The Number of People with Disabilities in the Workforce Is Growing. But Will They Find Careers in Insurance?

In an enormous industry that touches nearly every facet of daily life, insurance and risk management experts say, there’s ample space for people of diverse abilities to thrive.

By: Raquel Moreno | November 18, 2023

The term “disability” encompasses a vast spectrum. Overall, more people who identify as “disabled” are actively engaged in the workforce today than in recent years.

According to the Bureau of Labor and Statistics, in 2022, 21% of persons with a disability were employed, up from 19.1% in 2021. Whether this increase is directly tied to greater availability of hybrid work options or a function of more people becoming disabled, some experts expect to see the trend continue.

“Within the next 10 years, I think, the number of people with disabilities working is going to increase quite a bit,” said Gilmara Vila Nova-Mitchell, director of diversity, equity and inclusion at IMT Insurance.

But is the risk management and insurance industry ready to make space for more people with disabilities?

Finding the Right Fit

In risk management, it’s important to consider the work that has to be done and how to then accommodate people’s specific needs, said Grant Reichert, director of risk management at real estate investment trust Camden.

Site safety, an integral facet of risk management in real estate development, is one function that he said could present challenges.

Visiting real estate developments can involve fatiguing travel, not to mention that, in the early stages, many sites are not yet equipped with elevators and other accessibility features, Reichert said.

But such physicality is not always required, Reichert acknowledged. “I could be in my office for the next three months and be just fine. So depending on what you’re doing within corporate risk management, there’s a way forward for you,” he said.

Given that much risk management comes down to problem-solving, Vila Nova-Mitchell said, disabled people have a lot to offer the industry.

“People with disabilities can bring a very unique perspective and value to the field of risk management,” she said. “They are very skilled at problem-solving; they have to problem-solve [constantly] because our society is not designed for them.”

Reichert agreed and views keen problem-solving as a necessary skill for risk identification: “Essentially, you’re using your imagination to figure out all the potential risks the company faces. So having a different perspective definitely [can] help identify and treat uncommon risks.”

The Ability to Lead

Vila Nova-Mitchell anticipates that more risk and insurance-related organizations will welcome the perspectives of people with disabilities in the years ahead. Much of the advocacy needed to open more doors could come from top leaders who are disabled.

Francis Hyatt, chief sustainability officer, Liberty Mutual Insurance

Francis Hyatt, chief sustainability officer, Liberty Mutual Insurance, is one of the industry leaders currently driving such change.

“When I became vision impaired in 2011, I didn’t want to be seen as having a diminished capacity,” he said. “My manager created a safe space for me to talk about my needs and determine the accommodation that would ensure I could continue to be successful.”

For more than 30 years prior to becoming CSO in 2019, Hyatt helped shape a wide range of leadership and workforce strategies at Liberty Mutual — most recently leading the enterprise talent practices group.

“This breadth of experience provided a unique view into the needs of our employees, the challenges they face every day and the opportunities we have to best support them,” he said.

In 2021, Liberty also launched a multiyear accessibility action plan focused on evolving policies, benefits, infrastructure and programing.

“Part of the plan included the launch of a seventh employee resource group (ERG), Able@Liberty + Allies, dedicated to fostering awareness, understanding and support for people with disabilities, caregivers and family members,” Hyatt shared.

As the co-executive sponsor of this ERG, Hyatt said, “I’ve always felt supported in my disability journey and want to help others across the company feel the same.”

There’s a Place for You Here

Vila Nova-Mitchell recommends that insurance leadership make deliberate efforts to recruit people with disabilities.

One place a growing number of organizations are seeking out talent from an often-overlooked community is Gallaudet University, a global leader in postsecondary education for deaf and hard of hearing people.

In 2015, a risk management and insurance (RMI) program launched at Gallaudet with funding from the Maguire Foundation.

Mirroring the experiences of other RMI program directors, James Bruner, executive director of Gallaudet University’s risk management and insurance program, has worked diligently to build a pipeline from Gallaudet to the industry.

“I’m proud of all the doors that have been open for a lot of these students,” Bruner said, reflecting on the approximately 50 deaf and hard of hearing people who have graduated from Gallaudet’s RMI program.

“And keep in mind, when they came to Gallaudet, the last thing they thought about was majoring in insurance,” he said.

With unwavering support from both the university leadership and Maguire, Bruner has been able to help students see that “there’s a place for you in the insurance industry,” he said. “It’s an enormous business and the tentacles go everywhere.”

Interning Gallaudet students have excelled in a variety of workplaces, from the DC Department of Insurance, Securities & Banking to major brokerage firms. From those initial opportunities, Bruner’s former students have gone on to build careers as analysts, brokers and underwriters.

And now that a recent alumnus has passed his first actuary exam, Bruner sees actuarial careers on the horizon for future graduates as well.

Though the playing field is not equal for his students, Bruner said, many of Gallaudet’s internship program partners patiently work together with his team to resolve any accessibility challenges that arise despite diligent planning and preparation.

But thanks to technological advancements, Bruner said, facilitating communication (which tends to be the most significant hurdle his students must overcome among hearing colleagues) is much easier than it’s ever been.

Visibility Matters

Between his three decades of insurance industry experience and the expertise offered by Gallaudet’s three adjunct RMI professors, Bruner takes great pride in the quality of the education and industry preparation the students receive.

“I was able to hire three amazing adjunct professors that have been in the field for years,” he said, which has “offered students an opportunity to hear directly from the professors that understand the business. It’s not just all theory … It’s real-world, real-life [experience].”

The most valuable learning moments, however, are when former students return to give presentations to current students.

“Think about how powerful that is, having one of your own give that presentation and say, ‘You can do it too,’ ” he noted. “It’s one thing for me to tell them; it’s a whole different ball game for former students to tell them that too.” &

Raquel Moreno is a staff writer with Risk & Insurance. She can be reached at [email protected].

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.