How online learning impacts the P&C insurance industry
Companies that leverage e-learning to upskill existing employees will have a cost advantage and a motivated workforce.
Online education has become the norm for millions of students during the coronavirus (COVID-19) pandemic. While virtual learning platforms have grown in popularity for many years, the COVID-19 crisis has accelerated their acceptance and adoption like never before.
The shift from in-person to virtual learning environments is likely to persist even after it’s no longer necessary for the sake of avoiding the virus and staying healthy. Therefore, it’s critical to consider how the online education trend may affect the property & casualty insurance industry.
Online education can help fill an expected talent gap.
There is an expected talent crisis in the insurance industry due to younger people’s career preferences and the age of current insurance workers. As insurance agents, support staff, underwriters, and corporate executives approach retirement age, there isn’t an equal number of younger workers coming in to replace them. That could leave thousands of jobs unfilled or with workers who don’t have enough industry knowledge or experience to be successful.
Many college students are attracted to careers in technology and may not know much about the insurance industry. For this reason, the insurance talent gap may be easier to bridge using online education.
Take a student who wouldn’t voluntarily enroll in a semester-long insurance class. Instead, they might be willing to participate in a soft introduction to the insurance industry online, through technology courses, short seminars, and online presentations. These remote opportunities may allow students and young workers to learn about potential careers in online environments where they feel most comfortable.
There are likely more digital careers in the insurance industry than many would expect. Even small amounts of exposure to the wide range of insurance jobs, such as analytics, AI, and machine learning, could be eye-opening for potential talent.
Online learning could also be a way for older insurance professionals to train new workers. They could be semi-retired and work part-time to earn additional income while passing along skills and experience to the next generation. Highlighting remote training and mentorship opportunities could raise awareness and spark enthusiasm for insurance-related careers.
Online education can create a more diverse workforce.
As long as you have an internet connection or a data plan on a mobile device, you can learn from anywhere. The accessibility of remote learning allows insurance companies to find and hire a diverse group of workers.
The convenience of attending a virtual class, or viewing it offline, reduces the barrier of commuting to a particular location. That means online courses can also save a great deal of time.
Suppose you live far away from a training facility or can’t get to a physical classroom due to a lack of transportation, an irregular work schedule, an injury or disability. In that case, online education can be a lifeline.
Demographic factors such as your age, gender, race or disability status may not be apparent. Instead, the focus is on the educational content and a student’s ability to master the curriculum. Distance education can make it possible to take an insurance-related course, get industry certification, advance your career, or start working in a new field.
Online education gives you more flexibility to improve professional skills and reach your goals. It’s easier to complete certification courses, gain critical knowledge, and achieve development milestones when you can do it remotely and at your pace.
In contrast to traditional classroom education, distance students have the freedom to tackle topics in ways and on schedules that work best for them. You can better meet work and personal commitments while still completing the required or desired education you want. That option could make the difference for parents with young children at home or those caring for ill or aging family members.
Insurance employees who have the opportunity to upskill may be more motivated workers. They’ll know their company cares about their professional development, and lead to more work satisfaction and productivity.
Online education can advance technological insights.
A report from McKinsey & Company, “Insurance 2030: The Impact of AI on the Future of Insurance,” explains that technological advances are likely to bring disruptive changes to the insurance industry. It states that “Although the tectonic shifts in the industry will be tech-focused, addressing them is not the domain of the IT team. Instead, board members and customer-experience teams should invest the time and resources to build a deep understanding of these AI-related technologies.”
E-learning may be the solution to getting less tech-savvy insurance leaders and workers to fully understand the potential of disruptive technology and innovative products. Another McKinsey report notes that, “Reskilling is critical to meeting insurers’ future talent needs because hiring externally for the skills required is costly and difficult. Replacing an employee can cost more than 100% of the role’s annual salary while successful reskilling can cost less than 10% of a role’s salary.
What’s the future of online education?
The surge of remote learning due to the COVID-19 pandemic is likely a change that will become permanent in many fields, especially within the insurance and real estate industries, where timely training is required and essential for success.
Insurance companies that use online education combined with other digital outreach, such as social media, online advertising, and search engine optimization, will reach and recruit a diversified talent pool. Finding workers who can optimize new technologies and integrate them into their core business can be a significant competitive advantage for insurers.
Companies that leverage e-learning to upskill existing employees will have a cost advantage and a motivated workforce. Insurers that improve their talent pool will most likely create a modern user experiences and innovative products.
Laura Adams (laura.adams@aceable.com) is a safety and education analyst at Aceable, a mobile-first education platform for certification and training courses, from driver’s education and defensive driving to real estate pre-license school.
Also by this contributor: