How to beat the insurance industry’s age crisis

The insurance industry is projected to lose 400,000 workers through attrition by 2026. The sector faces an aging workforce while struggling to engage younger millennial and Generation Z talent. Insurance companies are finding it difficult to recruit and retain workers, a challenge becoming more difficult year-over-year. With traditional recruiting coming up short, innovative businesses in the sector are looking at alternative strategies to secure the talent they need.

Why the insurance industry struggles to hire

Insurers have grappled with the perception that they are slow to innovate and run on outdated technology. Often burdened with complex processes and products, regulatory constraints and legacy systems, the industry has gained a reputation for lagging in digital transformation.

Moreover, insurance doesn’t garner the enthusiasm associated with other sectors. Instead, it suggests detailed paperwork, legal contracts and regulations. Although these elements are part of the business, many other areas within insurance now leverage sophisticated technology and Generative AI, and operate in an increasingly fast-paced environment.

The solution to overcoming insurance’s recruiting and hiring challenges is twofold: showcase the benefits of working in the insurance industry to early-career talent and broaden talent pools from nontraditional backgrounds.

Grow your talent pipeline

It’s time to shake up your traditional recruiting methods, which could be excluding candidates who would make excellent candidates for your organization. Here’s how:

• Look at candidates with transferable skills from other industries. Professionals from finance, technology and customer service often have skills that can translate cleanly to insurance roles.
• When sourcing potential hires, search for candidates from nontraditional educational pathways such as boot camps and online courses. These professionals have acquired knowledge, perspectives and problem-solving abilities through these alternative routes.
• Implement work-based learning programs. Apprenticeships, internships, and co-op programs provide the needed skills through hands-on learning environments outside of four-year colleges and universities.
• Eliminate bachelor’s degree requirements from job descriptions. A recent survey of 800 U.S. employers revealed 61% of finance and insurance companies have already eliminated four-year degree requirements for some positions.

Appeal to Gen Z and millennials

Talent acquisition leaders and hiring managers should be attuned to benefits that appeal to Gen Z and Millennials, highlighting those advantages at every stage of the recruiting process.

Corporate social responsibility. Eighty-one percent of millennials expect companies to make a public commitment to good corporate citizenship, and almost 8 in 10 Gen Z workers say it’s important for them to work for an organization whose values align with theirs. Promote your organization’s CSR initiatives throughout the sourcing and hiring process. Along with CSR, be sure to explain how the very nature of insurance is socially responsible: your company supports customers during some of life’s most challenging events.

Technological innovation. Showcase the technology your company uses to innovate, breaking down the stigma that the sector uses antiquated tech solutions. A recent survey revealed 67% of companies are already piloting AI systems designed to understand and generate natural language. Candidates may not realize the role AI plays in fraud detection, assessing risks accurately, and setting prices accordingly.

Stability. Millennials and Gen Z crave financial stability, so underscore how your company provides it, even during uncertain economic times. Share examples of successful long-term careers in insurance. Highlight the work-life flexibility that jobs in the insurance industry offer.

Multiple career paths. Many people, especially those coming from outside the industry, are unaware of the diverse roles available in the insurance field. Data analytics and underwriting, customer experience design, risk management and cybersecurity are just some of the jobs outside of traditional sales and claims processing.

Change for the better

Overcoming the challenges of talent acquisition demands bold action: expanding the talent pipeline beyond traditional sources and courageously rethinking your approach. Successful insurance hiring strategies require a change in perspective. By broadening our view and embracing innovative talent acquisition strategies, we can redefine the future of the insurance workforce.

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Michelle Sims is CEO of YUPRO Placement. Contact her at [email protected].