Transcript Document

A Strong Economy and Insurance Industry
Starts with Young Children
Adam McDonough
President & CEO, Lockton Insurance Brokers of San Francisco
Chairman, Insurance Industry Charitable Foundation, Western Division
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Insurance Industry Charitable Foundation
Mission:
To help communities and enrich
lives by combining the collective
strengths of the industry to provide
grants, volunteer service and
leadership.
Focus Areas:
• Child Abuse Prevention, Education and Awareness
• Disaster Preparedness & Response
• Health and Human Services
• Specialized Education & Literacy programs
July 6, 2015
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Today’s Topic.
How do we enhance our industry’s
reputation, build and extend our legislative
allies and look out for our customers and
the health of our industry at the same
time?
July 6, 2015
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When our industry talks to policy makers we…
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Fight to protect our interests
Work to support the sustainability of
our industry
Have to play both offense and
defense
Depend on strong allies
Try to make as few enemies as
possible
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How do you create more friends and build
allies that can strengthen the effectiveness
of your legislative efforts?
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By finding issues that leverage our industry’s strengths
and that have broad appeal and clear benefits.
As an Industry we…
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use science and data to make smart business
decisions
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must understand economics and investment
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have to understand risk analysis and risk
mitigation
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depend on strong communities for customers
and growth
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look out for people’s safety and well-being
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The skills of our workforce directly impacts The
competitiveness of our economy and country.
The Society for Human Resource
Management says “America’s workforce
is not ready for today’s increasingly
competitive global economy.” We have a
looming talent shortage.
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We know that there are workforce changes coming.
Smart insurance companies are planning for this now.
By 2018, all but the youngest baby
boomers will be of retirement age. In
short, about 76 million boomers will soon
retire and only about 51 million people are
in line to replace them – a 25 million
worker gap.
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We are not taking full advantage of our workforce’s
potential.
Of all 39 million young adults in the U.S.
aged 17 to 24, the Pentagon reports that
75 percent (29 million) cannot qualify to
join the U.S. military.
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We know our industry needs highly skilled workers, so
do other industries. And that need is growing.
According to a recent Georgetown
University study, 63 percent of workers will
need to have at least some post-secondary
education in order to qualify for U.S. jobs
by 2018. And only 19 states are on track to
meet that benchmark.
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America’s skill advantage is falling which weakens
our industry’s ability to attract the workers we’ll need.
US is ranked 6th in residents
between 25 and 64 years old with
associates degrees or better.
When you look at people 55-64 we
are in 4th place.
When you look at people aged 2534 we rank 12th.
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So what
do we do?
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A top policy recommendation of many economists and
organizations is to invest in Pre-K and other proven early
childhood policies.
According to the College Board, we must
“Provide a program of voluntary preschool
education, universally available
to children from low-income families such
that all children at or below 200 percent of
the official poverty line have a chance to
enter school ready to learn.”
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A diverse group of organizations that represent a lot of
different interest groups support this approach
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Federal Reserve Economists
The National Association of Manufacturers
The US Chamber of Commerce
Chamber’s of Commerce across the Country
Business Roundtable’s across the Country
Nobel Prize Winning Economists
Teacher’s Organizations
Education Reform Groups
Political leaders from both major parties
And many more…
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Why the interest?
Science
Economics
Research
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Neuroscience shows us that the earliest years are
significant brain development years.
A child’s brain reaches
90% of its adult weight by
3 years old
…and is developing 700
neural synapses every
second
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Economics shows that early investments produce up
to a 10:1 Return on Investment.
…yet spending on early
years is half or less of what
we spend in later years of
school.
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Abecedarian (0-5 early care and parenting
support)
Quality Pre-K improves school achievement…which
produce more qualified workers for our industry.
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Studies show that Pre-K leads to higher incomes
which produces more customers for our industry.
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Research shows that Pre-K helps reduce crime
which mitigates risk for society.
The intensive Perry Preschool program demonstrated crime
savings of over $11 per public dollar spent on pre-k.
Chicago Child-Parent
Center model (similar to
many state pre-k
programs) finds returns of
$2-$5 per dollar invested
in later crime savings.
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Studies show that smart early interventions can
lower child abuse.
Evidence-based home
visiting programs have
demonstrated fiscal returns
of up to $5.70 per dollar
invested, produce a 48
percent reduction in child
abuse, and at age 15,
children have shown a 59
percent reduction in
arrests.
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Data demonstrates that smart preventive measures
lower health costs.
Protecting children’s
teeth with water
fluoridation can return
$38 for every dollar
invested and sealant
programs reduce
health costs and
prevent 60% of
cavities.
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Concerned that these are “touchy-feely” issues; not a big
or important part of the economy? Think Again!
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The prenatal to age-18 portion of the Youth Human
Capital sector is about 10% percent of GDP
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The prenatal to age-5 portion is nearly 3% of GDP
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Over half the U.S. population is involved in raising
and educating children and providing the goods
and services they need – 195 million Americans
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The most important skills developed in high quality
early childhood programs directly impact our
workforce.
Its the self-management skills (persistence,
patience, teamwork, motivation, self-control)
that maximizes a person’s lifetime
achievement.
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So how do we enhance our industry’s
reputation, build and extend our legislative
allies and look out for our customers and
the health of our industry at the same
time?
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We make quality early education policies an industry
priority.
1. We know the economics of these program
pay-off for society
2. We know the risk mitigation benefits of
these programs pay-off (reduced crime and
health costs)
3. We know risk mitigation policies should be
Insurance Industry priorities
4. And we know that we can build new allies in
the legislatures by working with them on
these issues.
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Our Industry can make a difference -- nationally, there
is a wide variation in 4-Year-Olds in State Preschool
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Join The Partnership for America’s Economic Success
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A Coalition: Business leaders
protecting economic competitiveness
through smart early childhood
investments.
Taking Action: Research (Over 25
reports and briefs), conferences (state
and national summits, and exclusive
business events), trainings, and
technical assistance.
Getting Results: Successfully saving
and expanding smart early childhood
investments from Oregon to Alabama
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What can we do? I’m glad you asked…
1. Get Involved -- Sign-up for the
Partnership for America’s Success
at www.partnershipforsuccess.org
2. Join the Insurance Industry
Charitable Foundation
http://www.iicf.org/
3. Encourage your members to get
involved in early childhood issues:
I. Join state task
forces/commissions
II. Host events
III. Support smart policies
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National Organizations Are Working To Improve Early
Education
The George
Gund
Foundation
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For More Information:
Sara Watson – Director
Rob Krupicka – Business Partnerships*
Elaine Weiss – Research
Jeff Woolston – Administrative Support
*[email protected] – 202-540-6373
Pew Center On The States
901 E Street NW, 10th Floor
Washington, DC 20004
(202) 552-2000
[email protected]
www.PartnershipforSuccess.org
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