditional home and auto insurance, products for businesses and non-profit organizations, and coverage for farm operations.
“It’s about spreading your risk across a variety of lines,” he said.
While Secura offers a variety of products to customers, other insurers in Wisconsin find success specializing in one area, such as Church Mutual, a Merrill organization that offers insurance for religious organizations, and Jewelers Mutual in Neenah, which insures jewelry stores and offers insurance coverage for client’s personal jewelry collections.
Northwestern Mutual, which offers investment products as well as life insurance, is doing well because consumers are looking for more security following the economic downturn and financial crash of 2008, said Sandy Botcher, a vice president with the firm and the chairperson of the Campus Connection project.
“We’ve always been a company that looks long-term when it comes to investments and that is what consumers are looking for,” she said. “There’s a big demand out there for comprehensive financial planning and people want expert advice. We’re able to offer our customers a portfolio of excellent products along with that advice.”
Educating the next generation
The insurance industry is facing a coming worker shortage, Beyer said. Estimates predict 50 to 65 percent of operational staff in the insurance indus try plan to retire within the next 10 years, he said. “There’s some real concern there about who will take over,” Beyer said.
“When students graduate from the program at UW-Oshkosh, they come out with an understanding of how the industry works and are already on the path to receiving some of their professional designations such as CFU,” Beyer said.
The university solicits feedback from insurance firms on the training provided, and Beyer said former students report enjoying their new jobs in the insu rance industry.
“We’re really trying to partner with companies to raise the profile of the insurance industry and our program so students know about the variety of careers available and that these are good, well-paying jobs,” Beyer said.
Salzmann said UW-Oshkosh and other UW schools play an integral role in educating the future workforce. “We have wonderful schools here that are turning out employees who are fitting right in,” he said.
