(NU Property Casualty 360) - The next insurance workforce could truly revolutionize the industry — with the right people. In a recent Vertafore survey of more than 1,000 insurance professionals, findings revealed a strong demand for the insurance industry to get creative in addressing a workforce shortage growing over the coming years.
Innovative solutions, diversity and workplace benefits are among the areas needed to help build a modern workforce. The best contender to make this happen is job market newcomers Gen Z. This group of fresh faces has what the industry wants, and needs, to survive.
Gen Z is the generation born behind millennials. They are the prime audience to recruit the next working generation of insurance professionals; these young job seekers just don’t know it yet.
According to a recent Glassdoor study, Gen Zers are scouring the job market for opportunities in the digital and technology fields. While vying for the attention of big-name tech employers, younger job seekers are missing out on the same prospective opportunities with less competition at insurance agencies.
The good news is that insurance is already well-positioned to embrace change and attract young talent. The challenge: Gen Zers don’t know what insurance has in store. Based on Vertafore survey findings, there are four areas of the insurance industry that could amplify attraction for future Gen Z recruits:
No. 1: Modernizing the agency
As the generation that was handed an iPad before they could talk, Gen Zers are the tech gurus the industry needs at a time when insurance professionals are modernizing agencies more than ever before. Insurtech has become a staple in the industry’s future with more tools eliminating repetitive tasks, accelerating workflows, improving customer experiences and enabling experts to better analyze and interpret client needs.
The age of insurance technology is not slowing down any time soon. An ample workforce with a digital second nature is exactly the boost the industry needs to keep momentum behind modernizing the agency. Gen Zers expect to use their tech skills on the job as they see the value in technological advances, making the chance to work at the forefront of industry evolution much more appealing.
No. 2: Aspiring to diversity
You’ve heard it before: More diversity is needed in the insurance workforce. In 2018, consultancy firm McKinsey & Company found 45% of entry-level insurance roles and 18% of the C-suite were taken by white women. The same study showed only 12% of entry-level positions and 3% of leadership roles were held by women of color. And since the pandemic started, women have left the workforce in droves.
Insurance companies and industry institutions such as the National Association for Advancement of Women in Insurance (NAAWI) are making it a priority to invest in diversity, equity and inclusion (DEI) initiatives to hire more women and younger talent from diverse backgrounds, including communities of color and LGBTQ. These efforts will not only better the industry, but they’ll go a long way with younger job seekers.
No. 3: Enticing benefits & flexibility
Talent acquisition provider Yello reported work/life balance to be the second most important factor Gen Zers consider when accepting a job, following closely behind salary. Luckily, the insurance life is already on the side of a healthy work/life balance with flexible hours and fluid remote work. The majority of respondents (70%) in Vertafore’s survey say they had the tools necessary to work from home and want to keep working remotely in some capacity. In fact, only 15% of respondents want to return to the office full-time, demonstrating the insurance industry remains on track to keep a hybrid and/or remote work style that younger job seekers are looking for.
No. 4: Increasing job availability
The age gap in the industry has been a problem for years, but the upside is seen in job availability and lack of competition. While a large portion of job seekers are keeping tabs on tech giants in Silicon Valley, there are more career opportunities for those looking to join the ranks of insurance.
Going after Gen Z
There’s a lot of untapped potential waiting for the insurance industry to bring in Gen Z, and big tech companies deserve a run for their money. Additional Vertafore survey data shows insurance is right in the middle of Gen Z-preferred industries to work in — all they need is a push from the professionals. With 90% of insurance professionals over the age of 40 saying they would recommend a career in insurance, forming the next workforce should be a breeze. The insurance industry just needs to realize what’s right in front of them and go after it.
By Kristin Nease
November 02, 2021
Kristin Nease (is vice president of human resources at Vertafore.
