Internship programs remain a win-win for the insurance companies and brokerages that provide them and the college students who are hired for the jobs despite the troubled U.S. economy, officials say.

For insurers and brokers, internships provide a way to bring in fresh talent as the industry's workforce ages. For interns, the programs provide gainful employment in a tight job market and experience in a multifaceted industry.

Companies scout for interns through academic contacts and career fairs sponsored by colleges and universities. The students are interviewed and recruited during the summer months for what is generally a paid, nine- to 10-week program.

"It's all about conversion into new hires," said Christine Lahey, vp of corporate employment for Boston-based Liberty Mutual Insurance Co., who hires about 350 undergraduates a year for the insurer's internship program.

Liberty Mutual offers traditional business-related positions such as accounting, finance and human resources as well as insurance-specific jobs such as handling claims, underwriting coverage, preventing losses and conducting actuarial work.

Mark Henderson, executive vp and chief operating officer for Kansas City, Mo.-based Lockton Cos. L.L.C., sees internships as an opportunity for business and risk management majors to gain direct experience in the industry and the company, "but really, it gives (Lockton) the opportunity to interview them for 10 weeks."

Along with a carefully charted work program, interns are required to take courses in business etiquette and are placed into various social business situations, culminating in individual projects presented to Lockton senior executives.

Of approximately 20 interns hired by the recruiting staff at Lockton's corporate offices, 30% are offered positions and about half of those become associates.

For more than 20 years, Warren, N.J.-based Chubb Group of Insurance Cos. has linked its internship and training programs with the intent of looking from within to hire full-time employees.

"More often than looking externally to supply our future needs, we hire trainees. So interns are an extension of that program," said Angela Alper, talent acquisition manger for Chubb in Warren, N.J.

Although Chubb does not anticipate as many interns this year as prior years, the program is very much active, she said. "Chubb has a tendency to hire more interns and trainees than some of our competitors because we do believe it is worth it," Ms. Alper said.

Rising unemployment has given Chicago-based CNA Financial Corp. the opportunity to expand its program, allowing recruitment of "more people with work experience," said David Ueki, recruiting manager for CNA.

Zurich North America launched its internship program four years ago to change false perceptions of the insurance profession, said Debbie Jandt, manager of university recruiting for the Schaumburg, Ill.-based insurer. "We're more than just insurance. We're trying to get away from the stigma of the briefcase and going from door to door," Ms. Jandt said.

At Itasca, Ill.-based Arthur J. Gallagher & Co., a conscious decision was made this year to maintain the company's internship program and focus on revenue-generating positions, such as brokers.

"This is an important recruiting device for us, and it's focused on producers who we are always in need of," said Terry Hennen, director of corporate branding and communications for Arthur J. Gallagher in Itasca, Ill.

With 157 interns participating nationally last year, Arthur J. Gallagher expects to hire about the same number this year, Mr. Hennen said.

"We view the internship program as a way to bring entry-level talent into the organization," said Liberty Mutual's Ms. Lahey. Successful interns may have job offers in hand as they return for their senior year in college. All interns who return to school with a job offer are awarded a $1,500 grant to use toward educational costs.

"We want to really drive home the point that we're committed to them, and we hope that they are committed to us," said Ms. Lahey, whose goal is to convert approximately 120 interns into full-time employees each year.

"We want them to come away from the program with a very clear understanding of the duties and responsibilities of a Lockton account executive," Mr. Henderson said. "The traditional outlet of going to the insurance companies or going to our competitors to find people is a very flawed model. If we could get to where we 100% promote from within, we will then truly be in control of our own destiny."

Additionally, insurance companies are eager to engage students who might not consider the industry a career.

"Insurance isn't one of the better-known industries to go in," said CNA's Mr. Ueki. "We have to do active recruitment to get people familiar with insurance."

"The whole insurance industry is aging, and we're trying to do something about that," said Arthur J. Gallagher's Mr. Hennen. "Bringing young people in adds a lot of energy to the whole workforce and it's setting us up for the future, too."