Attracting the right talent may be the biggest challenge insurers face in 2022, Deloitte’s Annual Insurance Industry Outlook reported.
At least one-third of the respondents to Deloitte’s global insurance survey said they expect to increase head count next year. That’s because insurers are preparing for even greater economic recovery and a boost in their own business volume, spurring the need for additional resources to manage a rising workload.
The big question, according to the survey, is where that talent will come from and how the industry will be able to recruit and retain those with the necessary skills. The survey found that 43% of respondents said it’s becoming more difficult to find skilled candidates in a number of areas, with information technology named as the most challenging area for recruiting workers.
Deloitte found that despite lingering concerns about the potential impact of COVID-19 variants, global insurers expect to see premium growth in 2022. An accelerating economy and additional investments in technology are expected to generate significant growth for the insurance industry.
Insurers remain fairly bullish over their 2022 growth prospects, despite lingering concerns about the potential impact of COVID-19 on overall business recovery, the survey found. Most insurers said they plan to increase their investments in technology and talent in the coming year.
However, the survey also found insurance industry leaders will face a number of challenges in 2022. In addition to the talent recruitment challenge, the industry must deal with the potential for sustained inflation, sustainability concerns including climate risk, and rapidly evolving consumer preferences.
Insurers also must become more proactive in seeking solutions to “big picture” societal problems, the survey found, such as mitigating the financial impact of future pandemics and closing coverage gaps for natural catastrophes.
In the global property/casualty market, the survey found that rapid increases in material and labor costs combined with ongoing supply chain disruptions continue to raise claims costs for P/C losses. In addition, financial losses from climate risks will continue to cut into P/C insurer profitability.
Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected]. Follow her on Twitter @INNsusan.
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