The Reinsurance Group of America (RGA) has published a new note encouraging insurers to embrace a three-step plan to help the industry navigate the labour shortage expected to hit the industry in the near future.
“The U.S. Bureau of Labor Statistics projects that the insurance industry could lose roughly 400,000 workers through attrition by 2026 in the United States alone. Most of those departures will come through retirement, the data suggests. This is a global trend,” the company states, pointing out that roughly one quarter of workers in Canada, Germany and the United States will be 55 or older by 2031.
“The time is now for insurance companies to change how they think about hiring, retention and technology. Following three basic steps can be effective for insurance companies, no matter their size or global footprint,” they add.
The three steps include smart hiring, smart training and embracing technology.
In hiring, they say companies need to actively seek out the right combination of people to bring into the business. “This means seeing diversity in a different light. The insurance industry is based on properly assessing risk and that cannot be done by a homogenous workforce.” Diversity of thought, experience, backgrounds and viewpoints are all critical to making better decisions, they say. More, they add that top talent “will go where the success is.”
International rotation programs
As for training, they suggest international rotation programs, short-term experience programs and that the company discuss its own internal job board which matches areas of professional interest with related opportunities. “Successful insurance companies will retain top talent by demonstrating their commitment to individual employee growth,” they write.
Finally, they say generative artificial intelligence (AI) is on most leaders’ minds. The note from RGA adds that embracing technology could also attract another generation and set of individuals into the industry.
New jobs with new skill sets
“The exact jobs lost to retirement will not necessarily be filled. Rather, new jobs with new skill sets might be more in demand – data analytics, cybersecurity and digital marketing chief among them,” they state. They conclude, saying greater work-life balance and work-location flexibility will also be key in the future. “Businesses have learned there is value in in-person collaboration, but to attract new workers, the industry needs to adopt a hybrid culture where appropriate.”
