How I Ditched the Imposter Syndrome to Become an Insurance CEO

By: Jeanette Ward | April 15, 2024

Jeanette Ward is president and CEO of Texas Mutual Insurance Company, a board member of the Insurance Industry Charitable Foundation (IICF), and will be attending the IICF Regional Forum in Dallas this June.

Last November marked a milestone in my career: 30 years working in the insurance industry. Hitting that milestone inspires me to reflect on the progress and challenges of our industry, as well as my own career, as we consider what the future of work might hold.

Based on my personal experience spending three decades in this industry, I believe the future of work in insurance must be rooted in listening and trust between employee and employer every bit as much as it should be among the agent, policyholder and insurer.

My journey has been nontraditional, to say the least. More than 30 years ago, I was a young single mother who needed a job after college to support my daughter while paying for my student loans and bills. I took the first position available, a receptionist job with Texas Mutual Insurance Company. Just last year, I assumed the role of president and CEO, along with celebrating my 30th anniversary with the company.

I found a home in insurance because our industry is stable, which was important for me as a young mother, yet it is always evolving. As a natural problem-solver, I’ve found career satisfaction as the industry consistently provides new challenges to address.

Reflecting on the talent landscape over these past three decades, I see evidence of positive change and progress for attracting new talent to the industry. For example, 30 years ago, only a handful of insurance and risk management programs existed at universities nationwide. Today, a number of universities have introduced insurance and risk management programs, not only raising awareness among students about insurance careers but also providing a pathway to a career in insurance. And while many in our industry 30 years ago may have kept our heads down, crunching numbers and writing claims checks, today’s industry leadership has made it a priority to spread the word about just how rewarding a career in insurance can be and to remove barriers to welcome new types of talent to our industry.

The future of work carries much potential, as we are a more welcoming industry than ever before. But that bright future relies heavily on how we interact with our team members. We are an industry rooted in compassion and exist to help people in their times of need. We must also share that empathetic side with our employees from all backgrounds and life experiences. We need to listen, trust them and earn their trust in order to build a culture of belonging and best position our industry for the future, and we need to allow them to bring their full selves — along with their perspectives and experience — to the job.

A Perception Problem

We all know about the talent dilemma we face. Our industry is in the midst of a swath of retirements, and we need to continue to find new sources of talent to fill the gap. At the same time, we need to cultivate a positive atmosphere at “the office,” whether that is the physical office or at home, so individuals feel welcome and want to be a part of our industry for years to come.

We are making good progress on broadening our approach to bringing in a wide variety of talent to our industry. In recent years, our industry began focusing on recruiting nontraditional talent to expand our recruiting pool. For example, here at Texas Mutual, we implemented an apprenticeship program in partnership with the Greater Houston Apprenticeship Network. This program targets individuals who may not be able to easily access higher education in order to start — or make a change in — their career. We offer them the opportunity to work for us part-time, learning the claim-handling role while attending college part-time. After two years, they have an associate degree, a wealth of industry experience and the credentials necessary for a full-time claim adjusting role.

A Recipe for Success

I started in insurance without industry experience. I also had to balance work with raising my daughter as a single mom, which made me feel as if I was an outsider in the workplace. The primary thing that helped me find a sense of belonging and move past my imposter syndrome as I moved up the ladder was coaching and mentorship.

I had a hard time developing confidence and believing in my worth. At Texas Mutual, I had access to mentors and, later, an executive coach who helped change my outlook by providing several strategies for confidence-building. With the coach’s help, I was able to recognize the value in what I do — and how I do it — that is specific to my unique experience and approach. This confidence changed my outlook and pushed aside my imposter syndrome, and is one of the main reasons why I am CEO of Texas Mutual today.

We have seen employee expectations shift significantly since the pandemic, and it is important that we work to meet our employees where they want to be met and provide them with the resources they need to succeed in their careers. We want them to have a sense of belonging. These three best practices can help us get there:

Provide coaching and mentorship: For any coaching to be effective, self-awareness is key. Companies can utilize coaches and self-evaluation tools that, coupled with feedback gathered from peers, enables employees to feel comfortable with self-analysis. Similarly, mentors and coaches can provide consistent and strong feedback. We want employees to look in the mirror and develop strategies for improving self-confidence, inspired by our support.
Listen: We cannot afford to make assumptions about how team members are feeling and thinking. We need to be asking questions — without prying into personal matters — that can help us keep up with changing expectations and foster a sense of belonging. For example, we need to talk to them to learn what team members like about our companies and what can we do better. Since the pandemic, we have heard more employees requesting flexibility. I think back to when I started as a single mother. Employers offered very limited flexibility. If I had to work and my daughter had a doctor’s appointment, it was a challenge. That is all changing. With that increased flexibility comes increased engagement, and we are less likely to lose valued employees because of the circumstances of life.
Empower employees: We want to empower our people to get the work done in the environment that works best for them. This promotes a healthier workplace with better employee engagement, where our team members feel both trusted and appreciated. At Texas Mutual, we have recognized that we can be more successful when we lead with empowerment and provide each employee with the autonomy to get the job done the best way they know how. Rather than telling staff members exactly what to do, we share the expected outcomes and ask them to find the best way to achieve those outcomes. This creates a sense of ownership of the work for employees and increases their career satisfaction.

Moving Forward

As a five-foot-three-inch-tall woman with curly hair, I do not bear the physical appearance of a traditional CEO. I do not necessarily have what people tend to describe as traditional “executive presence.” That’s why it is important that we work to break down those dated perceptions. Women and other new faces in leadership can get this process started by taking action. That’s why I speak and share my career story at as many events or opportunities as I can — to show that you can be true to who you are and be successful, and to help create a new perception of what an executive leader looks like. That’s also why I serve as a mentor to new talent and provide as many people as I can with the tools and resources they need to break through barriers and thrive in their careers.

The Insurance Industry Charitable Foundation (IICF), coincidentally also marking 30 years, has led the way on this front. In fact, I attribute much of what I have learned about building a healthy work culture to their events and the incredible role models and peers I met along the way. These events, like the upcoming IICF Regional Forums, provide a place for members of our industry to convene and focus on networking and professional development, and everyone is welcome to attend.

Looking back on 30 years, we should be proud of the progress we have made as an industry. From my early days as a twentysomething receptionist to my time now in the C-suite, I have witnessed an industry dedicated to helping others. Let’s create a future of work that imparts that philosophy on our employees as well as our policyholders. A focus on listening and trust will fuel a greater sense of belonging to help us create a more successful and sustainable insurance industry. &

How a Carrier Partner Can Help Navigate a Challenging Management and Professional Liability Market

A combination of a choppy economy with increased claims frequency and severity could lead to rate increases in the Management & Professional Liability market.

Rates in the management & professional liability (M&PL) markets were on the rise from 2020 to early 2023 and are now falling rapidly.

M&PL divisions manage a number of different insurance products including management liability (D&O), professional liability (E&O), employment practices liability (EPL), fiduciary liability policies, cyber, etc. In 2023 and into 2024, a big influence on the marketplace has been the extremely aggressive and softening public company D&O market.

Though these rates have been softening for management liability, that may change over the next few years as companies continue to adjust their business models motivated by economic uncertainty. Layoffs were up nearly 200% last year, Forbes reported, even as other recession indicators, like the inflation rate, improved. A recession could lead to an increased claim activity and force carriers to raise rates.

“Whenever there is a meaningful downturn in the economy, we tend to see claim frequency pop up,” said George Schalick, Jr., senior vice president of the Management and Professional Liability Division at Philadelphia Insurance Companies (PHLY).

With continued fiscal uncertainty, businesses potentially already burdened with pandemic-related claims should seek a carrier with a long history in M&PL products. They will provide much-needed risk management guidance and be better positioned to support their insureds during market fluctuations.

Why Insureds Might See an Uptick in M&PL Claims

George Schalick, Jr., Senior Vice President of the Management and Professional Liability Division, Philadelphia Insurance Companies

The current soft market might come as a bit of a surprise as it does not track with previous underwriting cycles and economic conditions. Afterall, many privately held and non-profit organizations struggled during the early days of the pandemic with shutdowns and rapidly declining revenues. But the Government assistance programs, like the Paycheck Protection Program loans, helped keep many afloat during the tough times.

“During COVID many organizations stopped doing business until they were able to sort out all of the health and safety challenges,” Schalick said. “They were forced to lock down, but then all the government assistance programs allowed them to keep people employed. The increased volume of claims we anticipated we would see coming from the lockdowns and restrictions that were imposed upon businesses in the U.S. didn’t manifest at first.”

“Just because there wasn’t an onslaught of reported claims at the beginning of the pandemic, doesn’t mean the circumstances that would give rise to a claim being reported didn’t occur. Courts and the judicial system were closed or slowed and now that they are back open, we’re starting to see the circumstances that occurred during the COVID lockdowns becoming claims today,” Schalick said. “Litigation is progressing.”

Added to the delayed pandemic litigation is a concern over newer claims that might be filed as the country inches toward an economic downturn. Though a recession was avoided in 2023, experts think a soft dip could occur in 2024, with 76% of economists saying there’s a 50% or less chance of an economic downturn this year — that almost always results in more management liability claims.

“During the Great Recession in 2008, we saw an almost immediate spike in claims because of the economic conditions and the pressure it placed on organizations. They were making personnel changes with significant belt tightening almost immediately.” Schalick said.

What’s in Store for M&PL Policy Rates in 2024?

Despite an uptick in claims and increased economic uncertainty, management liability rates haven’t increased, resulting in market-wide pricing levels that may not meet the increased pressure of rising settlements and jury verdicts.

“Rates are going the other direction and settlement values are not falling,” Schalick said.

The mismatch between rates, claim frequency and severity is, in part, because carriers experiencing the dramatic soft market in the public D&O market are seeking premium gain in the private and non-profit market.

“In the public company market, the rates have been decreasing significantly. The rates were increasing in the private, not-for-profit market, and rightfully so, but there’s a desire to supplement overall mid-size D&O for carriers who also write private not-for-profit, and they see that as an opportunity to aggregate premium,” Schalick said. “So the always competitive landscape in the private, not-for-profit market has dramatically increased in the last 18 to 24 months.”

Still, companies of all sizes and types should be concerned about management liability rates in the future. Legal system abuse is resulting in increases in both the amount of litigation and the size of verdicts plaintiffs are receiving.

Certain areas of the country are particularly vulnerable to this type of legal system abuse. As a result, insureds in these localities are likely to be vulnerable to rate increases.

“The environment is so positive for the plaintiff that forces premium increases so carriers are able to stay in that market long term,” Schalick said.

Why a Tenured Carrier Partner Can Help Insureds Navigate An Uncertain Market

It’s clear that insureds are facing an uncertain M&PL market over the next few years. Fortunately, carriers with a long history in the M&PL space will be there to offer stability.

Philadelphia Insurance Companies has been supporting this market for 35 years. PHLY is committed to offering long-term rate stability, even as economic and claims trends start to push premiums upwards. They have an appetite for all sorts of companies, large and small, for-profit and nonprofit alike.

“We’ve been at this game for a long time and are one of the most tenured underwriters in this space,” Schalick said. “We like to stay very consistent.”

PHLY has worked with both for-profit and non-profit on management liability policies. With dedicated M&PL teams throughout the company’s 13 regions, PHLY provides the support agents and brokers are looking for on behalf of their clients. The teams know their regions well and can respond to local trends. They’re also dedicated to making the renewal process as easy as possible for their partners and policyholders.

“We have real confidence in our results, so we focus a lot on making the renewal experience as painless as possible for all agents and insureds,” Schalick said.

The company is also investing in tools to help insureds avoid losses. Earlier this year, they launched a new online risk management platform, PHLYGateway, which offers resources for insureds on how to create an employee handbook and trainings on issues such as recognizing workplace sexual harassment and discrimination.

If insureds have questions, they can consult a Best Practices Help Line, provided via the platform. That way, they can get on the spot risk management guidance to help them prevent claims.

To learn more, visit: https://www.phly.com/mplDivision/managementLiability/default.aspx.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Philadelphia Insurance Companies. The editorial staff of Risk & Insurance had no role in its preparation.