Insurtech: The secret weapon in the fight for talent
In the next few years, almost 400,000 insurance professionals will retire, according to the U.S. bureau of labor statistics. Given that number, it might be no surprise that the insurance world is facing a serious talent shortage. Why is replacing those retiring professionals proving so difficult? Why is the insurance talent war escalating? And, crucially, how can companies compete for the best hires?
Let’s start by diagnosing the problem. In addition to those looming retirements, other causes are contributing to the labor shortage, including:
The Great Resignation
Between January 2021 and February 2022, nearly 57 million Americans quit their jobs. The insurtech and insurance industries were far from immune to this movement, and the fallout continues today. The shortage of qualified candidates to fill open positions has become so urgent that there are a growing number of online job boards dedicated exclusively to the insurance industry. iHireInsurance, for example, currently has more than 220,000 open jobs on its site.
Lack of awareness or interest
Too few up-and-coming professionals are aware of the many opportunities presented by our industry. Insurance is also largely perceived as a field lacking innovation, with jobs defined by bureaucracy and repetitive work, which can deter younger generations looking for more exciting careers.
Skill and knowledge misalignment
Despite that public relations issue, our industry is, in fact, changing. Accelerating technological advancements in areas like data analytics, artificial intelligence, and digitalization require skills and competencies that many in the existing talent pool sorely lack. Insurance leaders must find ways to attract tech-savvy employees in fields such as data science or re-skill their existing workforce.
Competition from other industries
Other industries, from technology and finance to healthcare, are fighting for much of the same talent. To lure the right candidates, some companies are offering higher salaries, more attractive perks, and opportunities for rapid career advancement, making it increasingly difficult to compete.
These factors aren’t going away overnight, but insurance organizations can make one move to help put themselves in front in the talent race: upgrading their insurtech.
How going digital can attract and retain talent
Though it may have been slow in ramping up, the insurance industry’s digital revolution is well underway. Forward-thinking organizations are embracing born-in-the-cloud insurance management platforms that transform how employees work and how customers interact with their insurers, agents, and brokers. These platforms offer numerous advantages in the fight for top talent.
Insurance organizations that make strategic investments in advanced technologies like automation, artificial intelligence (AI), machine learning, and data analytics will be able to navigate the talent shortage by streamlining operations, improving overall efficiency, and enhancing the employee experience. The goal here is to empower your people and eliminate repetitive tasks that hinder them from performing the aspects of their jobs that they care about most: helping customers and solving complex problems.
Improved customer experiences
The best of the new management platforms include self-service features, giving customers remote access to their own policies 24/7. This allows them to make adjustments, make payments, and file claims on their own. This not only serves to boost customer satisfaction but also to reduce the workload of employees, who no longer have to manage all those needs manually.
Streamlining processes with automation
The insurance industry’s reputation for busy work is well-established. The old way to handle workflows from quote to bind are bogged down by manual tasks that repel up-and-coming talent. A smart management platform will automate many of those tasks, eliminating busy work and notifying the right team members when something is ready for their attention. This slashes processing times (happier customers) while also freeing talent to focus on more skilled tasks (happier employees).
Optimized operational costs
Streamlined workflows and self-service customer features combine to improve operational efficiency. Legacy technology that fails to keep pace with the evolution of an insurance organization also comes at an extra organizational cost. Investing in modern technology can help reduce both IT and labor costs. Eliminating administrative overhead or the time and resources it takes to maintain an outdated system means organizations can dedicate more resources to recruiting, hiring, and retaining the talent everyone’s competing for.
More opportunities for growth
The right management solutions will meet the needs of the insurance organization while delivering a top-notch customer experience. It will also remove barriers such as data silos that prevent an organization from making data-driven business decisions. Ideally, a technology solution should empower an organization to identify trends, assess risk profiles, and create new products and services informed by real data. This leads to opportunities for innovation and growth that the best talent will seek.
The war for insurance talent is only going to intensify. By going digital now, you can position your organization as an attractive option for employees who want to work smart, learn fast, and grow with you.
