The insurance industry continues to find itself in a talent crisis. The workforce challenges we are facing are not entirely new. Some of them are the lasting impact of the pandemic, while others have come and gone over time as the result of a changing world.
There are some challenges that I believe are self-inflicted, albeit unintentional. The good news is that they are also within the industry’s power to change. It won’t happen overnight, but let’s get started. Since people are the industry’s most valuable asset and are at the heart of everything we do, doing nothing cannot be an option.
People do not want to join the insurance industry
Upcoming or younger members of the workforce do not see a career in insurance. Only 4% of respondents to The Hartford’s 2015 Millennial Leadership Survey found insurance to be appealing. And ACORD’s 2020 survey found even less interest from the generation that will make up 75% of the global workforce by 2025. Keep in mind that only 25% of insurance employees are under the age of 35.
The insurance industry will lose half its workforce between now and 2036 as almost 400,000 employees retire. Most P&C carriers expect to increase staff during the next 12 months while finding most positions challenging to fill and facing more than 10% voluntary turnover. The hiring pool is limited for entry-level and experienced talent, with 65% of people leaving an insurance job also exiting the industry. The leading reason why employees quit is a need for more career development and advancement.
Our call to action
Insurance needs to reclaim its brand in the world. This is above and beyond the hard work that individual carriers, brokers, and agencies do to articulate and reinforce their products, services, and experience. I am referring to an industrywide effort for insurance to take back its voice to tell its own story. Borrowing a page from Simon Sinek’s “Start with Why,” insurance has a noble purpose and a critical reason to exist. We have inadvertently allowed the insurance story to become an amalgamation of carrier advertising, less-than-flattering attorney commercials, and the media’s appetite for only the bad news.
Insurance has a compelling and unique talent story that, if told, can both drive employee engagement and strengthen recruiting. If you’ve not worked within an insurance organization, all you may understand comes from a few insurance interactions and advertising. You wouldn’t have had the exposure to realize there is work that matches any combination of creative, analytical, and technical passions. You wouldn’t have the context of the insurance value proposition to appreciate the motivation that comes with a larger sense of purpose.
A multi-dimensional talent development strategy is critical to build an organization that operates both horizontally and vertically and can adapt to change. Companies need specialists and generalists for strategies and execution to have both a top-down and bottom-up perspective. Career journeys that are co-owned by the employee and employer replace a career path predefined by the company. Flexibility is vital to recognize that vertical and horizontal journeys are not mutually exclusive.
Flexibility is also key because over time the needs of both the organization and its employees evolve. Technology has been driving change within insurance for a long time, requiring the elimination of some roles and the creation of new ones. AI keeps accelerating the rate and pace of change, as seen most recently with generative AI. Companies need to master the selection and transformation of existing employees into new roles that blend business expertise with analytical and technical acumen. Some of the expert talent that is quitting due to lack of a perceived career path, or retiring, could be the strongest candidates for these new positions.
My advice to all employees is to have a goal for their next potential role but also keep their peripheral vision unblocked. Their best next move could be something in a completely different area or perhaps a role that doesn’t even exist yet. I offer that guidance from my own career journey.
The next time someone asks you what you do in the insurance industry, don’t forget to include your “why.” I confess that I paused for a moment the first time I was asked why I chose to become a claims adjuster as my first job after college. Then it all came back to me, along with a great sense of pride and gratitude.
Sample Answer: I've always been interested in helping people and making sure that they are protected. Insurance is a great way to do that. I want to help people understand how insurance works and why it's important to have it. Question: What was your role in your previous job?
The hiring pool is limited for entry-level and experienced talent, with 65% of people leaving an insurance job also exiting the industry. The leading reason why employees quit is a need for more career development and advancement.
Insurance professionals in 2024 must be skilled in building strong relationships, listening actively to customers' needs, and offering innovative solutions. Companies should foster a culture that values customer-centricity and invest in talent development programs that cultivate these essential skills.
The insurance industry in the United States is facing a significant challenge due to a shortage of skilled workers, with projections by the US Bureau of Labor Statistics suggesting that the industry could lose around 400,000 workers through attrition by 2026.
Despite its reputation, insurance offers a variety of rewarding aspects including helping others, job security, engaging work, transferable skills, and the opportunity to connect your career with your passions.
One of the primary reasons insurance agents can accumulate wealth is their commission-based income structure. Unlike salaried employees, agents earn a percentage of the premiums they sell to clients. As they build a client base and generate more sales, their income potential increases.
No Trust in the Insurance Agent or Insurance Company
Some are just paranoid, but others have had past experiences that justify their lack of trust. Whether it has been lack of service from their agent or not being treated fairly on a claim, bad experiences can put a very negative light on the insurance industry.
An Entrepreneurial Spirit. Insurance agents must have the ability to see opportunity, assess risks, and execute on a plan. That requires the development of an entrepreneurial mindset and an instinctive vision of the business landscape.
People like being insurance agents because it allows them to build relationships with clients, provide valuable protection, and earn a competitive income. Additionally, helping clients secure their financial future can be rewarding and fulfilling.
Having a strong work ethic works hand-in-hand with having good customer service skills. Being proactive both when developing new client relationships and maintaining current client relationships is key to a successful career as an insurance agent.
Highlights: Key Facts About Insurance Agents in 2024
On average, 57.9% of first-time insurance exam takers pass the test. Insurance agents make on average $51,936 per year. The average age of an Employed insurance agent is 45.9 years old.
As with many industries, the insurance workforce has been aging. The latest U.S. Bureau of Labor Statistics data show that the median age of the insurance industry workforce is 44 years. Currently, 538,000 employees in the industry are aged 55-64 and 186,000 are 65 and older.
We raise our premium growth estimate to 7.0% for 2024 (from 5.5%) and forecast 4.5% growth in 2025. We forecast industry ROE of 9.5% in 2024 and 10.0% in 2025. Personal lines are the anticipated key driver of growth this year; commercial lines are bifurcated, with strong property growth offset by weak liability growth.
Insurance is a type of contract represented by a policy. It is a contract between the policyholder and the insurance provider. Insurance is a kind of protection from financial loss. It is a form of risk management and is mainly used to hedge against the risk of an uncertain loss.
Example: “I'm definitely a people person! I love talking to people from different backgrounds, finding out about their lives and helping them find solutions to their problems. I was voted Most Outgoing at my last job and small talk is one of my talents.”
Think deeply about the exact question the agent asked, and only provide that specific information. Never admit to fault. Never admit to even being partially at fault. Never admit that you are uninjured.
I am interested in this position because it aligns perfectly with my skills, experiences, and career aspirations. I am excited about the opportunity to contribute my expertise to [Company Name] and make a meaningful impact in [specific area or industry].
Introduction: My name is Greg O'Connell, I am a delightful, colorful, talented, kind, lively, modern, tender person who loves writing and wants to share my knowledge and understanding with you.
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