Insurance must 'change the narrative' to overcome talent shortage
An insurance educator shares two ways companies can shift their focus to introduce new professionals to the industry.
It is a well-known issue that the insurance industry is vastly understaffed. In fact, 53% of property & casualty insurance companies plan to aggressively hire within the next 12 months to close their talent gaps, according to Aon and The Jacobson Group’s Q3 2021 Insurance Labor Market Study. The study also revealed that insurance firms are finding it increasingly difficult to fill open positions across their organizations, from operations and claims to analytics and underwriting.
With an overall U.S. unemployment rate of 4.8% in September 2021, why are job seekers not pursuing these open roles?
Perhaps the main challenge working against insurance recruiters is that today’s talent has little knowledge about the benefits of working in the industry. Insurance companies, however, have the power to change this, according to Teresa Chan, director of the insurance management program at Columbia University’s School of Professionals Studies, by “changing the narrative” to bring fresh talent into the industry.
Diversify thought
Within her program at Columbia, which admits working professionals as students, Chan doesn’t only look for students with insurance backgrounds. She also seeks professionals from other industries who can add value to the insurance ecosystem with their expertise.
“The industry [must commit to] diversifying thought and hiring from other industries,” she notes. “We are poaching from each other because there are not enough people in our industry, so we need to cast a wider net and take a chance by hiring from other industries.”
Introducing fresh expertise to the industry not only helps solve the talent crisis but can also elevate companies’ value when working with specialty lines clientele.
“We want to improve the customer experience. What do salespeople do? They always try to connect with their clients – not just by saying things but by demonstrating that they can connect with them through knowledge. What better way to do that than to bring someone into the industry who was once on the client-side?” Chan explains.
Noting that hiring experienced professionals can come at a cost, Chan believes it’s a worthy investment that doesn’t have to be made overnight.
Consultancy-type roles can serve as a stepping stone for professionals outside of insurance to learn the ins and outs of the business without leaving their day jobs. Brokers and underwriters can also demonstrate greater value to clients by collaborating with consultants on complex specialty accounts.
“I think [consultancy roles] would bring more people into insurance,” Chan says. “Inevitably, as they start working with insurance professionals, they’ll start thinking like one, and eventually, the industry will see professionals crossing over from their industry into insurance.”
Target talent sooner
A Tallo survey of Generation Z students found that only 37.6% are interested in the insurance industry as a career option. For comparison, 78% of students expressed interest in the arts, entertainment & recreation sectors, and 76.5% said they are attracted to technology careers.
In order to reach the next generation of talent, the industry must shift its focus to educating young adults before they enter university or college. “There are so many undergraduate insurance programs today, but how would high schoolers know about those options if the industry doesn’t communicate to younger demographics?” Chan says.
Building awareness in a transparent way is key to resolving the industry’s talent deficit mainly because the general perception of insurance careers is limited to what consumers see on television or magazine ads. Many students don’t realize that insurance provides opportunities in many functions beyond brokering and underwriting, such as human resources, finance and legal.
“Young adults need to understand that insurance is not just homeowners and auto insurance or the warranty on my phone. We are a critical business partner, so we need to put careers in a different perspective for young adults,” she explains. “We in the industry have to do a better job of raising awareness. Part of that is changing how we talk about our work – changing the narrative is extremely important.”
Professionals working in the market today play a critical role in helping the industry make strides toward a better portrayal of insurance careers by sharing their work stories and experiences with others. That includes highlighting factors that characterize insurance employment, such as flexible work arrangements, career stability and advancement opportunities, higher-than-average entry-level salaries, and roles that fit a variety of skillsets.
“Get people interested in insurance – it’s going to take time, but talking about what we do with people outside our industry is one step to building awareness,” Chan concludes.
Heather A. Turner is the former managing editor of ALM’s NU Property & Casualty Group.
Related: