How to hire the next generation of P&C professionals
Companies can attract new talent for the next generation by focusing on compensation, flexibility and technology.
The U.S. Bureau of Labor Statistics forecasts that over the next 15 years, 50% of the current insurance workforce will retire, leaving more than 400,000 open positions unfilled. With less than 25% of the industry currently under the age of 35, the talent shortage is imminent. Rather than looking at the negative effects this could have, the industry has the potential to transform, especially in the property & casualty sector.
How can employers fill these positions with the next generation of insurance professionals? Further, what does the next generation want from their employer?
Many enter the insurance industry because family or friends are successful in the industry. The value of companies networking and building relationships with younger professionals as they embark on their career path is increasingly important. Young professionals entering the workforce (or with under five years’ experience) are looking for long-term growth opportunities and are hyper-focused on benefits as they move up within a company. Companies can attract new talent for the next generation by focusing on compensation, flexibility and technology.
Compensation
Most interesting in the current hiring landscape is candidates’ expectations for compensation. More than ever, one of the first questions potential candidates ask is about 401K matches and parental leave or health insurance benefits. Ultimately, candidates are looking for stability and a company that can offer long-term growth.
A recent survey found 67% of Gen Z respondents ranked spending time with family and friends as a top life ambition, outweighing career goals. To attract the younger generation, a focus on ‘lifestyle reimbursements’ for extracurricular activities like gym memberships or streaming services is something to consider. Younger candidates are looking for work-life balance, and newer ‘lifestyle’ benefits make for an attractive option. Employers need to adjust compensation and benefits to attract the next generation of talent as work-life balance continues to be a non-negotiable.
For more experienced candidates looking to move to a new company, long-term incentives like stock options or equity are crucial for companies to offer as part of a compensation package. Additionally, for actuaries specifically, the expectation that exams and the associated fees and time to take them are accounted for is increasingly important for candidates.
Companies must be flexible
The great ‘Return To Office’ debate is one that continues to be part of hiring trend conversations. There are many arguments to be made for fully remote, fully in-office and hybrid situations. However, for entry-level employees, time in the office with co-workers is extremely valuable to learn from those with more experience and to collaborate. Recent data from Live Data Technologies showed that of employees working full time in an office or on a hybrid basis, 5.6% received promotions at their organization in 2023 versus 3.9% of those who worked remotely.
Where it becomes a challenge for hiring is when a candidate is required to be in the office five days a week, or even a hybrid situation, in locations that are, in their eyes, less desirable. Since there are many benefits to working in office, such as professional development, a sense of belonging, increased networking opportunities and more, companies that are requiring candidates to be in office should communicate these benefits during the hiring process. To further entice candidates in these situations, compensation must also be considered, as well as the relocation package.
Evolving with technology trends
In the year 2024, it’s nearly impossible to have a discussion around workplace trends without including a mention of machine learning and AI. In the case of the property & casualty insurance sector, candidates with coding skills and the ability to learn predictive modeling tools are at the top of the list for companies when it comes to hiring. Candidates who not only understand the current technology, but can adapt and implement new technology as it evolves will further push the insurance industry forward. The next generation is more attracted to roles that involve emerging technologies, and are looking for companies that are embracing evolving tech tools to further their potential career growth.
No, AI and machine learning are not going to take over. But as insurance companies further integrate technology tools throughout the company to increase efficiency, using predictive modeling to analyze data to uncover trends within the industry, for example, will optimize operations and the reality is that the projected 400,000 open positions won’t all need to be filled.
Emerging technology like machine learning and data science will play a key role in many traditional insurance positions. But while technological skills are increasingly important, soft skills such as professionalism and communication have taken on a new level of significance. As digital tools continue to infiltrate industries like P&C insurance and make it easy for a client to quickly get an estimate, for example, the need for the human side of the business is even more apparent. As the world continues to work remotely, the ability to effectively communicate cannot be overlooked.
Looking ahead
As the insurance industry continues to evolve, tactics for attracting the next generation of candidates will continue to shift. Attracting new talent is no longer limited to a small pool of candidates; finding those with a background in data science, business or even marketing have the potential to enter the insurance industry. By considering candidates with transferable skills and including upskilling as part of onboarding efforts, companies can invest in candidates that have long-term growth potential with the company. Expanding recruiting efforts to these and similar industries also allows for companies to onboard new team members that bring various perspectives, experiences and out-of-the-box thinking to a company, benefiting the wider team and industry.
The impact of the pending talent shortage will be determined by the industry’s ability to listen and adapt to the next generation’s needs. These ‘requirements’ can be addressed by considering changes to a company’s compensation packages, technology integration and learning, professional development opportunities are more. By expanding the talent search and adjusting these benefits to meet prospective employees where they are, employers have the potential to hire the next best generation of P&C professionals.
As Executive Director and Head of Insurance for Selby Jennings, Taylor Carrasco leads a team of consultants specializing in the P&C insurance industry. Her team works to place top talent across North America in actuarial, underwriting, product management, claims and catastrophe risk roles. Taylor holds a BSBA degree in Risk Management and Insurance from the Darla Moore School of Business at the University of South Carolina.
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