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Affinity-focused community groups, such as PIMA, offer mentorship, networking, and education to support long-term retention.
The insurance industry stands at a pivotal moment. A significant portion of the workforce is nearing retirement, creating a large-scale insurance talent shortage. However, this challenge is also an incredible opportunity to build a dynamic, inclusive, and forward-looking industry by engaging the new generation of professionals entering the workforce.
PIMA acts as a central hub for the affinity insurance community, providing a space for leaders to connect, learn, and develop solutions. A recent PIMA panel discussion explored generational differences in product development and marketing, yielding powerful insights into how the industry can evolve to attract and retain top talent.
Drawing from that discussion, here is an in-depth look at the forces shaping the workforce and strategies for bridging the talent gap.
Understanding the New Workforce Dynamic
Hiring in the insurance industry is becoming more complex. A primary factor is the wave of retirements, which necessitates an influx of new, skilled professionals. This challenge is compounded by persistent industry turnover, with some reports showing that 12 to 15% of new hires still leave the field. For organizations, this represents a costly drain of institutional knowledge and invested capital.
Externally, the industry faces stiff competition from the highly attractive, tech-driven sector. Furthermore, the insurance field often contends with a challenging public reputation, which one PIMA panelist described as "a cloud that hangs over all of us." This perception can make it difficult to engage younger professionals.
For example, younger generations often view traditional insurance products with skepticism, particularly in the wake of high-profile events like natural disasters. This highlights the industry's need for a fundamental shift in how it communicates its value and acknowledges the ripple effect of negative news.
Strategies for Attracting and Retaining New Professionals
To successfully bridge the talent gap, the insurance industry can pivot its approach to resonate with the values of younger professionals. Unlike previous generations who may have valued a trustworthy brand name passed down through family, Gen Z and Millennials are less accustomed to brand loyalty. They conduct their own research, often guided by social media reviews and a company’s demonstrated commitment to social good.
Younger professionals are looking for more than just a competitive salary. Top talent is attracted to organizations that exemplify:
Today’s professionals seek meaning in their work and want to contribute to the greater good. They look for companies that have a positive social impact and a genuine commitment to ESG (Environmental, Social, and Governance) goals. For instance, an insurance company can demonstrate social impact by leading the charge through how they underwrite policies, choosing to support sustainable or resilient practices. Showcasing these real-world contributions can be a powerful recruitment tool.
The allure of cutting-edge technology such as AI, data analytics, and the shift from paper-based processes to digital platforms can be a strong draw. The industry can attract tech-savvy talent by showcasing how these tools are used to innovate, automate, and create sophisticated solutions. This shift means that jobs now exist that are far more interesting and dynamic than traditional insurance roles, a point that’s necessary to be effectively communicated to prospective hires.
The PIMA discussion underscored the critical importance of a supportive and flexible work environment. This includes offering flexible work arrangements and implementing a top-down cultural shift focused on investing in and mentoring new talent. As one panelist shared, offering rotational programs that allow new employees to explore different roles without career risk is an excellent retention strategy. This kind of internal support is crucial for long-term engagement.
Affinity Groups as Career Catalysts
Affinity-focused community groups, like PIMA, are a vital part of the solution to the insurance talent gap. They function as “career catalysts” that foster a supportive, collaborative community for professionals in the affinity market.
These groups help new professionals navigate the industry by providing a sense of belonging, which is especially critical for non-traditional hires, those from diverse backgrounds, or individuals re-entering the workforce.
PIMA provides unique benefits to build a stronger affinity market:
1. Mentorship and Networking Opportunities
PIMA brings together professionals from all stages of their careers, creating natural opportunities for meaningful mentorship. A key resource is PIMA’s formal mentorship program, which pairs emerging professionals with experienced leaders for dedicated guidance. This helps pass on institutional knowledge and provides the crucial support system that can help reduce high turnover rates. The exposure and support facilitated by PIMA can be the difference between a new hire leaving after two years and becoming a long-term leader.
2. Education and Collaboration
PIMA’s platform serves as a space for continuous learning and skill-building. The panel discussion itself is an example of this, where members share insights on navigating complex challenges, such as attracting new talent. Even InsurTech companies are now investing in insurance education for their non-insurance employees, and PIMA provides a space for this essential cross-industry education to happen among peers.
3. Inclusive Pathways to Success
PIMA embraces the varied pathways professionals take into the industry, from InsurTech founders to experienced agents. As one speaker noted, some of their best agents come from outside the industry, bringing skills developed in fields like hospitality. This inclusive mindset ensures that every voice and background is valued, helping to attract and retain a more diverse and innovative pool of talent.
As a professional association, PIMA is a key resource for the industry’s evolution. By facilitating crucial discussions, hosting events, and providing a platform for connection, PIMA helps its community develop and implement innovative solutions. The increasing presence of new members who bring fresh perspectives on technology and talent shows PIMA's commitment to a forward-looking approach.
Published on November 17, 2025.
PIMA® (Professional Insurance Marketing Association®) is a member-driven trade association focused exclusively on the affinity market.
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