Blogs
13th July 2022
In today’s challenging job market, still in the midst of the Great Resignation, every industry is facing recruitment challenges and struggling to attract young talent. But for the insurance sector, these challenges are more acute than most, and they’re nothing new. The lack of new talent means the industry is facing a skills crisis, with an ageing workforce and a lack of young people coming in to replace them. But why are the younger generations not being attracted to the insurance sector? There are a number of reasons for this…
1. The Industry Has an Image Problem.
The insurance industry is seen as old-fashioned and stuffy, and its products are often perceived to be complex and challenging to understand. This is especially true compared to other sectors that have been able to keep up their appeal, such as technology or finance.
2. Young People do not Understand the Industry Very Well.
They don’t know what insurers do, the different roles available in the sector, or how the products work. This is partly due to the fact that there is a lack of awareness and understanding of insurance products in general, but also because the industry has not been very good at communicating its message to young people.
The problem, of course, is that clients for insurance companies are typically much older than the people working in the industry, so it can be difficult to find a way to connect with young people and the market.
3. The Starting Pay and Benefits in the Insurance Sector are Often not as Competitive as in Other Growing Industries
This is a particular problem for entry-level positions, where young people often look for the best possible salary and benefits package. Competitive salaries more commonly arise in finance and technology sectors.
4. There is a Lack of Flexibility in the Insurance Sector
This is both in terms of working hours and working arrangements and seen as a particular issue for young people who value work/life balance and want more control over their working lives.
5. The Insurance Sector is Seen as Being Very Risk-Averse and Slow to Embrace Change and Innovation.
This can be a turn-off for young people who are looking for industries that are more dynamic and innovative. The industry has been slow to embrace change, making it less attractive to young people looking for an employer willing to take risks and try new things.
6. Many Insurance Positions Request Previous Experience.
This is a particular problem for entry-level positions, where young people are often just starting in their careers and don’t have the required experience. The insurance sector is not very well known for its investment in training and development.
Still, a lack of experience in new hires can be counteracted by taking the time to invest in mentoring and development programmes.
If the industry is to attract more young talent, it needs to address these issues and make itself more appealing to young people.
In fact, a study by ACORD found that although millennials, born between 1981 and 1997, are forecasted to make up 75% of the global workforce by 2025, less than 4% of them would consider working in insurance.
By failing to attract young talent, the insurance sector is missing out on a massive pool of potential employees that come with an impressive range of skills and perspectives.
The younger generations have grown up in the digital era and are often more comfortable with technology than their older counterparts.
They are also more likely to be global citizens, with a better understanding of different cultures and how to work with people from all over the world.
And lastly, they tend to be more adaptable, as they have grown up in a time of great change and uncertainty
All of these factors make them an ideal addition to any workforce, but particularly in the insurance sector, which is in need of modernisation.
Today, 80% of insurers aspire to attract talent under the age of 30, but over half of them struggle to do so. Ultimately, if the insurance industry wants to attract more young talent, it needs to make some changes to the way it operates. It needs to be more flexible, innovative, and open to change.
Investment in training and development is essential, so that young people can learn the skills they need to be successful in the industry. Furthermore, the industry needs to do a better job of communicating its message to young people so that they understand the career and growth opportunities that the insurance sector can offer them.
By making these changes, the insurance sector can position itself as an attractive option for young people and ensure that it has the talent it needs to thrive in the future.
If you would like to find out more about Young People In Insurance, don’t forget to register your attendance for our Networking Event on Thursday 28th July, 4-7pm. Join the discussion with our industry expert panelists to discover how opportunities for young people have changed over the years and what employers can do to attract younger talent.
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