Can I Sign Nebraska Banking PPT

Industry sign banking nebraska word secure

good afternoon and welcome to the Bureau business webinar on the 2015 economic impact of the Nebraska insurance industry we're pleased to present this powerpoint and webinar to you today also want to thank the Nebraska Insurance Federation which was the sponsor of this economic research project which we're going to present to you today the webinar is presented by the Bureau business research which is part of the department of economics within the college of business administration here at the University of nebraska-lincoln my name is Eric Thompson I'm an associate professor of economics I'm also the director of the Bureau business research before I get started with the PowerPoint and rest of the webinar I want to point out a few other features of the webinar that we have here for you today first of all in the center right part of your screen you can see a list of attendees so the other other folks attending the webinar and then just below that there's a chat window which you can use to while the webinars going on to chat with some of the other attendees of the webinar if you have a question ask or comment to make and so we encourage you to do that feel free to do that during the webinar in terms of questions of me we also have a question and answer window in the lower center part of your screen and at any time during the webinar a question occurs to you feel free to type that in and I'll go ahead at the end of the presentation and answer any of your questions obviously if you prefer to wait till the end of the webinar you can type in the question at that point and then we'll answer your question that that's when we'll be answering the questions at after the PowerPoint presentation another thing we like to do is to have some poll questions for the webinar participants at a few spots during the presentation you can see there that the the first poll question is already listed see we've already had a few votes so what is the highest ranked state in terms of the concentration of insurance employment and by concentration we mean the highest share of the state's employment is in the insurance industry in any event will will have that question raised a little bit later as well but once we have everyone's vote in and we'll go ahead and reveal the answer to the question so with all those points made I'm going to go ahead and get started with the webinar in particular our PowerPoint presentation on the 2015 economic impact of the Nebraska insurance industry here's a brief outline of the PowerPoint presentation so we're going to discuss why what makes the insurance industry a key component of the Nebraska economy and I'll just say right now that for years the Bureau business research has argued there's sort of three key sectors to the Nebraska economy one of course is the agricultural production complex in our state but in addition that there's also the transportation and logistics industry if you think about our large trucking and rail industries and then the third key component of rask economy of course is our insurance carriers industry which has been a key component of our economy of course for a very long time so we'll talk about some additional evidence and facts about that then we'll move to the economic impact of the Nebraska insurance industry so how is it impacting our economy welcome back to the webinar on the Nebraska insurance industry and its economic impact sorry for those technical difficulties as I saying earlier the outline of our presentation is as follows will be talking about what makes the insurance industry a key component of brassica economy what its economic impact is for Nebraska obviously if you have an economic impact there's tax revenues generated with along with that economic impact and it will also look at the contribution of the insurance industry to Brain Gain in our state so let me go ahead and start talking about the first topic what what makes the insurance industry a key component of the Nebraska economy well the first thing to keep in mind is the insurance industry is very much a high wage industry so if you look at insurance the insurance carriers component of the industry and that's a very big part of the insurance industry here in Nebraska the average wages in 2015 last year for which we have full data available was 71 thousand dollars now that might sound like a lot and indeed it is if you look at the average private sector wage in Nebraska it's something like 42,000 to 43 thousand dollars so 71,000 is substantially higher more than fifty percent higher than the average so this is an industry that generates high wage jobs in Nebraska and it's also a growing industry so here I've got a table a lot of numbers here but basically we've listed the average wages and the growth in wages in some of the key industries in the Nebraska economy of course we have insurance carriers and related activities take a the insurance industry but we also have education and health services we have professional and business services we have information which is a lot of technology and broadcasting type businesses we have manufacturing first thing you'll note is there's a number of high wage industries here but insurance carriers and related activities is the highest wage industry it's also the fastest growing industry in terms of wages so if you look at insurance carriers for example annual average growth and wages over the last five years is three-point-seven percent that's well above the rate of inflation you can see in manufacturing it's just 2.2% even in professional and business services it's a little bit higher than that so not only is does the insurance industry especially insurance carriers provide high wage employment but that gap seems to be growing wages are growing faster in that industry than in Nebraska overall and in other key sectors of our economy now I'd like to get go back to that first poll question again so what is the highest ranked state in terms of the concentration insurance employment in other words looking at these four states that are rather famous for their insurance industries in which state is the largest share of employment in the insurance industry so I'll go ahead and give you all a few minutes or a few few more seconds to cast your vote ok well there's a partial hint on this slide but we it's still not the whole answer so go ahead if you haven't voted and think about your wow you'd like to vote what your answer would be I'd like to talk about one other key aspect of the especially the insurance carriers part of the insurance industry and it's that aspect of the insurance industry is a key part of our economic base in other words it's an industry that sure it serves the local economy but you think about insurance carriers they're actually serving the national and in some cases the international economy they've got customers located around the nation and they earn revenue from those customers that supports a lot of direct employment in Nebraska insurance carriers and so it's a key part of the economic base of our state in addition to being a high wage and growing wage industry and that's why we say that the insurance industry is such a key component of Nebraska economy now there were thirty three thousand three hundred jobs in the insurance industry in 2015 and to give a partial answer the poll question insurance employment is eighty-four percent higher than you would expect in the state the size of Nebraska in other words we have eighty four percent more employment / job more insurance employment relative to total employment than the average state in the nation so almost double so that is quite a concentrated industry in our state however as you can see in this in this table there is one state that has even a larger concentration of its employment in the insurance industry broadly defined insurance carriers but also brokerages and other related services you can see Connecticut is 1.96 location quotient shows the relative concentration of the industry meet sheet so Connecticut literally almost does have twice as much employment in this industry is the average state nebraska is 1.8 for eighty-four percent above and then after connecticut nebraska is quite a drop off in iowa minnesota and rhode island's another important state for the insurance industry so the industry is especially concentrated here in Nebraska and certain parts of Nebraska particularly so so we've recreated that same location quotient idea which shows you how concentrated in industry is within an economy in terms of employment and what you see here is that in Lincoln it's a location quotient of the value of 2.19 compared to 1.8 4% state at 1.8 for statewide that means that there's more than twice as much employment in the insurance industry in this Lincoln metropolitan area then there is nationwide that share is up to almost two and a half times as much concentration when it comes to the Omaha metropolitan area and even the rest of the state has the same share of its employment roughly as in the insurance industry as the nation as a whole so particularly our largest metropolitan areas we see a concentration in the insurance industry more evidence that's a key component of our time you know let's get now to economic impact so we talked about those thirty three thousand three hundred that's a great way to think about the direct economic impact of the industry how many jobs are located specifically in insurance carriers brokerages and other related firms but that's not all the whole story when it comes to economic impact we know that these economic base industries that bring new money into the state also support additional employment due to the multiplier impact so what do we mean by the multiplier impact well that's the other jobs that are founded businesses in other industries so throughout the economy whether it's retail weather is banking whether it's construction and housing it's the jobs that we that are that are found in Nebraska in other industries due to the economic impact of Nebraska's insurance industry the multiplier occurs first of all because insurance businesses do need to buy supplies they do need to buy services from other Nebraska businesses supporting employment and those other businesses and just as importantly the employees of the insurance industry they're going to spend their paychecks in Nebraska by and large businesses of all types think of everything that people spend their paychecks on whether it's housing healthcare recreation retail restaurants whatever it might be all of those industries benefit from that so we estimated all those multiplier jobs and added them to the direct employment of 33,000 302,000 15 to get the total economic impact and the total like an employment impact was nearly 60,000 jobs in 2015 we also did that in terms of overall impact on sales of Nebraska businesses and that's the first point you see in this slide 4 2015 Nebraska insurance industry spending will add or did add 14 point 2 4 billion in sales for the Nebraska economy again that's that includes both the direct sales and the multiplier sales that's a of the size of the impact on the state economy now the impacts were largest in the Omaha area but significant impacts are found throughout the state of Braskem here's another way to look at economic impact and in particular to look how economic impact as a vault over the last five years what you see is that in terms of output also known as fail business sales the economic impact grew almost 40% during that five year period so there was a big increase in premium revenue and resulting economic impact in our state's economy during that five year period there also as an increase in labor income impacts again that's the wages earned by insurance industry employees and also the wages are into the multiplier impact present that labor income impact grew by about twenty-five percent just over the last ten years or five years excuse me listen well now and I can see some people already have answered the question we're ready to ask our second question regarding the Nebraska insurance injury second poll questions so we'd like to know what the webinar participants think the answer is to this question is does the Nebraska insurance industry priority primarily create jobs for college graduates high school graduates community college graduates or all of the above it is very high wage industry does that mean it primarily creates jobs for college graduates or to Nebraskans that all education levels have opportunities in the insurance industry we'll go ahead and talk about the answer a little bit later feel free to to answer the poll question when you have a moment before we talk about that and the Brain Gain issue in general I do want to talk about the tax revenue impacts we saw a pretty substantial economic impact obviously when you have new economic activity or also got a tax revenue impact and we estimated that so 4 2015 we estimated that the Nebraska insurance industry generated over a five hundred million dollar impact on state and local taxes and peace in our state so a little over a half billion dollars in revenue now part of that was direct taxes paid by insurance companies in terms of the taxes and fees that they play to the Nebraska Department of Insurance but as you can see in this table there are also a lot of other tax revenue generated for state and local government including almost one hundred million dollars in income taxes for the state nearly a quarter million dollars in state and local sales taxes and also property taxes so a tax impact to match the economic impact that we saw earlier and lastly I'd like to talk about brain gangs I know this is an important issue for Nebraskans certainly something the state has looked at and working on for decades how do we avoid brain drain how do we keep young Nebraskans in the state after they finish their schooling later in their careers how do we keep them here and make sure that the state economy is benefiting from the very high level investment of Nebraskans make in education so that's known as the brain drain the loss of those skilled and talented people to other states we are you that the insurance industry and Nebraska plays an important role in fighting the brain drain in fact it contributes to what we call a bringing game and the reason for that is it offers high wage employment and the insurance industry also has a lot of new job openings available every year and many of these are filled by Nebraskans with post-secondary education so the industry really is effective at at retaining and attracting educated young more educated young people to the state as well now why does the industry have so many job openings obviously that might be partly because the industry is growing and adding employment on net and obviously that creates new job openings the projections that we're working with from the Brassica Department of Labor suggests that the insurance industry should be able to create about 160 570 new job net new jobs per year obviously that creates a lot of job openings but the primary source of job openings is due to retirement so 30 3,300 we're force going to be people of all ages and on that 33,000 some people are going to be near retirement age and indeed just for the normal course people live in their lives and going through their careers you're going to have quite a few people retiring every year from the from the large employment base of Nebraska insurance industry our analysis based on data developed by the US Department of Labor suggests that noon industry like insurance about 4.1 percent of the workforce separates in a category called other separations this primarily means through retirement and if you apply that rate to our Nebraska insurance industry see it creates almost 1400 job openings a year so if you add those to the net new jobs you're around fifteen hundred and forty job openings every year in high wage jobs created I are Nebraska insurance industry so this is creating a lot of opportunity for Brain Gain to it to retain and attract Nebraskans in our state special young Nebraska now what kind of jobs are being created well we know they're high wage jobs but here we can see some evidence of the degrees or the level of education that s a good match for the job openings in Nebraska's insurance industry so these are the top five occupations in the industry based on the education level of the typical job holder in that occupation and what you can see is the two of the five hour jobs that are appropriate for people who hold whose highest level of education is a high school diploma two of the five jobs typically require a bachelor's degree and one of the five top occupations could go to someone with a bachelor's degree or some college which include it's people maybe didn't finish college also includes people with associate's degrees so the point of this is to show that these job opportunities that are being created are actually applicable to a lot of Nebraskans it's not just college graduates so there's high wage opportunities out there for people at a variety of education levels and that's just more evidence of how the Nebraska insurance industry contributes the brain gain in our state well those are the main points we wanted to make highlights of our report we wanted to see at this point what questions you have we certainly want to thank you for taking the time to participate in our webinar and I see that no questions were typed during the presentation but if anyone will wait a few moments here if anyone would like to type in a question be happy to answer I want to thank you again for participating in our webinar and we certainly enjoyed presenting it to you and enjoy the opportunity to conduct this research and share it with the industry and with the public in Nebraska I would also mention you know please feel free to follow the bureau business research is a research in general on a regular basis whether we're studying the insurance industry or other important aspects of our state's economy you can see how to follow us on social media whether it's linkedin facebook or twitter and you can also subscribe to our newsletter to simply send an e and E me your email address your preferred email address to be BR at UNL edu and we'll make sure we've added you to the our monthly email list oh now I did see one additional question the several have come up now the first question is what is the prospect for a young talent entering the field well i think you know obviously for young people throughout the economy it's always challenging to get your career started so i would i'm always going to recognize that getting started in a professional career is a challenging exercise but for for young people interested in actuarial science interested in other occupations within the insurance industry this is a great state and to have those interests because of the opportunities we have not just one large employer but a multitude of large companies of national scope in the insurance carrier sector for example with potential to to start a career or to you know change change employers so it's a good place for a young person at a variety of education levels I think that's what we found in our research the second question is how secure is the bureau feel about retaining our insurance group well that's always a hard question I think that we have several advantages for retaining the insurance industry the first of all is you know like a lot of industries there are a lot of specialized skills required of workers in the insurance industry and it can be challenging to find places with an abundant supply of those workers so one big advantage Nebraska has and obviously Connecticut through the other states we talked about have is that skilled workforce that's ready and available we're also adding to that workforce to some of the education programs that we have we have very strong education programs and a lot of relevant insurance occupations obviously the insurance industry has also been a big part of our state's economy for a long time so I think to some extent the state the state of Nebraska has been careful to make sure it has a strong environment for businesses and the insurance industry although you know there's always debate on that topic and room for improvement but I think that's a significant advantage so you know we have a cluster here we have the skill I think that is helpful what factors make Connecticut and Nebraska such a prominent place for the insurance industry well I would refer to my previous answer again it's a it's a least a sensitive and well thought out rate environment in the state terms of policy it is you know there's a lot of expertise at the executive level and the management level on how to run insurance companies in our state there's also entrepreneurial talent in the sector and again there's that skilled workforce that you know is challenging to find in any professional industry and and we have a button abundance in our our state night in Connecticut say that as well fourth question was the investment of assets that insurance companies own included in the economic impact no it was it was not so we were focused on the average annual operating activity of insurance companies themselves not so much activity on related investments fifth question there are a number of national insurance companies that are dull muscled in Nebraska and have to click on this deceitful question can can you talk about why that is and what we can do to help grow their operational presents the state I'm going to have to I'm going to have to confess I I can't provide a good answer to that question I'm sorry just as we did the research we didn't we didn't look at issues that helps me to provide a strong answer that question I'm sorry about that Jennifer and that I think is the last question in case any additional questions come up I also would mention one other thing that we we are having you know upcoming webinars the next webinar is going to be on March 31st we'll look at the issue of highway spending and how that contributes to economic growth and the quality of life around the country with implications here for the state Nebraska so I encourage you to sign up for that webinar as well again we'll wait a minute if there are any additional questions thank you again for participating in our webinar today