Connecticut Insurance & Financial Services Cluster Shared Action for Growth Robert Flynn Executive Director October 2006
IFS Cluster – Industry Collaboration for Economic Vitality Bank of America CIGNA Citizen’s Bank ConnectiCare Day, Berry & Howard LLP Department of Economic & Community Development Farmington Capital Partners GlobeOp The Hartford Financial Services Group Hartford Steam Boiler Inspection & Insurance Company/AIG IBM Consulting Services ING Group Insurity KPMG Lincoln Financial
MetLife MetroHartford Alliance NewAlliance Bank Northeast Utilities People’s Bank Phoenix Wealth Management PricewaterhouseCoopers Prudential Retirement Savings Bank Life Insurance St. Paul Travelers Sovereign Bank State Farm TD Banknorth UBS Wealth Management Uniprise/UnitedHealth Group Wealth Management Advisors Webster Bank XL Insurance
Sponsors Connecticut Insurance and Financial Services Cluster
2
Mission & Focus: Advancing CT’s Insurance & Finance Industry
Mission:
Goal:
Advance and protect the IFS business climate Collaboratively address threats and opportunities A dynamic and expanding IFS industry in Connecticut Global recognition as an IFS Center of Excellence
Strategy:
Business-led collaboration with education and government Enhance the competitive strength of IFS companies Develop a cadre of qualified and experienced employees Expand employment opportunities Increase workforce diversity
Mission Connecticut Insurance and Financial Services Cluster
3
IFS Cluster Operating Plan: Prioritized Focus Leading to Results
Develop our Workforce
Promote the State and Region
Attend to critical employment gaps Enhance academic programs Goal: Enhance quality, availability, diversity, and productivity of IFS workforce. Market Connecticut’s assets and value Conferences, ‘sales’ calls, requests & inquiries Goal: Attract business and foster national reputation as IFS Center of Excellence.
Build Support for Public Policy Issues
Engage industry & state leaders on IFS strategic needs Address strategic tax & regulatory issues Goal: Create enhanced business climate for IFS enterprise.
Operating Plan Connecticut Insurance and Financial Services Cluster
4
IFS Cluster Accomplishments – Highlights
Develop our Workforce
Promote the State
U.S. Department of Labor: Awarded $2.748 million in federal training funds to create “IFS University”, a collaborative approach to IFS training and education University of Connecticut: Risk Management & Insurance Studies program; Student Managed Fund; Executive Education; Hartford Downtown facility Central Connecticut State University: Risk Management & Insurance Studies program Connecticut Community College System: IT Education, Customer Service, Best Practices Seminars, Healthcare Curricula, NASD Series Certification Business Recruitment: North Carolina Mutual Life, Royal Bank of Scotland, Fidelity, ING, Colonial Supplemental, Mellon Financial, Total Bank Solutions National Conferences: Risk & Insurance Management Society, LOMA, LIMRA, American Bankers Association, Health Insurance Association of America, Securities Industry Association, CoreNet Global Real Estate
Build State Support
IFS Public Policy Platform: Focus on job growth through advocacy on issues of relevance to IFS companies and employees. Connecticut Insurance and Financial Services Cluster
5
Workforce Development Initiatives: Sample Overview
IFS Center for Educational Excellence
Coalescing and expanding statewide IFS academic programs Partnership with U.S. Department of Labor
Colleges & Universities
University of Connecticut:
University of Hartford:
IT Education, Customer Service, Best Practices Seminars, Healthcare Curricula, NASD Series Preparation
IFS Job Fairs
Accreditation Risk Management & Insurance studies expansion
Connecticut Community College System:
Institute for Entrepreneurship and Economic Development Actuarial Studies Leadership Development program
Central Connecticut State University:
Risk Management & Insurance Program School of Engineering Homeland Security Program, $15 million grant proposal
In partnership with Capital Workforce Partners and Hartford Courant
Support to Displaced Workers
In partnership with CT Dept of Labor, CT Workforce Board System Connecticut Insurance and Financial Services Cluster
6
Promotion: Build Awareness of Economic Importance of Connecticut's IFS Industry
Execute Strategic Communications
Provide IFS-specific education and awareness to students, executives, employees, policy makers
Impact Students, Employees: Craft supportive, strategic message highlighting attractiveness of IFS careers; counter bias and misinformation encountered among students Impact Executives Outside of Connecticut: Craft message of IFS strength in CT, role of IFS Cluster, world renown leaders, innovation and new product development Impact Policy Makers, State and Federal: Craft message that CT has expertise not otherwise found; that CT’s economy is based firmly on success of IFS; that with certain steps, CT can enjoy stronger economic future. Partnership with “Insure CT’s Future”, coalition of insurance companies conducting public relations and lobbying campaign
Connecticut Insurance and Financial Services Cluster
7
Case Study: Insurance Promotion through Advertising
We’re one of the state’s largest private employers – With more than 65,000 employees, and nearly 100,000 jobs in companies that do business with insurance companies. We provide an economic foundation for the entire state – The insurance sector contributes to Connecticut’s economy at a rate three times the national average, spurring growth in other industries. We support efforts to make our state an even better place to live – We contribute millions of dollars, and thousands of volunteer hours, to health, education, social service and cultural programs every year – our charitable donations make up one-quarter of all corporate giving in Connecticut. And our companies and employees make up one of the largest sources of state and local tax revenue in Connecticut. In fact, our premium taxes added up to almost half (45%) of what all other private companies paid in corporate taxes in 2004 combined. Connecticut Insurance and Financial Services Cluster
8
Public Policy Recommendations: Supporting IFS Job Growth
Development:
Create IFS Business Development Office to attract new IFS companies, retain resident firms
Tax:
Create tax incentives and credits to induce new company formation and investment
Legislative & Governmental: Curtail detrimental legislative initiatives Extend Financial Services Export Zone Present healthcare cost containment measures including medical malpractice & reduction of mandates Advocate for extension of Terrorism Risk Insurance Act Advocate for & participate in U.S. DOL grant proposal Address costs
Connecticut Insurance and Financial Services Cluster
9
Connecticut’s Insurance and Finance Industry – Critical to the State
Contributes 29.5% to Gross State Product Total employment of 143,020, in 5,550 establishments, accounting for 8% of total state employment
Insurance Finance
60,780 67,890
Real Estate Finance
14,350
Connecticut’s Insurance Leadership:
Expertise: Highest concentration of financial analysts, actuaries, and underwriters in the nation. Scale and Strength: Greatest concentration of insurance jobs among the states, with 3.9% of total employment found in this sector. Productivity: Ranks 4th in absolute size of insurance output.
Public Policy Issues
Source: CT Dept of Labor, A.M. Best. Employment figures reflect 2002 data. Growth projections relate to period 2000-2010. 10 Connecticut Insurance and Financial Services Cluster
State Comparisons
Connecticut remains a top 10 state location for insurers. State Comparison — Number of Insurers (Domestic) 2001 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
Property and Casualty
VT TX NY IL PA WI CA OH FL CT IN NJ MI MA IA NC MN AZ NE GA LA NH SC WA AL CO ME
75 75 73 68 57 57 53 53 51 41 36 35 35 28 26 25 23 14 0
203 202 200 175 152 125 109
100
200
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
402
240
300
400
500
Life/Health AZ TX NY IL LA OH IN PA CT CA WI IA FL NE GA MN MA MI AL WA SC CO NC NJ NH ME VT
44 43 37 33 31 31 30 24 23 19 18 18 18 14 13 13 12 7 7 4 3 2 0
Source: NAIC report, 2001 Insurance Department Resources Report. Twenty seven leading insurance states.
Connecticut Insurance and Financial Services Cluster
83 65
108
100
315
179
200
300
400
Selected states with large numbers of P&C and L-H insurers.
11
More at Stake – Connecticut is Heavily Vested in IFS Insurance as Percentage of Total Employment
6.00%
5.00%
1990 2004
Connecticut insurance experience: 1990 = 5.11% or 82,900 jobs 2004 = 3.98% or 65,700 jobs
4.00%
3.00%
2.00%
1.00%
0.00%
FL
IA
OH
MN
NC
NE
TX
US
CA
PA
MA
IL
NY
CT
Source: U.S. Bureau of Labor Statistics, 2004 data, Employment in insurance carriers and related activities compared against non-farm employment by state. Courtesy of NU. Connecticut Insurance and Financial Services Cluster
12
Connecticut Insurance & Financial Services Cluster Robert Flynn Executive Director Connecticut Insurance & Financial Services Cluster 860.728.2271
[email protected] October 2006
