The insurance industry is built on the skill of its underwriters in assessing and pricing risk, but there are some indicators that suggest an aging workforce combined with a continuing lack of contract certainty could be creating future challenges. Steps should be taken now to record the knowledge, experience and even the mistakes of industry professionals before they collect their 401Ks.
Tens of thousands of underwriters are approaching retirement and the Bureau of Labor Statistics (BLS) reveals that projected employment in this particular profession is likely to fall 6% by 2022, and it appears the insurance industry may have a people problem.
This collection of highly specialized individuals could dwindle to fewer than 100,000 souls if the BLS forecast proves accurate, and with market consolidation picking up, insurance companies have even more reason to build greater economies of scale into their businesses.
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