I’ve posted before about the looming talent shortfall in insurance, and specifically how to attract new blood to the claims industry. While I don’t want to belabor the point, it’s an important one to make. An aging workforce, poor recruitment rates and high attrition rate are leading to a critical shortage of insurance agents, not just claims personnel.
The Talent Challenge in Insurance
- An estimated 50 percent of today’s agents will retire in the next 10 years.
- For every two agents that retire in the next few years, there is only one college graduate poised to replace them.
- Accenture research shows that 85 percent of agents leave their jobs within the first two years.
Together, these trends are leading to a serious gap between the available jobs and the qualified people to fill those jobs. In addition to creating a smaller workforce, that gap means that knowledge transfer from seasoned worker and new worker isn’t happening—at least, not to the degree that the industry needs it to.
Human Capital Strategies
One of the biggest barriers is insurer’s attitudes toward technology. Generally, insurance is a conservative industry with regulatory and privacy concerns. This attitude is at odds with how technology is used today, and certainly with how millennials choose to use technology.
To combat the talent shortfall, carriers must innovate and transform their human capital strategies. Accenture sees four key areas of focus:
- Retain the best employees.
- Recruit the most promising prospects.
- Balance tradition with innovation.
- Create structures where talent can thrive.
Learn more with The Point, which examines the looming talent shortage and offers guidance for carriers to recruit and retain high performers.