Why technological evolution has the potential to bridge the insurance talent gap

Julian Hucks (pictured), founder & managing director of Starpeak:

After receiving their GCSE and A level results in August, some UK students may be feeling unsure of where to turn next and what their options are for the future. Fewer and fewer young people are choosing to go down the traditional route of A levels and university. Instead, many are deciding to head straight into industry work at an apprenticeship or junior level.

However, despite this shift, only 7% of young people aged 16 to 18 in the UK see insurance as a viable career option. There is a long-standing preconception that working in insurance isn’t ‘attractive’ and 80% of young people report having limited knowledge of the employment opportunities within insurance.

In reality, there’s an array of attractive career options in the insurance sector today – enhanced by new, innovative technologies. As an industry, we have a responsibility to provide better education in this area. With improved understanding, the outdated narrative surrounding insurance careers can be rewritten. The result? More fresh, ambitious talent will be encouraged to pursue careers in the field.   

Addressing the insurance talent shortage is crucial

Research from RSA has shown that around 26% of workers in the UK insurance market are aged over 50. While these people are experienced and talented, they won’t be working forever. As such, it’s important that more young people are encouraged into the sector over the next few years to ensure knowledge transfer and continuity.

As the industry embraces digital transformation, there is also a growing need to hire more tech-savvy professionals. With millennial and Gen Z talent growing up in the digital age, it’s these employees who will be able to drive innovation in areas like data analytics, artificial intelligence, and cybersecurity.

The evolution of insurance careers

Compared to 30 years ago, the roles in the insurance sector have drastically changed. Back then, insurance was primarily sold through face-to-face meetings with agents or brokers, with policies explained using printed brochures and documents. Underwriters also relied heavily on physical paperwork and manual calculations and claims were reported by phone or in person at local offices.

Today, technology-driven processes have transformed these areas – improving efficiency, accuracy, and the ability to offer more personalised services. With the introduction of new technology, a new range of roles have also emerged in the sector. For example, cybersecurity experts, AI and machine learning engineers and insurtech specialists were previously non-existent. Today, these new roles are critical in driving the growth and adaptability of modern insurance providers and making the insurance industry more appealing to the younger generations.

Traditional roles like underwriters and product developers, of course, still exist. However, these employees now also heavily rely on technology and data analytics. Today’s sector requires a more diverse skill set, blending insurance knowledge with technological expertise.

The power of new, technical marketing tools

Another key area of insurance that has been transformed by advancements in technology is marketing. Advertising was once limited to platforms such as print, TV, and radio. But, over time, new tools have enabled integrated marketing across multiple platforms – allowing for targeted online adverts, social media campaigns and search engine marketing.

Not only are these new marketing tools beneficial for reaching customers, but they are also a key component in attracting new talent to the sector. For instance, leveraging platforms like LinkedIn can showcase company culture and job opportunities. Personalised recruitment campaigns can even be created to appeal to specific demographics or skill sets. This new approach to marketing can help to demonstrate the innovation in our sector and illustrate the potential for career development in what is now an evolving, tech-driven industry.

Together, by taking advantage of the tools available, we can nurture a new cohort of insurance professionals and bridge the talent gap. It’s so exciting to think of where the sector could be in the next 30 years thanks to fresh and diverse perspectives, but it’s up to today’s insurance leaders to ensure we get there.

Image: Canva

Josie Miller Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.miller@barkerbrooks.co.uk