Financial Services Sector (Insurance Companies)

Transcription

1 Financial Services Sector (Insurance Companies) A Quantitative Research on Labour Market Demands in the Financial Services Sector (Insurance Companies) in Trinidad and Tobago February,

2 TABLE OF CONTENTS 1.0 ACKNOWLEDGEMENTS EXECUTIVE SUMMARY INTRODUCTION Preface METHODOLOGY Research Method Information Gathering Primary Research Secondary Research Pilot Testing Census Size Data Analysis FINDINGS GEOGRAPHIC DISTRIBUTION ORGANIZATIONAL CHARACTERISTICS Operational Type Type of Business Years in Operation EMPLOYMENT PROFILE Number of Employees Sex Distribution Full Time vs. Part Time work Job Titles and Occupational Areas Levels of Employment Work Permits OUTSOURCING Insurance Companies that Outsourced Job Functions Method of Outsourcing Commonly Outsourced Job Functions Reasons for Outsourcing

3 6.5 CURRENT VACANCIES Current Vacancies per Qualification Level JOB OPPORTUNITIES AND DISLOCATIONS EXPECTED Job Opportunities Envisaged Job Dislocations Ease of Sourcing s Labour Challenges Years of Work Experience required for various Employment Levels ORGANISATIONAL CHANGES Areas of Expected Organisational Changes STAFF TRAINING Organisations Offering Staff Training Frequency of Staff Training Apprenticeship, Internship and Mentorship Programmes Formality of Apprenticeship, Internship and Mentorship Programmes Efficacy of Training Providers Customer Service Qualification EMPLOYEE TRAITS Most required traits identified for Insurance Company Employees Traits most lacking amongst typical Employees ANALYSIS CONCLUSION REFERENCES APPENDICES Appendix 1: National Qualification Framework Appendix 2: Job Titles and Occupational Areas amongst Insurance Companies by Level Appendix 3: Sample Vacancy Advertisement for T&T the Insurance industry (2014) Appendix 4: Insurance Industry Training Providers Appendix 5: List of Current Vacancies amongst Insurance Companies surveyed

4 LIST OF TABLES Table 1: Number of Respondents per Organisational Type Table 2: Sex Distribution of Insurance Company Employees Table 3: Levels of Employment amongst Insurance Companies Table 4: New and Emerging Job Functions and Attributed Reasons for their Recency Table 5: Job Opportunities expected within the next 12 months LIST OF FIGURES Figure 1: Number of Insurance Companies per Operational Type Figure 2: Years in Operation Figure 3: Number of Employees per Insurance Company Figure 4: Commonly Outsourced Job Functions Figure 5: Insurance Companies with Vacancies Figure 6: Current Vacancies per Qualification Level Figure 7: Ease of Sourcing s Figure 8: Years of Work Experience required for various Employment Levels Figure 9: Type of Organisational Changes Expected Figure 10: Traits Most Required amongst Employees Figure 11: Traits Most Lacking amongst Employees

5 GLOSSARY OF ACRONYMS A Level Advanced Level (certification) ACA Accredited Claims Adjuster ACCA Association of Chartered Certified Accountants AIAA - Associate, Insurance Agency Administration (designation) ALHC Associate, Life and Health Claims (designation) AML Anti-money laundering ARA - Associate, Reinsurance Administration (designation) ATTIC Association of Trinidad and Tobago Insurance Companies BPO Business Process Outsourcing BSc. Bachelor of Science (degree) CBTT Central Bank of Trinidad and Tobago CCMF Caribbean Centre for Money and Finance CFT Counter Financing of Terrorism CII Chartered Insurance Institute (certification) CSEC Caribbean Secondary Education Certificate CSOTT Central Statistical Office of Trinidad and Tobago CVQ Caribbean Vocational Qualification CXC Caribbean Examinations Council DIC Deposit Insurance Company FATCA Foreign Account Tax Compliance Act FATF Financial Action Task Force FIU Financial Intelligence Unit of Trinidad and Tobago FLMI Fellow, Life Management Institute (certification) GCE General Certificate of Education (UK) GDP Gross Domestic Product GoRTT The Government of the Republic of Trinidad and Tobago IMBA International Master of Business Administration (degree) IT Information Technology 5

6 LCCI London Chamber of Commerce and Industry (certification) LOMA Life Office Management Association (certification) MBA Master of Business Administration (degree) MS Microsoft (certification) MSc. Master of Science (degree) NOS National Occupational Standards NTA National Training Agency O Level Ordinary Level (certification) OJT On-the-Job Training Programme SQL Structured Query Language (A Microsoft Relational Database Management system) T&T Trinidad and Tobago TP Training Provider TTII Trinidad and Tobago Insurance Institute TTNVQ Trinidad and Tobago National Vocational Qualification TVET Technical and Vocational Education and Training UK United Kingdom USA United States of America 6

7 1.0 ACKNOWLEDGEMENTS The Research, Planning and Development Department of the National Training Agency would like to express sincere gratitude to all participating organisations for their contribution to this quantitative research into the Financial Services Sector (Insurance Companies) in Trinidad and Tobago. Through their cooperation and candor, a better understanding of the composition of the workforce in the Financial Services Sector (Insurance Companies) was established. Ultimately, this cooperation from industry stakeholders provided a basis through which targeted and strategic policy improvements in the sector could be formulated and administered with a more reliable level of efficacy. 7

8 2.0 EXECUTIVE SUMMARY This study was commissioned to ascertain quantitative, demand side, labour market information regarding employment profiles, job opportunities and qualifications in the Financial Services Sector (Insurance Companies). Additional information pertaining to employee compensation, efficacy of training providers, apprenticeship-type programmes, organisational changes, and the employee traits required for this subsector was also captured. Life and general insurance companies from the Central Bank s 2014 database were targeted for this survey. The census consisted of 29 active insurance companies in Trinidad and Tobago. A standardized questionnaire was developed and administered through face-to-face interviews with senior industry representatives. Quantitative data were collected over a five-week period. The data collected was then analyzed and presented. Data for 17 insurance companies comprising 1782 employees were captured. The findings revealed that at least 66 vacancies existed within surveyed insurance companies, with 10 job opportunities anticipated within the next 12 months. The majority of insurance company workers (34% or 355) appeared to be employed at Level 2 (Skilled s). 1 A significant number of insurance companies surveyed (71%) engaged in some degree of outsourcing for non-core activities, and only 1 of these organisations applied for work permits within the last 12 months. Moreover, there appeared to be new and emerging job functions in the areas of compliance reporting and anti-money laundering/counter financing of terrorism (AML/CFT), due to increased Central Bank and Financial Intelligence Unit (FIU) regulatory requirements. Other, budding job 1 See Appendix 1, Table 28: National Qualification Framework 8

9 functions were in areas of internal auditing, actuarial analysis (for general insurance), and direct insurance sales personnel. Over 180 job titles amongst insurance companies were identified. Respondents indicated that organisational changes were primarily expected in the Training/Retraining of existing staff activities over the next 12 months. The vast majority (99%) of workers in the insurance companies surveyed were employed on a full time basis and the ratio of male-to-female workers was disproportionate at approximately 1:2. Respondents revealed that the most desired trait amongst insurance company employees was Honesty, whilst the trait most lacking was Punctuality. Ninety four percent of the insurance companies provided training to their employees primarily on an Ongoing basis. Additionally, 47% of companies admitted to having an apprenticeship, internship, or mentorship programme either formally or informally established. Seventy six percent (76%) of respondents indicated some level of difficulty in sourcing appropriate labour. The primary reasons for this challenge included uncompetitive wages and the lack of core insurance qualifications amongst the available pool of workers. Additionally, an acute shortage of soft skills was reported, even though customer service was chiefly depended upon to achieve competitive advantage. 9

10 3.0 INTRODUCTION 3.1 Preface The National Training Agency (NTA), in keeping with its core objective to coordinate and regulate the Technical and Vocational Education and Training (TVET) system through market driven research 2 conducts several surveys into various economic sectors, paying particular attention to their labour market trends. In 2013, as part of its National Diversification Strategy the Government of the Republic of Trinidad and Tobago (GoRTT), through the Ministry of Planning and Sustainable Development, identified seven (7) key business clusters, which have been prioritized for development in an effort to diversify the economy. One of these business clusters identified was Finance. 3 Consequently, the NTA has utilized this strategic intent, to guide its selection of the Financial Services Sector for this labour market study. Financial services contribute approximately 15.5% of the Gross Domestic Product (GDP) of Trinidad and Tobago (T&T), and is the highest contributor to GDP after the petroleum sector. 4 According to the Central Statistical Office s (CSO s) Industry Classifications, the Financial Services Sector comprises 19 subsectors, including Commercial and Merchant Banks, Insurance, Real Estate and Credit Unions. Moreover, financial services are estimated to employ over 50,000 persons, accounting for 8% of the total working population in Trinidad and Tobago. 5 2 NTA Strategic Plan , p.4 3 Ministry of Planning and Sustainable Development (2013) Guiding T&T s Diversification Thrust

11 Within recent times the insurance industry has been of topical importance, largely due to the significant impact that the insolvency of a major insurance company 6 and its associated businesses, has had on the economy. This saw approximately 2000 workers, 7 100,000 individual clients, 450 group health and life clients, 180 group pension plan clients and 14,000 pensioners being directly affected. 8 The GoRTT has demonstrated its commitment to the insurance subsector primarily by its legislative, regulatory and institutional support for its operations. This has been exemplified in the expansion of the Central Bank s Office of the Financial Services Ombudsman to oversee insurance company activities, and the impending modernization of the Insurance Act (1980), via the Insurance Bill (2013). 9 The insurance industry represents a significant component of the economy by virtue of the amount of premiums it collects, the scale of its investment and, more fundamentally, the essential social and economic role it plays by covering personal and business risks. 10 Insurance companies collectively, manage approximately TTD $82 billion in assets, 11 which represents a hefty portion of the total asset value in the financial system disregard for_2_000_clico_workers html html?m=y&smobile=y %20December% pdf 11

12 Insurance companies refer to businesses that provide coverage, in the form of compensation resulting from loss, damages, injury, treatment or hardship in exchange for premium payments. 12 There are two (2) main types of insurance: 13,14 i. Life Insurance ii. General Insurance (Non-life Insurance) Life Insurance refers to all insurance relating to the uncertain nature of the duration of human life. 15 Alternatively, General Insurance refers to all insurance other than life insurance; in simple words it denotes insurance of actions or assets as opposed to life, in case of life insurance. 16 According to a 2012 Central Bank report, life insurance assets grew by 7% to reach $17.4 billion compared with $16.3 billion in the previous year. Additionally, the total assets of general or nonlife insurance companies grew by 5.1% to $4.7 billion. 17 These statistics therefore illustrate growth in the subsector. Presently, there are approximately 30 insurance companies which operate in Trinidad and Tobago. Limited data is available regarding their employment figures, vacancies, job titles and opportunities, qualifications required and other labour-related facets within this subsector The Swiss Financial Market Supervisory Authority. < %20December% pdf (pages 32-39) 12

13 OBJECTIVES: The broad objective of this study was to assess the current state of the labour market demands in the Financial Services Sector (Insurance Companies). The specific objectives of this assessment are as follows: To provide the NTA with the required quantitative data on the demand side of the Financial Services Sector (Insurance Companies) to enable labour market signalling, by providing figures on vacancies, job opportunities, job dislocations, etc.; To develop a baseline understanding of the labour market conditions within insurance companies; To provide labour market data to stakeholders of insurance companies. This document represents the output of this labour market study into the Financial Services Sector (Insurance Companies). 13

14 4.0 METHODOLOGY 4.1 Research Method The primary method used to obtain information for this report was the administration of a standardized questionnaire. This survey instrument was chosen, primarily because a large amount of verifiable data could be collected in a relatively short period of time and at minimal cost. 4.2 Information Gathering Human Resource Managers, General Managers, and other senior officials from various insurance companies were targeted to complete each questionnaire. Additionally, both primary and secondary methods of research were utilized to obtain information for this report Primary Research A questionnaire consisting of 27 (open and close ended) questions was administered. The major categories of data collected pertained to organisational characteristics, employment profile, current vacancies, organisational changes, job opportunities/job dislocations, training, and employee traits Secondary Research For this study, data from local and international sources were examined. These sources included, but were not limited to, the following: Central Bank of Trinidad and Tobago (CBTT) Ministry of Finance and the Economy Association of Trinidad and Tobago Insurance Companies (ATTIC) Association of British Insurers (ABI) Newspaper articles, insurance company websites 14

15 4.3 Pilot Testing A pilot testing exercise was conducted, whereby a senior human resource representative of an insurance company was asked to review, complete and give feedback on the final draft of the questionnaire. Subsequently, adjustments were made where necessary and the approved questionnaire was disseminated to the various insurance companies identified. 4.4 Census Size The census size consisted of the head offices of 29 active insurance companies listed on the Central Bank s 2014 website database Data Analysis Microsoft Access and Excel software were utilized to analyse the collected survey data. These software allowed for speedy data entry, input of formulae, calculations, as well as the generation of graphs and charts necessary to pictorially illustrate the findings

16 6.0 FINDINGS A total of 17 questionnaires administered to various insurance companies were completed and returned, resulting in a 59% response rate. Findings from the collected data are illustrated and explained in the sections following. 6.1 GEOGRAPHIC DISTRIBUTION The Findings revealed that the head offices of almost all of the insurance companies (15) captured in this survey were located in Port of Spain. Other insurance company head offices were located at Barataria (1) and San Fernando (1). 6.2 ORGANIZATIONAL CHARACTERISTICS Operational Type Respondents were asked to select the operational type which best characterized their organization. The majority of insurance companies surveyed (12) selected General Insurance Only, while 4 selected Life Insurance Only. One company selected Both General and Life Insurance. Figure 1 illustrates these findings. Figure 1: Number of Insurance Companies per Operational Type 1 Life Insurance only 4 General Insurance only 12 Both Life and General Insurance 16

17 Years in Operation Type of Business Respondents were asked to classify their organisation into their respective business types. The majority of insurance companies (11 or 65%) were identified as Private Limited Liability Companies (local), while the next largest business type selected was Private Limited Liability Company (International) (5 or 29%). Only 1 insurance company was identified as a Public Limited Liability Company (local) as its parent company traded on the stock exchange. These findings are shown in Table 1. Table 1: Number of Respondents per Organisational Type Type of Organisation Frequency Percentage Private Limited Liability Company (Local) 11 65% Private Limited Liability Company (International) 5 29% Public Limited Liability Company (Local) 1 6% Total % Years in Operation All of the 17 insurance companies surveyed were in operation for between 10 to 77 years. The vast majority of these companies (82%) were in operation for over 30 years. Figure 2 illustrates these findings. Figure 2: Years in Operation Number of Insurance Companies 17

18 Number of Insurance Companies 6.3 EMPLOYMENT PROFILE Number of Employees The 17 insurance companies surveyed registered a total of 1782 employees. An itemization of the number of employees per insurance company is detailed in Figure 3. Figure 3: Number of Employees per Insurance Company Number of Employees Sex Distribution Eleven (11) insurance companies with a total of 1058 employees sorted their workers by sex for the purposes of this survey. The results revealed that there are disparate numbers of males and females employed amongst local insurance companies. The minority (335 or 32%) of workers were male, while 723 or 68% were female, resulting in a male-to-female ratio of approximately 1:2. Table 2 shows these findings. Table 2: Sex Distribution of Insurance Company Employees Sex Frequency Percentage Males % Females % Total % 18

19 6.3.3 Full Time vs. Part Time work Eleven (11) insurance companies categorized their jobs as being either full time or part time. The Findings revealed that the vast majority (1051 or 99%) of persons employed in the insurance companies surveyed, were employed on a full time basis, while only 7 or 1% were employed on a part time basis Job Titles and Occupational Areas A cursory examination of the occupational areas amongst insurance companies in Trinidad and Tobago revealed that workers are engaged in a wide variety of job functions. Appendix 2 details these job titles as well as the qualification levels in which they were categorized Levels of Employment Eleven (11) insurance companies categorized their workers based on the 5 competency levels utilized by the NTA. The survey results revealed that the majority of persons (34%) employed by insurance companies appeared to be employed at Level 2 (Skilled s). Additionally, a significant number of workers were employed at Level 1 (Semi-Skilled s, 25%) and Level 3 (Technical/Supervisory s, 23%). Eleven percent (11%) of workers occupied jobs at Level 5 (Managerial s), while 7% belonged to Level 4 (Graduate/Professional s). Table 3: Levels of Employment amongst Insurance Companies LEVELS OF EMPLOYMENT* FREQUENCY PERCENTAGE Level 1: Semi Skilled s % Level 2: Skilled s % Level 3: Technical/Supervisory s % Level 4: Graduate/Professional s 77 7% Level 5: Managerial s % TOTAL % * Competency classifications are reflective of the level of autonomy in the workplace. 19

20 6.3.6 Work Permits Sixteen (16) or 94% of the insurance companies that participated in this survey indicated that work permits were not applied for within the twelve months prior to the survey. However, one insurance company did apply for work permits within this period. The job titles of employees for which work permits were applied, included General Manager and Chief Accountant Work-from-home job opportunities Respondents were asked whether their insurance company provided work-from-home job opportunities to employees. The vast majority (14 or 82%) did not offer work-from-home job opportunities, while 3 organisations did. These work-from-home arrangements were either formally or informally available in the job functions of information technology, underwriting, and human resource management. Also, some senior/managerial workers were reported to have worked from home on occasion Emerging job functions Participants were questioned as to whether there were any new and/or emerging job functions 19 in their insurance companies. Approximately half of the number of respondents (8 or 47%) reported that there were budding job functions, while 9 or 53% did not report having such job functions. Table 4, lists these new and emerging job functions as well as the attributed reasons for their recency. 19 New and/or emerging job functions here, refer to job functions that did not previously exist. 20

21 Table 4: New and Emerging Job Functions and Attributed Reasons for their Recency Job Function/Title Actuarial Analysis Anti-Money Laundering Business Development Manager Compliance Reporting Direct Insurance Sales Internal Audit Associate Reasons given for recency of job functions Traditionally, actuarial analysis was primarily used for Life Insurance, but this function is increasingly being seen as useful to the General Insurance industry as more in-depth statistical analysis and modeling is required. Due to increased requirements from regulatory bodies such as Central Bank and FIU, the job title of Anti-Money Laundering Associate has been created. This position was deemed necessary to help grow business operations, as this person is required to have a large network of potential clients. To assist in achieving regulatory compliance in line with increased Central Bank regulations. Instead of using agents - this was something new that one insurance company is trying. Due to increased requirements from regulatory bodies such as Central Bank and FIU 6.4 OUTSOURCING Insurance Companies that Outsourced Job Functions Respondents were asked whether job functions were outsourced at their respective insurance companies. The majority (12 or 71%) indicated that their companies engaged in outsourcing, while 5 or 29% did not report having job functions outsourced. 21

22 Job Functions Method of Outsourcing The methods of outsourcing used by insurance companies were also probed. Of the 12 insurance companies which indicated outsourcing job functions, the majority (8 or 67%) outsourced by utilizing Both Individuals and Companies, while 4 or 33% outsourced via Companies Only Commonly Outsourced Job Functions Participants were asked to identify the job functions that were commonly outsourced at their respective insurance companies. Of the 12 insurance companies which outsourced job functions, the most frequently selected job function outsourced was Office/Branch Security (8), followed by Advertising/Marketing (4) and Maintenance/Janitorial (4) services. Other outsourced job functions identified by survey respondents, are illustrated in descending order in Figure 4. Figure 4: Commonly Outsourced Job Functions OFFICE/BRANCH SECURITY GUARDS ADVERTISING/MARKETING MAINTENANCE/JANITORIAL SERVICES IT/INFORMATION SECURITY CLAIMS/LOSS ADJUSTING/MANAGEMENT ACTUARIAL ANALYSIS PAYROLL SERVICES INSURANCE AGENTS LEGAL SERVICES TAXATION SERVICES INSURANCE INVESTIGATION FINANCIAL ACCOUNTING Number of Responses 22

23 6.4.4 Reasons for Outsourcing When asked what the primary reasons for outsourcing were, the majority of respondents (8) indicated that companies and individuals were outsourced because of their specialized skills, while 4 indicated that outsourcing was done mainly because it was more cost effective to do so Outsourcing of Other Job Functions Respondents were further asked whether there were other job functions that may be outsourced in the near future, that were not presently outsourced. The majority of participants (15 or 88%) indicated that there were no other job functions likely to be outsourced. However, 2 or 12% of respondents had plans to outsource some of their advertising, marketing, and ICT/information security job functions in the foreseeable future. 6.5 CURRENT VACANCIES Respondents were asked whether vacancies existed at their respective insurance companies. A significant number of employers (14 or 82%) reported having vacant positions, while 3 or 18% did not identify any current vacancies. Figure 5 illustrates these results. Figure 5: Insurance Companies with Vacancies 18% 82% Insurance Companies with vacancies Insurance Companies without vacancies 23

24 Number of Vacancies Current Vacancies per Qualification Level A total of 66 vacancies were identified amongst the 14 insurance companies with vacant positions. The vast majority of these vacancies (18) existed at Level 2 (Skilled s), while 28 vacancies were registered at Level 3 (Technical/Supervisory s). Level 4 (Graduate/Professional s) registered 10 vacancies, while Level 1 (Semi Skilled s) and Level 5 (Managerial s) registered 5 each. Figure 6 illustrates these findings. Appendix 5 presents a detailed listing of current vacancies amongst insurance companies. Figure 6: Current Vacancies per Qualification Level Level 1 Level 2 Level 3 Level 4 Level 5 Qualification Level 6.6 JOB OPPORTUNITIES AND DISLOCATIONS EXPECTED Respondents were questioned whether there were any job opportunities or job dislocations 20 expected at their organizations within the next 12 months. A total of 6 of the 17 insurance companies surveyed, reported expecting either job opportunities or job dislocations within the 20 Job dislocation here, refers to jobs which would be removed. 24

25 next year. Five (5) insurance companies anticipated that there would be 10 job opportunities within this time period, while only 1 firm expected job dislocations to occur Job Opportunities Envisaged The 10 job opportunities anticipated within the next 12 months by the 5 insurance companies are listed in Table 5. Table 5: Job Opportunities expected within the next 12 months QUALIFICATION LEVEL* JOB TITLE QUALIFICATIONS REQUIRED NUMBER OF POSITIONS Level 3: Technical/Supervisory Level 3: Technical/Supervisory Level 4: Graduate/Professional Level 4: Graduate/Professional Level 4: Graduate/Professional Level 4: Graduate/Professional Level 4: Graduate/Professional Level 4: Graduate/Professional Underwriter 5 CXC/GCEs, computer literacy 2 Junior Surveyor Senior Underwriter Actuary Management Trainees Assistant Manager - Underwriting Compliance Officer Internal Auditor Bachelor's/Master's Degree/Advanced Certification Experience in Underwriting, 5 CXC/GCEs, computer literacy Bachelor's/Master's Degree/Advanced Certification Degree in Social Sciences, computer literacy, 3 years experience in office environment Degree/Diploma (Insurance related field), 10 years experience (Note: experience outweighs certification for this position) First degree in Accounts/Finance, understanding of regulatory and corporate compliance, Anti-money laundering knowledge ACCA Level 3, computer literacy, 3-5 years experience TOTAL 10 * Competency classifications are reflective of the level of autonomy in the workplace

26 Range of Ease/Difficulty Job Dislocations Only one insurance company expected job dislocations in the job title of Data Entry Clerk within the next 12 months Ease of Sourcing s Respondents were asked to identify how easy it was to recruit and hire suitable workers on a timely basis. The vast majority of respondents (13 or 76%) indicated that it was generally difficult to source workers, with 12 selecting Somewhat Difficult, and 1 selecting Extremely Difficult. Conversely, 4 respondents found it Somewhat Easy to source appropriate workers, as shown in Figure 7. Figure 7: Ease of Sourcing s SOMEWHAT EASY 4 SOMEWHAT DIFFICULT 12 EXTREMELY DIFFICULT Number of Responses Labour Challenges The reasons for the difficulties experienced by insurance companies in sourcing appropriate workers were varied. Firstly, respondents stated that many applicants were reportedly overqualified. However, applicants with pure insurance qualifications were hard to find. Participants 26

27 further stated that there was only a small/niche of persons qualified with core insurance qualifications e.g. CII, TTII. Many prospective candidates just appeared to have on-the-job training. Secondly, the general attitude and demeanor of young people were reported to be far from ideal. They reportedly arrived to work late and often desired to leave early. High absenteeism was also an issue. Thirdly, participants stated that people seemed to believe that Life Insurance was not an attractive career to get into, especially since the CLICO debacle. With regard to General Insurance, persons with relevant qualifications and experience were difficult to source. Salaries offered were reportedly not competitive enough Years of Work Experience required for various Employment Levels Respondents were asked to identify the number of years of work experience typically required for when hiring workers at various employment levels. The majority (15) indicated that they preferred Entry level recruits to have between 0-2 years of work experience, while Supervisory level workers were mostly preferred to have between 2-6 years of experience. Additionally, Management level workers were mostly required to have at least 4-8 years of work experience before entering their managerial roles. Figure 8 illustrates these findings. 27

28 Number of Responses Figure 8: Years of Work Experience required for various Employment Levels years 2-4 years 4-6 years 6-8 years over 8 years Years of Work Experience Entry Level Supervisory Level Management Level 6.7 ORGANISATIONAL CHANGES When asked whether organizational changes were expected within the next 12 months, the majority of respondents (13 or 76%) answered in the affirmative. Four (4) or 24% did not expect organizational changes in this period Areas of Expected Organisational Changes Of the 13 insurance companies that envisaged organizational changes within the next 12 months, the majority (11) selected the Training/Retraining of existing staff category as the most anticipated area for change. This was followed by Technology and Innovation (10), Capital or Physical Infrastructure (4), New Product Development (3), Recruitment (3) and Employee Displacement (2). Results are depicted in Figure 9. 28

29 Organisational Change Figure 9: Type of Organisational Changes Expected Training/Retraining existing staff 11 Technology and Innovation 10 Capital or Physical Infrastructure 4 New Product Development 3 Recruitment 3 Employee Displacement Number of Responses 6.8 STAFF TRAINING Organisations Offering Staff Training Almost all of the respondents (16 or 94%) indicated that training was afforded to staff members, while 1 insurance company did not facilitate such training Frequency of Staff Training Respondents were asked about the frequency of training offered to staff members. Of the 16 insurance companies which offered training opportunities to their employees, the majority (15 or 94%) indicated that training was effected on an ongoing basis, while 1 respondent reported that training was conducted every 6 months. 29

30 6.8.3 Apprenticeship, Internship and Mentorship Programmes When questioned whether an apprenticeship, internship, or a mentorship system was available, the majority of participants (9 or 53%) responded negatively, while the other 8 or 47% indicated that such programmes were available at their insurance companies Formality of Apprenticeship, Internship and Mentorship Programmes Of the 8 insurance companies that reported having either an apprenticeship, internship, or mentorship programme, the majority (5 or 63%) indicated that a formal apprenticeship-type system was in place, while 3 respondents reported that such a system was informally instituted Efficacy of Training Providers Respondents were questioned whether current training providers (TPs) were meeting their training needs. The vast majority of respondents (16 or 94%) indicated that TPs were meeting their training needs. One (1) respondent however, expressed that TPs were not meeting their needs Customer Service Qualification Respondents were asked whether customer service certification was mandatory for insurance company employees. Out of 15 responses, the majority (8 or 53%) indicated that it was not compulsory, while 7 or 47% did mandate this qualification. 7.0 EMPLOYEE TRAITS 7.1 Most required traits identified for Insurance Company Employees Participants were asked to identify the traits required most in typical employees. Based on the data, the top 5 traits required in descending order were Honesty (13), Willingness to Learn 30

31 Traits (12), Teamwork (12), Communication Skills (11), and Punctuality (10). Other required traits were also identified as depicted in Figure 10. Figure 10: Traits Most Required amongst Employees Honesty Willingness to Learn Teamwork Communication Skills Punctuality Confidentiality Problem-solving skills Flexibility Self-motivation Respectfulness Number of Responses 7.2 Traits most lacking amongst typical Employees Additionally, participants were asked to indicate the traits most lacking in current employees. The top 5 most deficient traits identified in descending order, were Punctuality (15), Selfmotivation (10), Flexibility (10), Communication Skills (8) and Problem-solving Skills (7). Other deficient traits were also identified, and captured in Figure

32 Traits Figure 11: Traits Most Lacking amongst Employees Punctuality 15 Self-motivation 10 Flexibility 10 Communication Skills 8 Problem-solving skills 7 Willingness to Learn 5 Teamwork 5 Confidentiality 5 Hardworking 4 Respectfulness Number of Responses 32

33 8.0 ANALYSIS Based on the survey results, there were new and emerging job functions in the areas of compliance reporting, anti-money laundering/counter financing of terrorism (AML/CFT) 21, actuarial analysis (for general insurance), and direct insurance sales (as opposed to using sales agents). Of significance, insurance companies reported having the new job titles of Compliance Officer and Anti-money Laundering Associate. These job titles have been attributed to the increasing regulatory requirements by the Central Bank, Foreign Account Tax Compliance Act (FATCA), Financial Intelligence Unit (FIU) and the proposed Insurance Bill. This is a classic example of how legislation can directly impact on the employment profile of an industry. Roughly 71% of insurance companies surveyed (12) were owned locally, while there was a significant foreign component (29%) in the industry. Notwithstanding this, even with increasing foreign investors in the insurance industry, there appeared to be loyalty in hiring local workers. This was evident as only one insurance company surveyed applied for work permits within the last 12 months. These work permits were applied for in senior positions, namely General Manager and Chief Accountant. Almost all of the workers (1051 or 99%) were employed on a full time basis, which demonstrates stability of employment in the sector. There were 66 recorded vacancies and 10 expected job opportunities recorded amongst insurance companies surveyed. This signifies a level of potential employment growth in this industry, and 70% of this growth is recorded in Level 2 (Skilled s) and Level 3 (Technical/Supervisory s)

34 Eighty-two percent (82%) of insurance company workers were employed in semi-skilled, skilled and supervisory/technical positions. It is therefore inferable that the vast number of jobs in this subsector may be accomplishable by persons with qualifications up to Level 3 in the National Qualification Framework. A significant number of insurance jobs are service oriented. Over half of the number of respondents (53%) indicated that customer service certification was mandatory for staff members. One human resource manager went so far to emphasize that customer service was key to achieving competitive advantage. Only 3 or 18% of insurance companies surveyed facilitated work-from-home job opportunities for employees. This implied that the structural dynamics of insurance company jobs were still entrenched in traditional arrangements. Furthermore, work-from-home jobs were available in the areas of underwriting, human resource management, and information technology. Despite the rapid penetration and relative accessibility of information technologies in society, there appeared to be more room for the expansion of work-from-home opportunities as a method of luring qualified workers into the insurance industry. This would help overcome some of the challenges in sourcing labour, as identified in the Findings. Generally, the longevity and survival rate of insurance companies is notable. This is evident in the fact that each of the insurance companies surveyed existed for between 10 to 77 years. This augers well for the insurance subsector as having sustainable employment in the financial sector. However, this also means that continuous education and training is required to help mitigate the stagnation of employees skill sets especially as it relates to veteran employees in the industry. 34

35 Based on the findings, female employees outnumbered males almost 2:1. This statistic, implied a need to balance the scales by marketing insurance careers as also being a viable option to males in society. Almost all respondents (16) indicated that training providers (TPs) were meeting their needs. In addition to utilizing external training, many insurance companies conducted their own internal training. This combination of internal and external training complemented each other as it allowed for the inculcation of both customized and mainstream insurance doctrines. The majority of insurance companies surveyed (12 or 71%) engaged in outsourcing. The most outsourced job functions were in non-core activities. These activities included Office/Branch Security, Marketing/Advertising, and Maintenance/Janitorial Services. This indicated that a significant number of insurance companies preferred to narrow their span of control into their core operations. HR managers indicated that job titles directly affected the esteem that employees had in their positions and thus their willingness to work. For example, a few insurance companies changed the job title of Messenger or Cleaner to that of Office Assistant or Office Attendant. This was said to have improved the esteem of these workers and the quality of their output. It also improved the way in which fellow staff members related to them, which led to increased job satisfaction. Honesty is an essential currency to build confidence in the insurance subsector. Even though the trait of Honesty was most required by insurance companies, it is noteworthy that it was not identified as a lacking trait amongst employees. This augers well for the business ethics of insurance. 35

36 Within the last 2 years, three regionally based insurance companies have entered the T&T market through the acquisition of existing local insurance companies. Aside from the benefits of increased foreign direct investment, this has brought technological transfer and advancement. For example, at least one of these entrants initiated the computerization of its newly acquired insurance company to improve transactional efficiency at each of its 12 branch offices. Additionally, staff members were trained in the use of ICTs. Previously, virtually all work processes were manually based. This means that a new skill set was afforded to employees, as they were now required to be computer literate. One insurance company stated that when a vacancy advertisement went out to the public around June 2014 requesting 6 underwriters (see Appendix 3), approximately 25 applications were received and about 8 proved potentially suitable. In the view of the human resource manager, this was a low response. This finding supports an earlier finding, whereby 76% of insurance companies found some level of difficulty in sourcing appropriate workers. One suggestion that was posited to overcome this, was the incorporation insurance modules in the business studies curriculum of secondary schools. This would generate early interest in insurance as a viable career option, as well as help solve the issue of members of the public having only rudimentary knowledge about and interest in the insurance industry. Respondents alluded to a lack of undergraduate programmes in core insurance. Recently, in an effort to help remedy this deficit, the Trinidad and Tobago Insurance Institute (TTII) partnered with the University of the West Indies to design the BSc. Risk and Insurance Management degree programme to directly meet the needs of the industry. 22 This is an example of how industry-tp partnerships can develop relevant programmes rather than TPs developing them in isolation

37 Such partnerships often lead to more market ready graduates. Of note, in the US alone, at least 36 colleges and universities are currently offering a bachelor s degree in this field

38 9.0 CONCLUSION Insurance enjoys a virtually ubiquitous presence in the modern world. This is primarily because it deals with life itself and its inherent risks, including health and medical, pecuniary, and natural phenomenon that can affect all humans irrespective of where they reside. An assessment of the current state of the labour market in the Financial Services Sector (Insurance Companies) has been presented and discussed in this report. Many insurance company employers indicated a preference for hiring persons who were not just qualified and certified in core insurance facets, but who possess the right attitudinal and other soft skills for the job. A total of 76 vacancies and job opportunities were identified and presented. A number of new and emerging job functions were highlighted. The sex ratio of male-to-female insurance company personnel was found to be disproportional. A plethora of job titles generated amongst insurance companies were showcased, within the report. A significant percentage of insurance companies outsourced jobs, however, these jobs were primarily in non-core activities. Economic investments outside the core oil and gas sector is fundamental to the development of T&T. 24 Favourable growth in the non-energy sector, led by services, offset a decline in the energy sector and resulted in a 1% expansion of the economy of T&T in A well-defined tertiary (services) sector is indicative of the development level of an economy. The Financial Services Sector (Insurance Companies) is a significant contributor to the human capital of the country, by 24 InvesTT 2013 The Road to ICT Readiness 25 Economic Commission for Latin America and the Caribbean (ECLAC) 2012; 38

39 providing employment, risk management and recovery mechanisms in times of loss. Therefore, insurance is a key area which warrants further support to help ensure the sustainable development of the sector. 39

40 10.0 REFERENCES Accenture Institute for High Performance (2012). The looming global analytics talent mismatch in insurance. Web: < e-looming-global-analytics-talent-mismatch.pdf> Association of British Insurers (2013). UK Insurance Key Facts. Web: < BPM Watch. Insurance: Emerging Opportunity in Outsourcing Basics (2010). Web: < Caribbean Centre for Money and Finance (2013). The CL Financial Debacle Four Years Later. Web: < Economic Commission for Latin America and the Caribbean (2012). Trinidad and Tobago. Web: < Forbes Magazine. Insurance in a digital world: The time is now EY Global Insurance Digital Survey (2013). Web: < tal_world_15_october.pdf> Trinidad Express Newspaper (2012). Howai: Govt to recoup CLICO bailout funds. Web: < Govt_to_recoup_CLICO_bailout_fund s html> Ministry of Planning and Sustainable Development (2013) Guiding T&T s Diversification Thrust. <Web: PricewaterhouseCoopers LLP (2010). Strategic Skills Needs in the Financial Services Sector: A report for the National Strategic Skills Audit for England. Web: < 40

41 Select USA.gov (2013). The Financial Services Industry in the United States. Web: < Senator the Honourable Larry Howai, Minister of Finance (2013). Financial Services Sector Creating the Future You Want. Web: < The University of the West Indies (2011). UWI to launch BSc in Insurance and Risk Management. Web accessed < The Chartered Insurance Institute (2013). Beyond 2020:Skills required for future success in UKLife, Pensions and Health Insurance a view. < Beyond_2020_The_future_of_life_pensions_and_health/$File/EY-Beyond-2020-Thefuture-of-life-pensions-and-health.pdf> 41

42 11.0 APPENDICES Appendix 1: National Qualification Framework LEVEL V IV III II I MEANING Senior Managerial s Graduate/Professional s Technical/Supervisory s Craft/Skilled s Semi-Skilled s Appendix 2: Job Titles and Occupational Areas amongst Insurance Companies by Level Level 1 (Semiskilled s) Level 2 (Skilled s) Job Titles and Occupational Areas in the ICT Sector Call Centre Courier/Driver, Kitchen Assistant, Representative, Data Processing Messenger, Car Park Attendant, Clerk, Office Assistant, Clerical Assistant, Hospitality Assistant, Actuarial Assistant, Accounting Assistant, Administrative Assistant, Administrative Clerk, Administrative Officer, Administrative Secretary, Assistant Underwriter, Business Analyst 1, Claims Service Representative, Client Administrative Representative, Credit Control Representative, Customer Service Representative 2, Document Management Assistant, Facilities Assistant, Filing Clerk, Finance Assistant, Human Resources Assistant, Human Resources Officer, Information Technology Assistant, Internal Audit Assistant, Junior Accountant, Junior Business Analyst, Junior Underwriter, Legal Assistant, Receptionist, Switchboard Operator, Telephone Operator, Trainee Underwriter. Mail Room Coordinator, Marketing Assistant, New Business Clerk (Underwriting), Operations Assistant, Records Management Assistant, Reinsurance Assistant, Risk Surveyor, Underwriting Assistant, 42