The shortage of qualified and experienced underwriters is growing as senior underwriters retire. FirstBest Systems, Inc., provider of software solutions that help property/casualty carriers, conducted a survey about training and knowledge sharing during the 2010 NAMIC Commercial Lines Underwriting Seminar last month and the findings reveal few insurers have leveraged technologies that appeal to Gen Y, facilitate real-time training and collaboration for new hires and teams, and capture underwriting expertise for knowledge-sharing purposes.

A 2010 McKinsey report states that the number of insurance workers 55 or older has increased by 74 percent in the last 10 years, compared to a 45 percent increase for the overall workforce. This means 20 percent of the workforce is near retirement. The insurance industry will need to hire 25,000 new underwriters by 2014.

The top challenges for P&C insurers in attracting high-quality talent, according to McKinsey, are poor reputation, lack of understanding about career opportunities, and a limited pool of trained talent. As the generation gap in the makeup of industry underwriters increases, the industry will need to change the ways it captures the experience and best practices of senior underwriters and trains junior underwriters.