The insurance industry is facing a significant talent gap thanks to an increasing retirement wave and a shortage of new hires. Attracting and retaining key talent is the backbone of good service, and while those already in insurance know this is a great field, appealing to a younger audience has its challenges.

“We must think about how we attract the next generation of insurance professionals. They think about work differently than what was the norm in the past, and so we need to consider not only what appeals to them but also what will help them find their footing in insurance,” said Bill Bailey, Senior Vice President – Talent, Learning, Mobility, and HR Analytics for Sompo.

Luckily, there are several ways the industry can work together to bring in top-notch talent, from utilizing new ways to attract a younger generation of workers to developing opportunities for new hires and existing employees to grow in their insurance roles.

Attracting Talent: Positioning Insurance as a Career of Choice

Bill Bailey, Senior Vice President – Talent, Learning, Mobility, and HR Analytics, Sompo

Ask anyone in insurance about how they began their career, and you will likely hear the same story: They either fell into this industry or had a family member already entrenched.

“When I started my career in HR, I never thought that I would have found my way to the insurance industry,” Bailey said.

To engage and attract a more robust and new pool of talent to the industry, Bailey suggests that it might just be time to change the narrative: “We should speak to the work we do as an industry, such as the role we play in enabling innovation and leading positive and lasting change; that’s the hidden secret of insurance: what we do.”

Insurance is ripe with meaningful, purposeful work. When something goes awry and processes are interrupted, insurance steps in to keep operations running. Even on the days when processes are running smoothly, insurance remains a steadfast partner, enabling businesses to thrive.

“There’s purpose to what we do, and we contribute to organizations and keeping the economy flowing. Businesses would not take risks if they didn’t have insurance to provide peace of mind, helping them think outside the box.”

From there, Bailey also suggested that as an industry, we need to broaden beyond looking for prior industry experience, to seeking and identifying the transferable skills we know are crucial for future success within insurance and establish approaches to develop the technical skills, as a means to attract the right talent.

“When it comes to attracting people by their skillsets, we have to start talking about the individual skills: analytical mindsets, people good at collaborating, good at negotiating. We spend more time problem solving and collaborating than some might realize.”

For up-and-coming professionals, these particular skill areas might be an attractive pull toward insurance and risk management. Specialties in different sectors can also be a way for those outside a “typical” insurance path to find a lasting career.

“Construction or electrical or environmental and others, there’s a need for insurance specialists in every sector,” Bailey said.

Retaining Talent: Building Engagement Through Culture and Opportunity

Every career worth pursuing has some degree of continued growth. Offering professionals the opportunity to expand their knowledge goes a long way at retaining them within the insurance space.

Bailey noted establishing early career programs into your operating model tend to be a good place to start. “We have both an underwriting trainee program as well as internship programs,” he shared.

The internship program itself has three main components: Seventy percent of interns’ time is spent working in their specialty, whether that be surety, cyber, property or the like. The remaining time is split between teaching interns how to expand their networks and build relationships. This professional development focus aids new graduates transitioning from school to career.

The final piece is exposing interns to different industry professionals through a speaker series designed to give deeper insight into an insurance career.

Combined, the program is just one way to keep new insurance talent interested and growing within the industry.

Another big component to retaining talent, said Bailey, is also meeting the new generation of workers where they are at. Many young professionals prize flexible work models, while working in-office to establish relationships and being a part of a community, along with wellness initiatives and a work environment committed to inclusivity.

“It goes back to purposeful work,” Bailey said. “Companies are starting to really think about retaining employees through their vision, direction and purpose of “why” they do what they do.”

Developing Talent: Preparing the Workforce for the Future of Insurance

Attracting and retaining talent is just the start when it comes to bridging the talent gap in insurance; industry professionals, both within HR and the business, must implement efforts that will drive lasting change for young professionals. The future of the insurance workforce will stem from continued efforts looking forward.

Technology is a big component of today’s world, and with the advent and widespread implementation of generative AI over the last few years, this is one area where insurance professionals can drive development for their talent.

“It’s important that insurance works to design continuous learning initiatives focusing on technology trends, data-driven decision making, and automation, while ensuring employees continue to build connections with their colleagues,” Bailey said. “We should be looking to integrate hands-on training with emerging tools and platforms that may have an impact on the insurance landscape.”

Getting ahead of burgeoning technology sets insurance talent up for success.

On the other side, developing leaders and leadership training efforts is another key tactic to growing talent for the future. By enabling paths toward leadership roles, not only are young professionals gaining additional skills and experiences, but they are also planning ahead for their careers in the industry.

Talent Retention: The Role of People Managers

Developing people managers is crucial as effective people management directly impacts employee engagement, productivity and overall company success, according to Bailey.

“Another critical element of Sompo’s talent engagement and retention strategy is centered on our people managers. A highly engaged workforce is built on the positive relationships employees have with their managers, making the ongoing development of our people leaders a key focus for us,” Baily explained.

“We achieve this by measuring employee engagement through annual surveys that provide people managers with valuable insights into their effectiveness. Additionally, we engage with our people leaders through comprehensive management training curriculums that focus on developing essential skills in areas such as effective communication, performance management, conflict resolution, delegation, leadership styles, and mentoring and coaching. These initiatives are all aimed at optimizing team performance and enhancing employee engagement.

To further support the relationship between staff and leaders, we also create opportunities for interaction with senior leaders and foster collaboration through learning communities, including our early-career programs. This holistic approach ensures that our people leaders are well-equipped to inspire and motivate their teams, ultimately driving a positive and productive work environment, which encourages connections and knowledge sharing across career generations.”

Grow Your Insurance Career

Talent growth and retention are extremely important to Bailey and his team at Sompo. That’s because the future of the industry will be in the hands of today’s young professionals.

Giving them a space to grow and thrive within insurance is not just a means to bring on talent; it’s a necessity for the industry to continue to provide solutions for today’s biggest risks and tomorrow’s emergent risks.

“We recognize that it’s part of our responsibility to teach new entrants about the industry and get them hooked into what and why we do what we do,” Bailey said.

“By providing opportunities, through early in career or other learning areas, collaborating and growing networks, and then just demonstrating the purposeful work and meaning behind insurance, we will be able to provide young talent with the tools they need to create lasting careers in our industry.”

To learn more, visit: https://www.sompo-intl.com/careers/.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Sompo. The editorial staff of Risk & Insurance had no role in its preparation.