Leading the way: insurers are looking to employees with good leadership skills to face current market challenges with confidence. (Property/Casualty: Underwright Insight).

"The ultimate measure of a man is not where he stands in moments of comfort, but where he stands at times of challenge and controversy."

The Rev. Martin Luther King Jr.

A leader's ability to cope when the "going gets tough" demonstrates his or her depth of strength and courage. The Rev. Martin Luther King Jr. was defined by his ability to demonstrate strength during difficulties.

Today in an insurance industry faced with its own set of challenges, underwriters are dealing with a hard market, terrorism, an uncertain economy new exposures such as mold, increasing litigation and industry changes. But similarly today's underwriters are going to be defined by their ability to rise to the occasion and deal with such difficulties.

For underwriters, the business climate lingered in the soft market for a long time. It featured cheap policy rates and broader terms of coverage. Currently, underwriters are struggling to write profitable business, deal with weak investment returns and address rising medical and litigation costs. Getting back to the basics of underwriting will be essential to navigate these challenges.

But will returning to the basics of underwriting be enough? Many insurance professionals are experiencing a hard market for the first time. In addition to requiring underwriting talent and sound technical skills, insurers are looking to employees with good leadership skills to face current market challenges with confidence.

Most underwriters could not have anticipated how mold, terrorism and directors and officers losses would throw underwriting for a loop. Unanticipated risks and events will always exist. Good leadership is essential for dealing with the unexpected. This means tapping into the leadership skills of an insurance professional to lay the foundation for success. Critical leadership skills include team building, resilience in the face of change, successful negotiation, clear communication and effective project management.

For example, team building is a valuable leadership skill. A good leader promotes teamwork and the coordination of efforts to accomplish goals while using the collective expertise of the group. In addition, a leader encourages others to develop skills and effectiveness. Promoting success among individuals helps the greater good of the team.

Successful insurance companies have used teamwork to survive challenging times. Though all companies have seen their share of ups and downs, those that endure develop good leaders and work as a team. Companies experiencing tough financial losses or stagnant growth often find that relying on insurance expertise alone is not enough. Tapping into solid leadership does more for the success of the company.

"Leadership and learning are indispensable to each other," said President John E Kennedy who realized that developing as a leader is a constant learning process. Leadership is a skill that can be developed, and participating in educational opportunities is part of that. The CPCU Society encourages its members and all insurance professionals to broaden their skills by continually pursuing technical education and leadership development opportunities. This is encouraged at all levels--from aspiring leaders to the chief executive officer looking to sharpen his or her skills.

Valuable leadership development opportunities exist in our communities and industry associations. According to the Wall Street Journal, "three to five years as an association volunteer yields management experience most corporations couldn't provide over 20 years." This hands-on approach, available in many volunteer organizations, provides professionals with invaluable leadership experience.

In addition, seminars and training programs, such as the CPCU Society's National leadership Institute, provide excellent leadership development opportunities The concepts learned there and through volunteer experiences can be applied to the work environment immediately. These opportunities should be embraced by insurance professionals and our industry leaders. Continuous leadership development, no matter how it is pursued, makes for better insurance professionals and builds a better insurance industry as a whole.

Kennedy concluded his point by noting that "the products of that learning, in turn, are essential to the leadership's hopes for continued progress and prosperity." Getting back to the basics of underwriting is important, but it's great leaders who will help the insurance industry achieve long-term progress and prosperity.

Although the world around us is changing, developing sound technical expertise and leadership skills such as team building will make adjusting to it easier. Many will achieve both personal and career success and develop the ability to guide us through challenging times.

James R. Nau, president of the CPCU Society is general manager residual markets, for the National Council on Compensation Insurance, Boca Raton, Fla. He can be reached at [e-mail].