WHY IS THERE CURRENTLY A TALENT GAP IN THE INSURANCE INDUSTRY?  Prior to the COVID-19 pandemic, the industry was aware that there would be a potential talent void in 5-10 years due to the upcoming “Retirement Tsunami.” While the industry was trying to attract new talent, the pandemic occurred, and it exacerbated the situation. Many insurance professionals who originally planned to retire in 5 years decided to retire sooner post-COVID. Other insurance professionals who were not at retirement age reassessed their priorities, such as childcare, working from home, long commutes, and family obligations, and decided to seek other employment opportunities. This became known as “The Great Resignation.” The other factor contributing to the gap is that there isn’t enough exposure to the insurance industry. There are several misconceptions about working in insurance, such as “being boring,” “must wear a suit and tie to work,” and “working in big buildings,” that have contributed to the lukewarm interest among college students. Many upcoming college graduates are unaware of all the different facets of our industry and of the several opportunities that exist.

HOW CAN COMPANIES ATTRACT THE NEXT GENERATION OF INSURANCE PROFESSIONALS? There are several things that can be done to change the narrative about insurance. There are a number of organizations and associations within the industry that are trying to expose more of the younger generations to insurance. Reach out to high schools and colleges within your community, and tell them about your job and what you love about it. Look for opportunities to network with young professionals, such as YRP (Young Risk Professionals) or RISE (Rising Insurance Star Executives), and ask to be a guest speaker. It is crucial to become a champion for your industry and to constantly promote how the insurance industry is not just a job in the financial sector but a career that has meaning and purpose.

OTHER FACTORS TO CONSIDER WHEN RECRUITING: If your company is actively reaching out to students but continues to struggle with recruiting, check to make sure that the salary being offered is competitive. Sometimes adding an extra $3K to a salary can make a huge difference in garnering interest from potential candidates. The other thing to consider is the job description; is it time to call it something else? Candidates may shy away from a job description labeled “Operations Representative” but may be really interested in the same job description if it’s called “Insurance Associate.”  

CAN A STUDENT WHO DOESN’T HAVE A DEGREE IN RISK MANAGEMENT OR INSURANCE BECOME AN INSURANCE PROFESSIONAL? The good news is that most students possess the skill sets that can be utilized in this industry. There are several degrees that can be applied to insurance. For example, if a student has a degree in Marine Biology, they could work in Marine Insurance and utilize their skills. Students who possess empathy, organization, presentation skills, and good communication skills can find a place within the insurance industry.

RECRUITING TALENT IS CHALLENGING, BUT RETAINING TALENT IS EVEN MORE CHALLENGING:  It takes about a year to train, grow, and develop new employees in the insurance industry. There is so much to learn in this highly regulated industry, but it is not uncommon that younger employees will leave about one to two years after they are hired. There are several reasons they may leave, such as wanting to further their career, frustration due to not receiving a bonus, or they feel disengaged. If your company is constantly losing people every one to two years, it may be time to do a “culture audit” and pinpoint what the issues are. It is crucial to identify your high performers and have discussions with them about their future goals and needs. If you are unable to promote them immediately due to business constraints, find other ways to keep them engaged. Provide them with new projects that are outside the scope of their normal day-to-day responsibilities, or invite them to meetings with customers. If employees start to feel stagnant, frustrated, or unappreciated, they will leave the company. Once they leave the company, employers are back to square one, trying to recruit talent again. Sometimes small incremental changes, like buying lunch for employees on Fridays, can be the difference maker between employee retention and employee resignation.

THIS IS AN EXCITING TIME IN THE INSURANCE INDUSTRY: While it may be challenging to fill the talent gap in our industry, it is also a very exciting time right now. This is a wonderful time for upcoming graduates to find a very rewarding career path. The insurance industry has several opportunities for people who want to feel a sense of community and who want to make a difference. The challenges in attracting and retaining talent are bringing new changes to the industry, which is a very positive thing.  Recruiting and developing talent may take a lot of time, energy, resources, and finances, but the next generation of insurance professionals are definitely worth it. If you are a college student looking for an exciting career path or an employer needing staffing, check out Questpro at www.questpro.com.