in line with the aspirations of the entire insurance industry to recruit future generations practitioners in the sector, succession plans have become imperative for insurance and reinsurance companies, says Mr Adeyemo Adejumo, Managing Director, Continental Reinsurance Plc.
Adejumo, in a recent interview with Vanguard, explained that succession planning is a process whereby an organisation ensures that employees are recruited and developed to fill each key role within the company and, in so doing, companies recruit superior employees, develop their knowledge, skills, and abilities, and prepare them for advancement or promotion into more challenging roles.
For growth consolidation and continuity, Adejumo maintained that it is important for insurance and reinsurance companies to have a good succession plan.
â€œThere is a need to invest heavily in human capital in all areas of our business. We need to develop technical competence as well as administrative skills to sustain our industry. Succession plan is a must for all companies.â€
Succession plan, Continental Re boss said, is not restricted to big companies but includes the medium and small size companies which should also begin to groom and prepare a successor.
â€œThis is true for small firms as well as large ones. Itâ€™s not just succession to the top, itâ€™s getting the right person in place for every job.
Some of tomorrowâ€™s key jobs may not even exist now. If a firm plans to double in size in five years, they will need more talented managers and the managers cannot be picked from the market place.â€
Insurance and reinsurance companies should begin to identify and monitor various talent pools within their organisation in order to match the future needs of their companies. Not having the right talent in place is often a growth_limiting factor in achieving business potential.
He asserted â€œA succession plan must also ensure that the marketplace perception of a company during the transition period remains positive.
It must address the key audiences of employees and clients and ensure they remain loyal. It must calm shareholders and ensure they remain on board as confidence in the companyâ€™s prospects is paramount.â€
Leading organisations, Adejumo reiterated, are already building systems that provide talented, high performers opportunities to grow.
â€œAny good company tends to identify and understand the developmental needs of its employees whilst it ensures that all key employees not only understand their career paths but the roles they are being developed to fill.â€
He stated that every insurance and reinsurance company has one or two employees that, when properly spruced, can take the company to a height that the predecessor could not achieve. But this can happen only when an organisation gives such employees the opportunities to prove themselves.
He affirmed that succession plans help companies develop talent for future roles and map out development paths, years in advance, before the talent gap occurs.