How the war for talent is impacting the insurance industry

August 18, 2022 12:53 PM

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In the wake of the post-pandemic "Great Resignation," recruiting and retaining top talent has become a major challenge for insurance companies as they look to advance their digital transformation initiatives.

Among the potential solutions are developing a digital-first culture, implementing Cloud 2.0 technology and adopting hybrid working arrangements for employees.

Read more about these developments and how the insurance industry is responding to the competition for talent in our roundup.

Insurers lead with culture in taking on the talent challenge

Filling open positions and improving employee retention are two major concerns facing insurance carriers, which industry professionals on "The Talent Challenge" panel discussed at the DIGIN 2022 conference.

As the drive towards the digital transformation of the industry falters in the wake of the "Great Resignation," insurance professionals, insurtech startup leaders and software developers gathered together in three panel sessions to explore potential solutions.

Among the insights they shared on how to advance the digital agenda was the importance of developing a digital-first culture and creating the right environment to help empower employees.

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Insurers lead with culture in taking on the talent challenge

Akio Kon/Bloomberg

Cloud may be the answer to insurers’ IT talent shortage, study

The solution to the insurance industry's challenges when it comes to attracting and retaining top IT talent may lie in implementing Cloud 2.0 technology, said a recent survey of more than 1,400 IT leaders in the insurance and finance industries.

In the Rackspace Technology study, 51% of insurance IT executives reported that a lack of talented IT professionals is a significant problem for their businesses. However, digital tech could alleviate the issue via the accelerated and improved digital processes offered by Cloud 2.0 technology.

Jeff DeVerter, chief technology officer at Rackspace Technology, believes that to find the right IT staff, insurers need to appeal to talented employees with technology like the cloud. "Digitalization results in improved, accelerated and streamlined processes that will attract IT talent," said DeVerter.

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Cloud may be the answer to insurers' IT talent shortage, study

Poland Raises Interest Rates in Ninth Consecutive Hike to Curb Surging Prices

Bartek Sadowski/Bloomberg

Insurance vendors upping their game as competition for talent heats up

Insurance technology/software vendors and service solutions providers are utilizing new ways to attract and retain talent in the face of a current highly competitive job market, according to a recently published research report.

The survey by insurance industry strategic advisory firm SMA revealed that 60% of vendors have been tapping into broader geographic regions to find new talent in the past two years, while 40% are using social media as a recruitment tool.

In light of the ongoing competition in the market, insurance vendors are working hard to develop effective recruitment strategies to stay ahead of their peers.

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Insurance vendors upping their game as competition for talent heats up

What insurance outsourcing trends to watch for

Outsourcing in the insurance industry is big business and growing. From 2017 to 2020, the amount spent on insurance outsourcing rose by ten times to a projected $220 billion.

Outsourcing has also gone from an opportunity to increase efficiencies and lower costs to a necessity for insurance companies who are unable to hire the staff they need in front-, middle- and back-office roles.

This shortage of available talent means that insurers are finding new ways to hire employees, such as partner networks, "star platforms" and third-party talent platforms, among other outsourcing trends that are driving the search for talent in the industry.

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What insurance outsourcing trends to watch for

Technology, analytics, claims staff to grow, study

Insurance companies are desperate to hire new staff due to an increase in business volume, according to the latest Insurance Labor Market Study, which surveys small, medium and large life and health insurers, property and casualty insurers and reinsurers on recruitment trends in the industry.

While 72% of insurers intend to add staff in the next year, companies also responded that they expect most positions to be difficult to fill, particularly technology, actuarial and analytics positions.

"Technology is the area most likely to increase staff for large companies, followed by underwriting and analytics," the study states. "Medium-sized companies are looking toward technology then analytics in the next 12 months. After technology, small companies have the greatest need in claims."

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Technology, analytics, claims staff to grow, study

The case for insurance agents to adopt hybrid work

Hybrid working arrangements and remote work options are key bargaining chips that can have a crucial impact on recruitment and retention in the insurance industry, according to recent research.

An Accenture study revealed that 83% of workers prefer hybrid work arrangements, while a Bloomberg survey found that nearly half of millennial and Gen Z workers would consider quitting their job if their employer did not have a flexible attitude toward working from home.

"We are looking for talent," wrote an agency leader in California. "It is tough to find. The pandemic taught us that we don't all need to be under one roof." By offering hybrid and remote work, agencies can gain access to a wider pool of talent and more effectively attract and retain top industry talent.

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The case for insurance agents to adopt hybrid work