The insurance industry will lose half of its workforce between now and 2036, as nearly 400,000 employees will retire. Most general insurance companies expect to increase their workforce in the next 12 months, but they find that most positions are difficult to fill and face voluntary turnover of more than 10%. The number of people hired is limited both for experienced people and beginners, since 65% of people who leave a job in the insurance sector also leave the sector. The main reason employees resign is the need for further professional development and advancement.
This demographic trend presents a potential talent crisis in the insurance industry. Nearly 400,000 employees are expected to retire from the insurance industry in the coming years, according to the U.S. UU. In addition, millennials may also have less experience with insurance because many of them are delaying buying a home or even a car, two items that are very important to insure.
As a result, they may not be in sync with the changing landscape of the insurance industry, which is experiencing an upward trend in the adaptation of advanced technology and social media. So what does this mean and what can help reverse this trend? It all starts with understanding the next generation. As we discussed in our previous blog post about millennials and the insurance industry, people born between 1981 and 1996 are often characterized by greater use and familiarity with communications, media and digital technologies. When it comes to a generation characterized by advanced technology that is advancing at a rapid pace, the insurance industry will need to consider how it might need to adapt to connect with millennials. Millennials came of age during the rise of the Internet.
The post-millennial generation, which includes many college students and those graduating from high school, is growing up in an era of constant connectivity and communication, without ever having known a time when Wi-Fi didn't exist. Emphasizing technology and innovation can attract a younger generation to the insurance industry. For example, many insurance companies now offer most of their services through mobile apps. Insurance agents use these apps to offer customers the ability to file claims, schedule inspections, track their claims process, send direct messages to an agent if they have questions, or even send videos for evaluation. Promoting the use of technology seems to be a way to attract the younger generation, perhaps through the use of social media tools.
This brings us to the next topic: social networks can help small businesses and insurance agents to connect in a very impactful way, positioning their position in the insurance field. They can also be a means of attracting the next wave of insurance talent. According to Vertafore, millennials are more than twice as likely as other generations to be recruited through social media. Job fairs, such as those held at universities to seek new talent among graduating students, are rapidly becoming an outdated hiring tactic.
Considering that most millennials are believed to interact with organizations online, especially through social media, it makes sense to take advantage of the opportunity to recruit in the same way. Both the increasing use of technology and social networks show the continuous change in the way in which insurance businesses will be managed, as well as the contracting techniques used to increase the workforce in the insurance sector. Attracting younger people to the insurance sector is more important today than ever, as the sector is expected to lose approximately 400,000 workers in 2036 due to desertion. When people leave the insurance workforce for retirement or other reasons, the industry loses more than just personnel.
What accompanies these experts is institutional knowledge and experience. The insurance industry, like many industries, is desperate to find good, hard-working talent. However, college students don't initially turn to insurance when charting their trajectories. professionals.
And the industry has long been marred by a negative image that, according to Wells, had not been taken seriously until recently. The property insurance industry is currently faced with the challenge of filling the gaps left open by all baby-boomers who leave and will leave the insurance industry in the coming years. There is a common saying in the insurance industry that no one decides to work in the insurance sector, but instead ends up in the insurance sector due to random circumstances. Property insurance companies can make a difference by providing their employees and the industry with insurance technology (insurtech) that takes advantage of artificial intelligence (AI)).
The impact of the Great Waiver may have diminished in the property insurance industry, but competition for qualified employees remains a major concern, as property insurance companies continue to strive to cover gaps and anticipate losses. Social media can help small businesses and insurance agents connect in a very impactful way, positioning their position in the insurance field. If you haven't worked in an insurance organization, the only thing you can understand comes from some insurance-related interactions and advertisements. Specialized knowledge in insurance laws, compliance frameworks and risk management practices, together with an understanding of data strategy, are crucial for functions such as insurance underwriting and claims adjustment.
Videos that show the daily lives of insurance professionals, the results of their work for policyholders, their professional evolution in the insurance sector and even the use of influential people in the sector can attract potential employees and help them understand the impact of this work. According to a Vertafore study that evaluated the state of the insurance agencies' workforce over the past four years, the most frequently cited reasons are those related to work-life balance and compensation.
