Gen Z says insurance’s slow AI adoption fuels talent crisis

A new survey finds the insurance industry’s slower adoption of AI is keeping Gen Z from making insurance a top career choice, adding to the industry's talent crisis.

Counterpart, an agentic insurance platform, and Young Risk Professionals surveyed U.S. insurance professionals aged 21 to 35 and found that most highly valued the stability the industry can provide. However, the survey also found a “striking disconnect” between Gen Z’s expectations regarding AI and the reality on the ground.

“There’s a big gap happening between what we’re seeing in the broader economy versus what’s happening in insurance. These young professionals are smart. They’re recognizing, ‘Wait, hold on, the world is changing around me and we’re sitting still in insurance,’” Tanner Hackett, CEO, Counterpart, told InsuranceNewsNet.

Hackett urged the insurance industry to find solutions on how to cross that chasm, acknowledging that AI is likely going to be broadly entwined into everyday practice for many aspects of the business.

For Gen Z, an AI disconnect

At a time when attracting new talent to insurance is critical, Counterpart’s survey found job stability and career advancement opportunities are the two biggest draws for young professionals.

Sixty-four percent of respondents strongly valued stability and said it was their main reason for going into insurance, while 54% said career advancement was their main reason. Over two-thirds of all respondents said the job benefits and compensation offered by insurance are a major attraction.

However, a clear gap emerged when it came to AI. According to the study, Gen Z does not view AI as a threat or a major risk to be avoided, but as a beneficial tool they both expect to use and want to use.

Seventy percent of respondents said they are not worried about AI taking their jobs, 69% believe it will help with their daily workflow and over 70% believe it will improve their performance.

These high percentages stand in sharp contrast to their lived experience in the industry, as just 8.5% said they are strongly encouraged to use AI on the job. Only 27% of young insurance professionals said they are currently using AI every day, and 45% said this slow adoption of technology is a serious issue in the industry.

“I think there’s a reconciliation that’s going on with young professionals and the fact that their career path is not as obvious as it once was,” Hackett said. “AI is this looming threat over this otherwise pretty clear career path for them that could affect the stability and career advancement opportunities.”

Insurance is still behind

Hackett, who is fairly new to the insurance industry, having entered the industry about six years ago, noted that insurance is still “woefully behind” when it comes to AI.

“The industry has been able to stave off change for a very long period ... the systems, the tools, even the thinking are behind that of other industries that I’ve been in. But we’re seeing that AI could be this cataclysmic factor in reshaping how insurance is done,” he said.

In his view, insurance is “ripe” for artificial intelligence and machine learning — and young professionals not only see that potential but are enthusiastic to use AI tools.

“I have found, personally, there’s a lot of enthusiasm from our employees, and we’ve hired from some of the largest insurance carriers in the world folks that have this anxiousness to apply themselves, but they’re not given the opportunities in a larger organization,” Hackett said.

This disconnect, he suggested, can be a major downfall as young professionals see “all of their friends are using this tool, and then they go into work and it’s ignored for the most part.”

However, he said it can also present an opportunity for insurance companies to “lay out the breadcrumbs for what the future looks like and how young professionals need to adapt or be a part of that future.”

“I think change is scary in any organization. I think the scariest part of change, though, is when you have an industry that has not yet acknowledged the magnitude of the change,” Hackett said.

Workforce facelift

One of the ways companies can tackle this challenge is by not only reskilling their workforce but also rethinking roles, job descriptions and mentorship opportunities, Hackett suggested — essentially bringing an AI facelift to all aspects of the workforce.

“Set clear expectations with employees about their responsibilities and what type of expertise they need in AI, or the very least familiarity that they need to have with these tools,” he said.

Additionally, insurance professionals can use the opportunity to present themselves as resident AI experts, redefining their roles as the go-to person for AI training, guidance or support.

However, he suggested the process should start with a top-down shift in the way an organization views AI and an understanding that it will be a learning process that will require a continual, adaptive approach.

“First is top-down alignment on the impact of AI in insurance. We shouldn’t be shy about that because I think the worst thing that a company or an industry can do in the face of change is nothing,” Hackett said.

Founded in Los Angeles, CA, in 2019, Counterpart is a management liability and professional liability MGA that blends cutting-edge technology and insurance expertise. Founded in 2013, Young Risk Professionals' mission is to empower the next generation of leaders in the Risk & Insurance Industry.

Counterpart commissioned a survey of 138 young (Gen Z) professionals across the United States in June 2025. Respondents include carriers (46%), retail agents (19%), and wholesale brokers (7.7%), with roles across claims, project management, and engineering/technology.

© Entire contents copyright 2025 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

Rayne Morgan is a journalist, copywriter, and editor with over 10 years' combined experience in digital content and print media. You can reach her at [email protected].