Given the coming shortfall and the fact that the P&C insurance industry will have a hard time competing with more "glamorous" industries for experts in analytics and other high-demand areas, we see four steps that P&C insurers—acting on their own or through industry associations—should undertake immediately to address this problem:

Influence universities to add business analytics and insurance coursework to a wide variety of programs. By incorporating more statistics training within non-quantitative programs or business training within "traditional" science and engineering programs, colleges and universities will be able to generate more graduates with the skills needed for insurance.
Get the most out of existing talent. Companies can do much more to better utilize the advanced and specialized skills of analytics scientists and other technology specialists. They can create development opportunities for analytics experts. They can provide training for employees with strong quantitative skills who are not working in analytics roles, preparing them to take on the responsibilities of analytics specialists.
Raise insurance awareness among students. Only a small percentage of qualified graduates take P&C insurance jobs today; the rest go into other fields such as investment banking, consulting, software development, or academia. These choices are often shaped by a lack of awareness of the opportunities in insurance. Employers should work more closely with universities to make students aware of the career prospects within the industry.
Make sure insurance jobs are appealing to prospective students. Employers need to define roles and allocate tasks in ways that ensure skilled young people can do challenging work that contributes directly to the organization's goals rather than just generating reports. Customized roles and career paths provide clearly defined objectives, reward structures and growth opportunities. Organizations should think about developing distinct career paths for those with distinct technical skills, rather than shoehorning such individuals into existing career models.

P&C insurers will need innovative skills and sourcing strategies to overcome the looming talent gap. Companies should begin now to plot out strategies for finding and retaining the talent they need to compete. Those making this investment now will achieve a competitive advantage over rivals who find their growth strategies frustrated by the retirement of skilled professionals and the shortage of talented replacements.

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Four Steps P&C Insurers Must Take To Recruit Talent

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