Opinion: ‘Industry’ versus ‘profession’ – are we selling ourselves short?

My career as a journalist and yours in insurance perhaps have more in common than one would expect.

Primarily, both of our day jobs are very focused on language. Reviewing business interruption policy wordings at the onset and height of the Covid-19 pandemic is a prime example here, demonstrating the power that a particular choice of words can have and the nuances or connotations they can convey.

The same thinking can be applied to the use of language to define our sector – if indeed we should be called such. For example, market practitioners have recently been debating whether we should be termed as an “industry” or a “profession”.

In conversation with Mike Edgeley, group chief executive at intermediary Clear Group, he spelled out to me what he believed to be the key difference between these two terms.

For him, “industry” is associated with economic action, supply chain activity and the “process or production of goods to deliver the end product”, focusing on the “construct of what we are rather than the reason of why we’re here and what we do”.

On the other hand, “profession” emphasises the “people, skills and knowledge” of those that work in insurance.

There is a reputational impact when using “industry” or “profession” too, Edgeley added.

He told me: “[The word ‘industry’] underplays the profession from a people perspective and comes across a bit bland.

“[Although] both terms are applicable, when we describe ourselves as [an] industry, [this] underplays the profession from a people, skills and knowledge perspective [and] is partly why some would argue [that] we don’t have the same status as occupations such as lawyers, solicitors [and] accountants.”

Even artificial intelligence agreed with Edgeley’s perspective. ChatGPT said: “Calling it an industry refers to the broader economic and business framework, while calling it a profession refers to the specialised expertise and standards expected of the individuals working within that framework.”

Branko Bjelobaba, principal at Branko, also acknowledged a difference between the use of “industry” and “profession”, with “the latter meaning practitioners have to be qualified to practice and maintain the validity of their professional qualifications”.

He continued: “The insurance industry does not mandate professional qualifications to practice and so we are an industry – but we still have to keep up to date to meet FCA competency rules.

“It is a shame that the general insurance industry does not commit to a minimum level of qualification for all client-facing advisors. Professional qualifications demonstrate to a client professionalism and everything else this entails.”

Increasing the usage of “profession” makes sense to me because insurance is such a people driven and community minded career. However, I don’t think the sector can deny that it is also very much an “industry” of many moving parts and processes.

What do you think?