Leveraging technology to tackle the war for talent & attract the next generation
I had the opportunity to speak at RISKWORLD2024 in San Diego in May on ‘Addressing the War for Talent’. With a shortage of graduates choosing insurance, and a retiring workforce, our industry is ironically facing a major risk — one that we need to make a conscious and concerted effort to safeguard against.
With a global market value greater than the GDP of many countries, the world (literally) could not function without insurance. Around $6.8 trillion of premiums were written in 2022, meaning the global insurance industry is larger than the overall economy of Japan, Germany and the UK, and by 2028, Statista forecasts that the global market will reach almost $10 trillion. Now that’s big business.
Statistics are one thing, but they do not tell the whole story. Behind every policy and premium there are people whose passion, expertise and commitment to their clients, customers and employers drives insurance perpetually forward.
As we charge at break-neck speed towards an ever-more digitalized society, we must not forget that these talented, dedicated and visionary people remain the lifeblood of our industry. Attracting and retaining the next generation of digitally literate talent — young people who can work in harmony with innovations like AI, not in spite of it — in the face of intense competition from rival (and, let’s face it, sexier) industries, must be an absolute priority for all of us, from multinationals to SMEs.
But wait, I hear you say, who says insurance isn’t cool? To which I would respond that the sector has something of a perception problem when it comes to attracting talent. The image of the stuffy insurance man with a bowler hat and umbrella is as pervasive as it is outdated. We must all work to change this; after all, investment in human capital is not just money well spent today — it ensures that our industry continues to attract and retain the brightest and the best in the future.
A recent PWC survey found that more than half (55%) of the financial services executives cited talent acquisition and retention as one of the biggest risks that could prevent their companies from achieving growth goals. At the same time, McKinsey’s 2023 global insurance report highlights that 25% of the commercial carriers’ workforce will retire in the next 10 years — a major gap to fill.
With this in mind, we believe the industry must adopt a three-pronged approach to talent: recruit tomorrow’s workforce, retain the existing workforce and retrain the retiring workforce.
The final point is key: veteran employees must not be cut out of the technology loop if they are to continue adding value to the industry — nor must we allow this vast pool of knowledge acquired over decades of service to exit when people retire. Therefore, as well as training the older workforce to adjust to a more digital environment, we must establish succession plans to ensure their expertise is successfully integrated with new skillsets and perspectives from the younger generation.
As for retention, the good news is that companies are already deploying AI, cloud and data analytics solutions to optimize processes, reduce bureaucracy, expedite claims and offer a broader range of products, not to mention making insurance a more attractive, globally minded and forward-thinking space to work in.
As for promoting insurance as a desirable career choice, we need to show off and shout louder, and show graduates that risk management is a resilient, attractive and lucrative industry, one in which boring manual tasks are being reduced and exciting digital dimensions are being explored.
We need to engage students from the outset and provide innovative, leadership-based training that is progressive and prepares talent for an industry that is becoming more digital and dynamic by the day. That’s why our company tore up the training rule book and transformed what was the WBN Young Professionals Program into the Catalyst Academy — “because every career needs a catalyst” — which invests in a new approach to mentoring — something we should all be doing more of. The aim is to fast-track the careers of the rising stars of the future, empowering them to make a positive impact, gain global perspective and future-proof the sector.
Finally, as a female CEO, I know that diversity — not just of gender but also of thought — is a powerful weapon for change. So, in addition to AI, let’s recognize that emotional and cultural intelligence are genuine assets that can help attract Gen Z and add a real competitive advantage to your businesses.
The global insurance industry is undergoing a profound transformation. Risk management is starting to take its rightful place at the top table and our clients rely on our counsel more than ever. However, there is still a lot to do to attract and retain our most prized asset: people. We must prove to the next generation of talent that we are truly embracing the digital revolution and the enormous opportunities it presents.
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