How insurers are working strategically to recruit Gen Z

February 13, 2024 2:10 PM

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Insurance industry professionals are getting older. U.S. Bureau of Labor Statistics (BLS) research shows that in the last decade the number of workers aged 55 and older has grown by 74%, while 50% of the current workforce is set to retire in the next 15 years.

The need to make up the resulting shortfall of more than 400,000 positions has increased the pressure on insurance companies to redouble their efforts to attract and recruit new employees from Gen Z.

Below are five stories that delve into what insurers are doing to fill the coming void with a new cohort of young talent.

Naeche Vincent, a 24-year-old analyst, in New York holds a phone up.

A career in insurance grows more attractive for young people

The prospect of working in the insurance industry is becoming more enticing to Gen Z, with 11% more students planning to study the subject in 2023 than in 2022, according to research by insurance and risk management collegiate talent organization Gamma Iota Sigma.

"The fact that this industry is multifaceted and that they can turn a hobby into a career, or that they can pursue multiple different careers within the same company or field, is very appealing to this next generation," said Grace Grant, executive director at GIS.

Additional findings on what is drawing Gen Z to the industry include the range of opportunities, the earning potential and the long-term stability, which may help insurance companies tailor their recruitment strategies more effectively.

Read more:

How does Gen Z view insurance?

Insurers seek new ways to tackle next-gen recruitment

Recruiting and retaining new talent is a challenge for insurance companies, particularly with an employee base that is getting older. However, research shows that there is a growing interest in the profession among young people which insurers are looking to capitalize on.

"One way to combat an aging workforce is that we not only want to make sure that we're hiring early career [individuals], but we want to make sure we're transferring a lot of that knowledge from those individuals that are choosing their next path," said Carrie Martinelli, vice president of talent at Selective.

Digital Insurance spoke with a number of industry insiders to find out how insurers are approaching the task of bringing the next generation of insurance professionals on board.

Read more:

What are insurers doing to attract Gen Z?

Tech-first mindset could benefit both Gen Z and insurers

Remote and hybrid work along with digitization that offers flexible tools and modern communication platforms are top of the list when it comes to attracting new employees and in particular Gen Z talent, according to John Swigart, co-founder and CEO of Pie Insurance.

"Gen Z values technologies like AI-driven tools, collaboration software and learning and development platforms that give them opportunities to grow their skill sets," said Swigart. They also prize companies "with a long-term digitization strategy, where technology is thoughtfully utilized."

A focus on technology could cut both ways, as the undoubted attractions of technology for Gen Z could simultaneously benefit insurers themselves by bringing a "technology first mindset" to an industry that is traditionally manual and typically slow to embrace change.

Read more:

Can insurers use tech to attract Gen Z?

Carriers focus on diversity to create talent pipeline

The insurance industry is known for being somewhat outmoded in its traditional practices. Its workforce is also behind the curve when it comes to inclusivity and diversity, something which the industry is working hard to change to broaden its appeal to the next generation of employees.

"Founded over 200 years ago and predominantly led by white males" is how Carla Lynch, talent acquisition manager at Arbella Insurance describes it. "That is still the case with a lot of organizations, but there also has been a strong evolution. The insurance industry is due for a change in that image."

Partnering collaboratively with colleges and universities on educational programs, and developing internship opportunities are among the ways carriers are seeking to build a more diverse and inclusive talent pipeline for young people.

Read more:

Addressing diversity disparities in insurance with Gen Z

Insurers go back to school to recruit young talent

The clock is ticking on the insurance industry's aging workforce, but carriers are responding to the need to attract Gen Z employees by partnering with colleges and universities to offer young people hands-on internships and mentoring programs to see what the profession offers.

"By engaging with the early career [individuals] and most certainly by hiring interns and trainees, and giving them opportunities to engage with those individuals that are more experienced will benefit us and anyone in the insurance space," said Carrie Martinelli, vice president of talent at Selective.

Selective offers an 11-week internship program for college and university students, while Northwestern Mutual donated $50,000 to Coppin State University to establish an insurance learning lab, partnerships which could prove very fruitful for insurers.

Read more:

Recruiting Gen Z through education and internships