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July/August 2018 Edition NEWSLETTER THE SURETY & FIDELITY ASSOCIATION OF AMERICA VOLUME XXXV, ISSUE 5, JULY/AUGUST 2018 The Hunt For Talent Lee Covington to Lead SFAA “In the past 22 years, Lynn products and services offered by Schubert has transformed the SFAA the association’s members,” said into the thought leader and trusted Covington. adviser for the surety and fidelity Covington currently is the Senior industry, as well as for government Vice President, Governmental Affairs agencies and legislators,” said and General Counsel for the Insured Board Chair Larry Taylor. “Now the Retirement Institute, a position industry marks the beginning of a he held since 2009, leading its new era with Lee Covington.” legislative and regulatory initiatives The SFAA works every day to at both the federal and state levels. educate lawmakers and stakeholders His focus on insurance law began about the benefits of surety and in 1993 in Little Rock, Arkansas fidelity bonding and the critical where he rose to become the deputy role it plays to protect public and commissioner of the Arkansas private interests. In 2017 alone, the Insurance Department. Covington surety industry provided over $600 honed his leadership skills as the billion in protection to consumers, Director of the Ohio Department taxpayers and businesses. The of Insurance from 1999 to 2002, organization represents more than where he served on the Executive 425 property and casualty insurance Committee of National Association companies providing public policy of Insurance Commissioners, and The Surety & Fidelity Association advocacy and education, as well then moved to positions of influence of America’s (SFAA) board of as statistical and actuarial services on the national stage in Washington directors is delighted to announce and information. SFAA members D.C. that J. Lee Covington II will become write over 97 percent of the surety “It has been my honor to serve the trade association’s President on and fidelity premium in the United the SFAA,” said President Lynn October 1, 2018. Covington will take States. Schubert, “and I am thrilled to turn the place of retiring President Lynn “It is an honor to become President over the reins to such a capable Schubert who has led the SFAA for of the SFAA and I welcome the leader who will take our vibrant more than two decades. Schubert opportunity to lead the organization organization of experienced staff will become President Emeritus as it continues to achieve its mission and active member company until her retirement on December 31, and seize new opportunities to representatives and enhance it for the 2018. expand the use of the valuable membership and the entire industry.” Statistical Fidelity Loss Cost Review Experience, Annual Statewide Subline Summaries, An actuarial review of the fidelity loss costs Five-Year Statewide Class Experience and Twelve-Year contained in the SFAA Manual of Rules, Procedures Countrywide Subline Summaries. and Classifications for Fidelity and Forgery is being The final 2017 financial statement reports, which are conducted. Upon completion, the data and supporting based on company Annual Statements, are expected to exhibits will be posted for Member access on our be released in September. They include the following: website. Countrywide Top 100 Surety and Fidelity Writers Any questions or extension requests should be directed reports, Statewide Top 50 Surety and Fidelity reports, to Alan Clark, SFAA Actuary, at (202) 778-3627 or Countrywide Aggregate Insurance Expense Exhibits [email protected] report, and the Countrywide IEE Top 100 Surety and Fidelity Writers reports. SFAA Statistical Plan Reports Statistical reports are available on the website for The preliminary 2017 statistical plan reports, which SFAA members and statistical subscribers and are are based on data collected through the Call for 2017 copyrighted. They are also available for purchase by Statistics, are scheduled to be published by early to others. Any questions about reporting fidelity and mid-August. The Call data is currently being reconciled surety statistics to SFAA or the SFAA statistical plan to company Annual Statements. The following or financial statement reports should be directed to Ed reports will be included: Annual Countrywide Class O’Donnell at (202) 778-3632 or [email protected]. 2 THE SURETY & FIDELITY ASSOCIATION OF AMERICA JULY/AUGUST 2018 The Hunt For Talent Changing Times: to successfully recruiting and Major changes are occurring in the retaining talent. The surety and fidelity industry business world. The 2018 Edelman Generation X prefers more faces a major challenge over the Trust Barometer reported that people independence in the workplace. coming years as the Baby Boomers worldwide place 52 percent trust in Development Dimensions prepare for retirement. The U.S. businesses “to do the right thing,” International (DDI) in conjunction Bureau of Labor Statistics (BLS) compared to 33 percent trust in with EY report that Gen Xers are reports that approximately 50 the U.S. government. A growing highly capable leaders and one of percent of the current U.S. workforce segment of society is looking to the most overlooked groups for will reach retirement age by 2030 companies to close the gap on key promotion. While underrecognized, – that’s an average rate of around societal issues such as diversity, they often are expected to take 10,000 retirements per day. Risk healthcare and income inequality – on heavy workloads compared to “400,000 jobs vacancies to name a few. Millennials. These societal changes have a The Center for Women and by 2020” direct impact on the workplace. Business at Bentley University & Insurance states the insurance Conventional metrics such as profit states that Millennials want high industry faces 400,000 job vacancies margins are no longer the only perks in exchange for loyalty and by 2020 and as many as 200,000 criteria used to evaluate a company. technological savvy. They are more open positions in the insurance Today, organizations face increasing socially conscious and are willing industry could go unfilled this scrutiny on their relationships with to stay with an organization for five year. With only 25 percent of the their customers and employees, as years if they align with a company’s workforce under the age of 35, a well as their communications and values. substantial talent gap exists. impact on their communities. Companies across the financial Here to Help: services sector grapple with Changing Demographics: The Surety & Fidelity Association strategies to both cultivate the Pew Research Center reports of America (SFAA) provides tools current talent, as well as recruit the that in 2017 the Baby Boomers to help members address the talent necessary skilled professionals. accounted for 41 million workers, gap. While organizations approach Deloitte reports that as insurance while Generation X made up recruiting differently from one companies strive to remain more than 53 million of the labor another and appropriately place a competitive, they are forced to force and Millennials surpassed great deal of emphasis on corporate rethink the way they engage their the other groups making up 56 human capital. Developing a robust million workers. Understanding the See Talent, next page recruiting strategy is critical for changing demographics is paramount the future of the surety and fidelity industry. JULY/AUGUST 2018 THE SURETY & FIDELITY ASSOCIATION OF AMERICA 3 Talent continued from page 3 branding and culture, SFAA focuses on the surety and Why not expand your talent pool by taking advantage fidelity story and unique industry career opportunities. of The Surety Foundation’s Industry Intern and Work is underway to expand upon and update industry Scholarship Program (SFIISP) for underrepresented recruiting materials to include mobile-friendly options, students by providing a paid internship opportunity and outreach is being expanded to include industry for an applicant during the summer of 2019? Several representation at the annual RIMS Conference in members have converted one-time SFIISP program addition to the annual Gamma Iota Sigma Conference. interns into successful young industry professionals. We 2017 Workplace Demographics Millennials 56 million Generation X 53 million Baby Boomers 41 million Both venues provide the opportunity through recruiting shared video testimonials from two of them at the SFAA materials and educational sessions to expose hundreds Annual Meeting in May. of students to the industry and invite them to explore The 2018 Surety & Fidelity Industry Compensation specific opportunities through member company Survey, discussed below, also is available as a recruiting recruiting links housed on the SFAA and The Surety and retention tool. Foundation websites. With so many vacancies on the horizon, developing One of the most effective ways to introduce talented a strong recruiting strategy is essential to the future of young people to the industry is through internships. the industry. If you are an SFAA member and have not Internships provide employers with the opportunity to already provided your recruiting link, please consider assess suitability for the work and the corporate culture doing so. Why not take advantage of the opportunity to while demonstrating the long-term career opportunities broaden your exposure? Please contact Barbara Reiff in surety and fidelity. It is a win-win for employers and ([email protected]) for more information. students alike. Now Available The 2018 Surety & Fidelity
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