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Friday PM Daily | December 8, 2023
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Insurance ‘vital and growing industry’ in Iowa
Jim Lewis, executive director of UI’s Vaughan Institute, talks strategy for recruiting talent in insurance and risk management
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Jim Lewis’ mantra for doing anything is "start with the why."
In September, the 62-year-old entrepreneur was named executive director of the Vaughan Institute of Risk Management and Insurance at the University of Iowa Tippie College of Business.
According to Lewis, he found his "why" in insurance and risk management in 2017, when he co-founded Benjamin.
Lewis and co-founder Gina Bell saw a need to help high-deductible insurance plan holders analyze insurance claims to save them money on prescription drugs through medication management and help shop for routine health care.
"I’d been helping everyone else solve their problems. And I wanted to be able to say, ‘I want to pick the problem I want to solve,’" he said. "… What’s the purpose? What’s the mission?"
Lewis took the Benjamin concept to the Global Insurance Accelerator (GIA) in downtown Des Moines to get guidance on fitting their product with the market and connect to customers and potential investors, he said.
"So we
created this network of pharmacists that would do teleconsults. We formed a strategic partnership with a business and so we started to take off," Lewis said.
Growth in the company led to a strategic partnership with the Scottsdale, Ariz.-based artificial intelligence health care firm Clever Health, which purchased Benjamin in 2021.
Lewis’ first exposure to the industry was through Relationship Marketing Inc., an agency he founded in 1993 and led as CEO until 2012. It served Fortune 100 clients in the insurance, financial services, and pharmaceutical industries with a goal to "make
their key relationships more loyal and profitable," according to Lewis’ LinkedIn profile.
Lewis also co-founded and was chief operating officer of the West Des Moines-based Splashlight from 2013-2017, which worked to reduce self-insured workers’ compensation medical plan costs through advanced claims analytics.
"I’ve worked in just about every industry you can imagine. I’ve either helped companies or had them as clients. There’s nothing that compares to insurance. It is the most complex ecosystem of people and relationships and regulation," Lewis said. "Distribution is so
complex."
Lewis replaced former Vaughan Institute Professional Director Terri Vaughan, who stepped down but continues to serve on the institute’s advisory board.
The Vaughan Institute recruited Lewis while he was alumni director at the GIA.
The job was a return for Lewis. He graduated from the Tippie College of Business in 1983 and later taught in the MBA program.
Founded in 2002, the Vaughan Institute focuses on education, research and thought leadership in risk management and insurance regionally, nationally and globally. According to the institute’s website, there are nearly 140 insurance companies located in Iowa, and less than 60 universities in the country offer a risk management and insurance program.
Lewis sees military veterans, MBA students and working adults looking to change career paths as potential talent pools for the institute to tap and help fill jobs in what is an aging insurance and risk management industry, he said.
One issue of concern, Lewis said, is the industry doesn’t "have a voice." He hopes universities and programs like the Vaughan Institute can be promoters of insurance and risk management as a "worthy industry."
According to Lewis, the institute has 130 students in its degree program and 57 seeking certificates. That exceeds its goal set last year to have 100 degree-program students in three years.
Lewis recently sat
down with the Business Record to discuss headwinds facing insurance and risk management, academia’s role in replacing the industry’s aging workforce and his strategy to lead the Vaughan Institute.
The interview has been lightly edited and condensed for clarity.
U.S. insurance markets have seen a lot of pressure in recent years from increased payouts, a challenging economy and the pandemic. How is the insurance and risk management landscape different today for Tippie College Vaughan Institute students than when you founded Benjamin in 2017?
We have such turmoil. Think about just geopolitical [challenges]. And then you think about the climate. In the insurance industry, certainly the property/casualty, climate risk is just unbelievable. Who saw that coming, especially all at the same time? [There are] profitability [challenges] with inflation and a lot of skepticism right now in big institutions, rightfully so. Insurance companies are big institutions also, and so are universities. Since 2017, it’s just dramatically different. The industry itself is very big and very strong. It has tremendous assets. It’s amazing how much of our economy is driven by those assets. They reinvest that into everything. And without that, I don’t know that we have an economy that would run. They provide all that liquidity. Thank goodness we have that. Because that was really what
drives stability, if you will, during all that craziness. There’s been some huge losses and somehow, they absorbed that. Risk is an interesting thing.
What would you say is the most complex challenge to insurance and risk management today, and what is one thing that gives you optimism for the industry’s future?
I think there’s two big ones. The first one is innovation. [Industry leaders] are looking for bold ideas that will solve some of these [profitability and climate] issues. How do we get that into our organization? And so you either have to go outside and get [solutions from] insurtechs
and the fintechs.
They struggle even when they find a really good company, how do you bring that in and implement? This is not something they’re necessarily good at. I think we can help them at the University of Iowa and we should.
It’s a struggle for most industries, but I’d say insurance, you know, being risk-averse. It’s extra hard for them.
But the second really big one that
[insurance and risk management firms] are facing right now is talent shortage. Big time. This is one that we should all care about in the state of Iowa. Because unless we can provide a steady flow of career-ready talent that can also be maybe more innovative and bring ideas from the outside [and] from inside and know how to work with that, unless we do that, we’ve got a problem for our entire state. This is one of the largest industries in our entire state — 11% of our GDP. Imagine you’re in economic development or you’re an executive of a large insurance company, or maybe even a new one that is just getting started and going to be the next era, where do you put your company? Well, you need to have great talent available. It’s not just Iowa. It’s everywhere that is having problems, but we are just unique in the state of Iowa. We really need to pay attention to this. We need to invest in our future with talent.
It’s also an
aging industry. I love doing meetings with students. They’re like my customer. I love discovery. I’ve got thousands of them available to me. I’ll buy them coffee, we sit down and these are some of the smartest [people]. It gives you great hope for our future if you sit down and talk with them. This one [student] said, "It’s such an older white-men-kind-of-an-industry." And then the other student says, "I know, it’s perfect. They’re all leaving." And they’re right.
If you were thinking about getting into an industry, it’s perfect. [The insurance industry is] needing all of this young, diverse talent. And guess what? They’re aging and leaving. So golden opportunity to rapidly advance. And that gives me hope, that although we have talent shortage, we can do
something about that. I would say that we can’t solve the problem at the University of Iowa. I don’t think that Drake (University), University of Iowa and if Iowa State keeps getting more involved and others, there are so many more positions open than we can fill. So, it really is going to take more of what I call this collaborative ecosystem where we come together, and we make it open. It’s an open invitation where we all have a stake in this and a reason that we want to try to help get this next generation plugged in.
Continue reading on BusinessRecord.com
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NEWS BRIEFS
Iowa State University offers accounting analytics master's degree program online
The Iowa State University Ivy College of Business is now offering an online Master of Accounting Analytics program that will be available full time or part time to
accounting professionals and alumni who have recently completed a bachelor’s degree. The program curriculum will provide a selection of accounting topics while placing an emphasis on expanding students’ analytical skills, according to a press release. All courses will be delivered in an online, asynchronous format that will allow students to complete their coursework from anywhere and work at their own pace. "The demand for online graduate education is on the rise, and analytics skills are in high demand in the field of accounting, which will result in an increased number of graduates that will not only further the department of accounting’s mission but also Iowa State University’s mission to create, share and apply knowledge to make Iowa and the world a better place," Brad Trinkle, chair of the department of accounting at the Ivy College of Business, said in the release.
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On The Move: Week ending Dec. 3
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Rebecca Riss (pictured)
OPN Architects
Hired as performance director
rriss@opnarchitects.com
Sarah L. Buckley
EMC Insurance
Cos.
Promoted to vice president – corporate communications and community impact
sarah.l.buckley@emcins.com
Tara Bounds
Genus Landscape Architects
Hired as project manager
tbounds@genus-la.com
Submit On the Moves: Submit announcements regarding company promotions, staff additions and changes, including photos, via our online submission form: Click here
Click here to see all of this week's promotions and job changes.
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NEWS BRIEFS
Iowa private university leaders, advocates wary of potential changes to state tuition grants
Iowa Capital Dispatch: Iowa has seen state support erode for public universities. Officials with Iowa’s private colleges fear, based on conversations with some Republican lawmakers, that their liberal arts students could be the next target for cuts. The Iowa Tuition Grant program is the primary way that state dollars help support Iowa’s independent colleges and universities. Now, however, discussions with key legislators surrounding the program and changes that could be made in the future have caused concerns for leaders in the state’s private university sector.
Big Grove Brewery announces opening date for new Cedar Rapids location
Cedar Rapids Gazette: Big Grove Brewery is getting even bigger. After much anticipation, one of Iowa’s largest breweries is opening in Iowa’s second-largest city as it positions itself for more growth on the heels of a statewide craft brewing renaissance. The brewery announced its Cedar Rapids location at 170 First St. S.W. will open on Thursday. The taproom will be Big Grove’s fourth, after Solon, Iowa City and Des Moines — making it one of the only breweries in Iowa with such a statewide presence.
Honeywell to buy Carrier unit for $5 billion
Wall Street Journal: Honeywell International has struck a roughly $5 billion deal to buy Carrier Global’s security business, as the
industrial giant embarks on a spending spree to bolster its portfolio. The security business makes products including electronic locks for big companies, hotels and hospital chains. The acquisition is meant to help bulk up Honeywell’s Building Automation segment, whose customers include hospitals, airports, data centers and the like.
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ONE GOOD READ
Fear of cheap Chinese EVs spurs automaker dash for affordable carsReuters: The rise of inexpensive Chinese electric vehicles has upped the pressure on legacy automakers who have turned to suppliers, from battery materials makers to chipmakers, to squeeze out costs and develop affordable EVs quicker than previously planned. "Automakers are really now only turning to affordable vehicles, knowing they've got to or they will lose out to Chinese manufacturers," said Andy Palmer,
chairman of UK startup Brill Power, which has developed hardware and software to boost EV battery management system performance. Palmer, formerly Aston Martin's CEO, said Brill Power's products could boost EV range by 60% and enable smaller batteries. The battery is an EV's most costly component. Fears of slowing demand because EVs are expensive has increased urgency to reduce costs. That urgency can be seen everywhere. Renault said last month it plans 40% cost reductions for its EVs to reach price parity with fossil-fuel models. Stellantis is building a European plant with China's CATL to make cheaper LFP batteries and recently unveiled the Citroen electric e-C3 SUV, which starts at 23,300 euros ($24,540). Volkswagen and Tesla are developing 25,000-euro EVs.
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KCCI TOP STORIES
Des Moines Public Schools hosting meetings, online survey for parents to give feedback
Des Moines Public Schools is asking parents and the public to provide feedback to help the district set future goals. There are multiple ways to provide your thoughts. First, several meetings will be held. If you can't attend in person, an online survey will also be available. The district says it will review all the input to create the best plan for the future. Read more
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Tonight:
Mostly cloudy skies with rain showers mainly over east and southeast Iowa after sunset through sunrise. Low 34. Winds northwest at 5 to 10 mph.
Saturday:
Partly cloudy in the morning, then becoming overcast and windy with a few flurries in the afternoon, mainly in Central and Northern Iowa. High 39. Winds west-northwest at 20 to 23 mph. Gusts up to 25 mph.
Sunday:
Mostly sunny. High 38. Winds west-northwest at 10 to 15 mph.
Get the latest KCCI weather.
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BUSINESS RECORD IOWA INDEXThe Iowa Index is an unweighted average of all Iowa-based public companies. Below is a live look at those Iowa companies, plus additional companies with large operations in Iowa.
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