The insurance industry is at a crossroads. Shifting workforce demographics and a rapidly changing consumer base are creating who are at the forefront of this change, understanding these shifts is critical.
The industry faces a significant talent shortage, and the future depends on how well insurance leadership adapts to the evolving needs of the modern insurance workforce.
Below, we offer ideas on how to build the workforce of tomorrow by focusing on mentorship, networking, and strategic programs. We'll also highlight why PIMA is the right community for affinity leaders to navigate this change and help shape the future of the industry.
Why is Talent Development a Growing Priority?
The need for talent development has never been more urgent. The industry is in a two-front battle: experienced professionals are retiring, and it's hard to attract and keep new talent. This creates a knowledge and experience gap that can slow down innovation and customer service. For PIMA members, this is a business challenge that directly impacts the ability to grow and compete.
The industry is losing staff due to return-to-work attrition, where people are retiring or quitting because they don't want to be in the office five days a week. This points to a cultural shift that many traditional insurance companies may not be ready for.
At the same time, there's a growing need for new talent, especially in technology and data science. Companies are seeking to hire people who understand AI and Insurtech, not just those with a traditional insurance background. Many insurance industry players are realizing it's not about replacing staff with technology but rather educating employees to work differently with new tools.
This means your workforce development strategy needs to be proactive. The overall goal is to bridge the generational gap and create an environment where both seasoned experts and digital natives can succeed. As products evolve from simple term-life to complex variable annuities, the workforce needs to be knowledgeable, adaptable, and able to personalize solutions for diverse customers.
The Power of Phased Retirement and Knowledge Transfer
With over half of the current insurance workforce n drain," insurance leadership can start by implementing strategies to capture and preserve the invaluable institutional knowledge held by its most experienced employees.
A well-structured phased succession plan is a powerful solution, allowing employees to gradually transition out of their full-time roles while mentoring the next generation.
Strategies to address this challenge include:
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Formalizing Mentorship: While informal mentoring is common, a structured approach with measurable outcomes, such as through PIMA’s formal mentorship program, ensures that critical skills and tacit knowledge are successfully passed down. This could also include regular sessions with a defined agenda and metrics to track progress.
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Creating Transitional Roles: Rather than a binary "employed/retired" model, companies can create transitional roles, such as part-time consulting or advisory positions. This allows a seasoned employee to gradually reduce their hours while still providing valuable guidance on special projects or for new hires.
What Skills and Leadership Traits are Necessary for the Future?
The future of affinity insurance demands a new kind of leader, one who can bridge generational gaps and use technology to create meaningful connections. This forward-looking leader needs a firm understanding of the unique needs and preferences of different generations.
Key takeaways for leaders include:
Understand Generational Values: Different generations have different values. While Boomers and Gen X value tradition and face-to-face interaction, younger generations, such as Gen Z, are motivated by sustainability, convenience, and social impact. Gen Z, also called “Zoomers," are comfortable with digital communication and are heavily influenced by social media. They are also more willing to share personal data for a personalized experience, a concept that is different for them than it is for older generations.
Adapt Communication Styles: While some employees may prefer in-person meetings, others may prefer digital communication channels. A successful insurance leadership approach will embrace these differences and use a multi-faceted communication strategy that works for everyone. Additionally, they create a workplace culture that values both the experience of seasoned professionals and the ideas of those beginning their careers.
Focus on Lifestyle and Social Impact: The insurance industry can also change its message to attract younger talent, focusing on the lifestyle a career in insurance can offer, such as the ability to travel and work remotely. By showing the industry's role in social causes like climate change and community rebuilding, leaders can attract a generation that wants to make a positive impact. This means messaging to potential employees needs to highlight social impact and the lifestyle a career in insurance can provide.
A successful insurance succession plan approach will embrace these differences and create a multi-faceted communication and development strategy that works for everyone.
What is the Role of Technology in Attracting New Talent?
To compete for the best talent, the insurance industry needs to change its public image. The traditional view of a paper-based, slow-moving industry isn't appealing to younger generations. PIMA members are uniquely positioned to lead this shift by showcasing the innovative side of insurance. A modern workforce development strategy can use technology not just to improve processes but to serve as a key attraction point for new talent.
Here are some innovative approaches to consider:
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Highlight AI and Data: Young professionals are often drawn to fields that use advanced technology. Share how your company uses AI and data to improve processes, personalize products, and analyze risk. Emphasize that the insurance industry is becoming more data-rich and technologically advanced, which is a powerful message for a generation of digital natives.
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Use Gamification: Gamification is an attractive element for new talent. This can be applied to training, onboarding, or even sales goals to make the work more engaging and interactive. This approach taps into a culture of friendly competition and rewards-based learning, making the job more dynamic than a traditional 9-to-5 role.
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Embrace Digital Transformation: Young talent expects a digital-first workplace. Highlight your company's move from "traditional paper-based to a completely digital thing that could be reimagined." This demonstrates a forward-thinking culture that values efficiency and modern tools. When potential employees see that a company is actively innovating, they are more likely to see it as a place where they can grow and thrive.
How Mentorship and Networking Can Help Retain Top Talent
Keeping top talent is about more than just a paycheck. While financial incentives are important, they are often not enough to stop younger employees from leaving for a higher-paying job elsewhere. Instead, an internal cultural shift is needed, one that starts from the top and focuses on employee recognition and development. This is where mentorship, professional development, and networking become crucial, and how PIMA membership can help.
1. Mentorship and Recognition
Mentorship is a powerful tool for retaining talent. Simple, personal gestures, such as a leader taking an employee out for coffee or buying pizza for the team, can make a big difference. These small acts of recognition create a sense of belonging and value. Mentorship also exposes employees to different career paths within the organization.
Beyond informal mentorship, structured rotational programs can be a game-changer. These programs allow employees to gain experience in different areas, helping them build a diverse skill set and find a career path they are passionate about. This can prevent the common "two-year turnover." PIMA members can create and advocate for these programs within their organizations to retain talent or get involved with the broader community through PIMA’s own formal mentorship program.
2. Professional Development
Investing in professional development shows employees that their growth is valued. It’s important to give employees several opportunities to learn about new technologies and skills, especially in emerging fields such as AI and Insurtech. Providing access to training helps employees stay current and feel confident in their ability to adapt to a changing industry. For example, PIMA conferences and digital forums are just some of the many annual learning opportunities that help employees fuel their growth journeys.
Networking is another critical component. Organizations like PIMA provide a community where professionals can connect with peers and leaders who have had diverse career paths. This community is vital for developing the next generation of leaders and creating a sense of shared purpose.
Networking events and conferences provide further valuable opportunities for knowledge sharing and career advancement. The value of this network is immense, as it allows members to move beyond what they already know and gain a "well-rounded perspective" on what works and what doesn't.
How is PIMA Helping Shape the Workforce of Tomorrow?
PIMA is in a unique position to address the talent gap in the insurance industry. By fostering a community where professionals from different generations and backgrounds can connect, PIMA is a leader in workforce development strategy.
This focus on generational differences and product development is a testament to its forward-thinking approach. PIMA brings together experts to discuss how to attract and retain talent and how to create products that resonate with diverse consumers.
PIMA's community offers a platform for important discussions, which cover everything from generational product development to the importance of a positive internal culture. By providing a space for these conversations, PIMA empowers its members to implement new ideas and strategies in their own organizations.
By discussing with industry peers, PIMA members learn tactical, actionable insights they can take back to their businesses. Members can also discover how to create product bundles that appeal to multiple generations at once, or how to market their products through new channels like social media influencers and sports affiliations, which appeal to younger audiences.
PIMA's focus on the lifestyle and positive aspects of an insurance career — such as the ability to work remotely or travel — is crucial for attracting younger talent. By embracing these new approaches, PIMA is helping to modernize the industry's image and make it more appealing to the talent it needs.
Ultimately, PIMA is helping to shape the insurance workforce of tomorrow by promoting a culture of continuous learning, recognizing the value of every generation, and advocating for a human-centered approach to business. By prioritizing people, PIMA and its members are building a better workforce together and securing the future of the entire industry.