How insurers can appeal to students and Gen Z
Insurance leaders who buy into to generational stereotypes risk bypassing energized, eager-to-learn talent.
Now that a fresh school year is underway, it seems like an opportune time to examine how our industry is connecting with and embracing students and other members of Gen Z.
The truth is, there are still plenty of misconceptions out there from one generation to another.
Many more seasoned workers look to these newcomers and assume they fit certain stereotypes. They see these young people as disconnected, uninterested in face-to-face communication and professionally motivated by jumping from company to company.
Insurance leaders who succumb to generalizations like these run the risk of bypassing energized, eager-to-learn talent who could be the long-term solution to the insurance industry’s ongoing talent problem. Many insurance companies have deployed career building programs, and many educational institutions have adopted insurance-focused courses of study. So much is being done to interest this new generation in the field of insurance. Now, we need to not only find a way to welcome them into our companies but meet them where they want to be met and give them the tools and resources they need to propel our industry into the future.
Get ahead or fall behind
Gen Z, or those born between 1997 and 2012, already make up roughly 30% of the workforce, according to Johns Hopkins University. With the youngest of the Gen Z population only about 11 years old, that number will grow rapidly in the coming years. Strictly from a numbers perspective, legacy industries such as insurance that have depended heavily on previous generations could quickly run into a problem.
It’s not just about the numbers or filling positions that makes engaging with Gen Z a necessity. The insurance industry can also greatly benefit from the incoming generation and their insight on efficiency, technology and of course, the next generation of consumers. With the influx of Gen Z talent comes the next generation of insurance buyers. Gen Z insurance professionals’ understanding of their peers and what they need from insurance is and will continue to be a critical asset for insurance organizations looking to compete.
Attracting the next generation
Insurance organizations have begun to see the value in not only appealing to the younger generation, but in making an investment in their careers. Gamma Iota Sigma (GIS) for example, has seen a stark increase in the number of insurance businesses participating in career fairs and similar events. Additionally, GIS’s number of sustaining partners — organizations which make a long-term financial commitment to GIS and in return receive enhanced access and visibility at GIS events and other opportunities — has experienced 20% year-over-year growth for the past three years.
These advancements are fantastic to see, but how else can insurance companies best harness this talent and prepare these individuals for a fruitful career in insurance and risk management? Organizations looking to attract young talent and take advantage of the fresh skills and insight they bring to the workplace might consider the following best practices:
- Create an open dialogue: To reach the younger generation, insurance organizations need to get in front of them. Events through organizations like GIS offer companies and students common ground to open a dialogue about what students are looking for and how a particular organization could meet those needs. As students continue their educational journeys, they will remember the organizations that took the time to listen to them. At the same time, the insurance organizations will gain a better understanding of students.
- Invest in the long-term: Contrary to popular belief, Gen Z is interested in long-term career opportunities. Their path may simply look a little different. The younger generation recognizes that there is no replacement for real work experience and the support of an invested mentor. But the insurance industry needs to understand that Gen Z is not interested in the traditional, linear insurance career path. Gen Z wants true, continued education throughout their careers. They are interested in knowing how the entire process works for the sake of improving it. As such, it is critical that insurance organizations allow students and young professionals to try different aspects of the business such as underwriting, marketing, actuarial services and more. Gen Z is looking for a diversified experience and they are eager to understand insurance in its entirety.
- Keep a finger on the pulse: Understanding what the incoming generation is looking for as far as aspects of insurance, why they are intrigued by it and of course, what benefits they find important in a job are all important to consider. For example, students have really taken to risk management focused educational programs. The title alone sounds exciting. As a result, many of GIS’s university partners have created risk management programs, certifications, majors and minors. Considerations and effort toward diversity, equity and inclusion (DEI) and environmental, social and governance (ESG) will also continue to be a priority for Gen Z and they will search for a company that has similar values. And finally, Gen Z is also interested in more practical benefits in the workplace. Gone are the days of over-the-top offices with foosball tables and kickback areas. Gen Z would rather trade that in for flexible work hours, meaningful work, salary negotiation and insurance coverage.
The best of both worlds
Gen Z has grown up with technology. They want to use it to their advantage, and they certainly do not fear it. At GIS, we have seen thousands of students free up time in their schedules to attend insurance industry events, immerse themselves in the industry and confidently shake hands with decision makers. Gen Z is looking to create the best of both worlds, where technology makes it easier to focus on growth, innovation and getting to know industry peers and customers alike.
The younger generation knows what they want out of their careers. They crave mentorship and guidance, they want to work hard and have the flexibility to be creative, live their lives and make insurance a stronger industry. As insurance businesses look to solve their talent concerns and bring their organizations into the next generation, decision makers should consider how the next generation of insurance professionals could hold the key with the right support.
Grace Grant is executive director for Gamma Iota Sigma. She has more than 15 years of experience in the financial services industry, including 10 years of insurance industry non-profit leadership. She joined Gamma Iota Sigma in 2013, and championed a significant expansion of the organization’s diversity, equity, and inclusion strategy through the establishment of the Gamma Iota Sigma Foundation.
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