Three steps to bridge the insurance skills gap in 2020

Adopting modern tech and fostering relationships across generations can help insurance companies can close the skills gap.

When job searching, many millennials and Generation Zers look for companies that offer career advancement and learning opportunities. (Photo: Fotolia)

Within the Insurance industry, there are many paths professionals have the opportunity to explore. From actuaries to underwriters, the insurance industry provides young professionals with a wide range of career paths. In fact, according to the U.S. Bureau of Labor Statistics, as of January 2020, the unemployment rate for the insurance industry is 2.9%, meaning the industry is ripe for new talent.

However, with baby boomers set to retire and new generations entering the workforce, only 4% of millennials are interested in working in the insurance industry. In addition, according to a recent survey, only 16% of respondents think there will be enough graduates to fill open positions in risk management by 2025. Younger generations tend to have a negative perception of the industry due to its slow adoption of technology and their overall lack of knowledge about opportunities and careers within the industry.

Insurance companies are in a unique position to close the skills gap by adjusting their overall strategy to embrace more advanced training in the hiring process, adopt modern technology, and foster relationships between older and younger generations.

Offer advanced training modules

With the introduction of new technologies and processes, companies are living in a constant state of change, yet it’s expected that employees adjust workflows to keep up. Because of this expectation, traditional training programs are no longer a practical option for employers looking to recruit young talent. For insurance companies, it is essential to embrace technology in their training efforts to create a workforce that is agile and can effectively adapt. A training investment can equip employees in digital literacy as well as future capabilities.

Similar to other industries, insurance companies need to integrate an efficient and comprehensive hiring and training program. Companies should be investing in tools where necessary credentials and documents can be uploaded, issues can be flagged and addressed quickly, and training modules are readily available for completion.

Adopt modern technology

One way for the insurance industry to appeal more to younger generations is to embrace technology in their day to day operations. Millennials and Generation Zers have grown up in the digital age, and as a result, outpace older generations in the overall adoption of technology.

While the insurance industry has been slow to embrace technology, employers are beginning to seek technology that can address data and analytics specifically. Recently, many companies have started integrating artificial intelligence (AI) into various aspects of their business, including tools to enhance customer experience and streamline underwriting services. Research shows that machine learning capabilities are already being used in the insurance space to automate policy writing. As insurance companies embrace new technology, they increase the opportunity to attract more young professionals.

Foster relationships between older and younger generations

Different generations can grow and learn from each other as they share one another’s ideas and experiences. When job searching, many millennials and Generation Zers look for companies that offer career advancement and learning opportunities. One way an insurance company can attract and retain young professionals is to provide a mentor.

According to a recent survey by Gallup, 89% of millennials and Generation Z employees respect and are loyal to mentors who care and teach them new skills. By implementing a mentorship program, insurance companies are able to connect industry veterans with young professionals to pass along their extensive knowledge and experience.

The U.S. insurance industry employs over 2.7 million people and is only expected to grow. As an industry, it’s our responsibility to embrace technology and shift our processes to adapt to the changing times. By offering more advanced training modules, implementing technology to help with daily tasks, and fostering a relationship between older and younger generations, your company can bridge the insurance skills gap and attract top talent.

Cooper Wallach is VP of specialty at Fortegra. Opinions expressed here are the author’s own. 

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