The 3 steps to build a sustainable workforce for the insurance industry

The insurance industry is facing a talent crisis. The U.S. Chamber of Commerce reports that 50% of the current insurance workforce will retire within the next 15 years. This will result in a retirement cliff with more than 400,000 open positions, with less than 25% of those working in the industry under the age of 35.

To attract younger talent, the industry must change the way it operates in three key areas to reverse these trends and build a sustainable workforce for the future. These areas are automation, education and diversification.

Automate to save time and money

Automation during staffing shortages saves brokers time and money by eliminating or reducing time-consuming or repetitive activities in open roles.

Underwriters, for example, are the lifeblood of insurance agencies, but dwindling interest in that profession from millennial and Generation Z workers has led to a significant labor shortage.

Artificial intelligence can automate repetitive tasks such as data entry and frees up underwriters to perform discerning tasks such as approvals. Employees can do thought-provoking work that makes them feel more valued. In addition, AI reduces the risk of human error.

McKinsey predicts that 30% of an underwriter’s job could be automated in the next 10 years. This presents insurance companies with an opportunity to reshape this role to improve efficiency and attract younger workers.

Educate the next generation about the insurance industry

According to a survey by The Institutes, eight out of 10 millennials report having limited knowledge and understanding of the employment opportunities available within the insurance industry.

Target Gen Z and younger generations before they enter the workforce. Traditional routes, such as job fairs, are great ways to get valuable face time but it’s also worth exploring using social media as a recruiting tool. It can be a great way to showcase your current employees and your workplace culture.

Diversify your workforce by casting a wider net

Searching for talent outside the insurance industry will create a greater diversity of skills, backgrounds and experiences which will bring new ideas and perspectives to your brokerage. Cast a wide net in your candidate search by looking for transferable skills from other industries.

Transferable skills include:

• Administrative skills. Data entry, scheduling appointments and answering phone calls are universal skills that can be applied to administrative roles in any office such as an underwriting assistant or claims processor.
• Sales skills. Sales talent is faster to train because they have skills a buyer’s agent needs such as objection handling and closing. You just have to teach about your product offering.
• Customer service skills. A proven track record of strong communication skills is valuable in any client-facing role such as an office manager or billing representative.

It’s also worth reconsidering some of your requirements for certain roles. Does every employee need a four-year college degree? Are licenses required or can they be earned on the job? Don’t create unnecessary barriers that might exclude quality candidates.

The competition for talent in the insurance industry right now is even more fierce than the competition for clients according to the 2021 Independent Insurance Agent Survey. When hiring is harder than ever, it’s key to use strategic recruiting methods to fill your talent pipeline.

Sid Upadhyay is the CEO and co-founder of WizeHire. He may be contacted at [email protected].

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