Can We Make Insurance Careers ‘Sexy’ to Millennials?

When you think of the insurance industry, the words “cool” or “sexy” don't come to mind. And this perception has hindered many young, talented workers from seeing the value of insurance as a career path.

It's no longer enough to simply provide stable job opportunities; we have to find a way to make insurance relevant to a new breed of employees. The next generation of workers differs in regard to age, cultural backgrounds, skill sets and working styles. Studies have proven that millennials crave innovation, independence and flexibility, gravitating toward such companies as Google and Facebook that have builtempires around those principles.

The industry soon will lose a good chunk of its workforce. According to a survey from The Institutes, 50% of insurance workers are nearing retirement age while half of the total workforce will consist of millennials by the year 2020. Of this group, only 5% have interest in an insurance career and an overwhelming 44% think that working in the insurance industry sounds “boring.”

Millennials, or those born between 1980 and 1996, are the largest generation in the U.S. According to a recent outlook from Applied Systems Inc., there are nearly 77 million millennials in the U.S. with an average household income of $60,000, according to the U.S. Census Bureau. They are also the most educated generation, with nearly 1 in 4 holding at least a bachelor's degree. They are motivated, bright and hungry for jobs that can give them purpose.

They will undoubtedly become the largest customer base as well, so having employees of the same generation and mindset will be invaluable.

Why is a diverse workforce necessary? Consider the following:

• Minority groups account for 87% of the national population growth from 2000 to 2010.

• Based on current projections, the U.S. will be a majority-minority country by 2042, which means that the majority of residents will be racial or ethnic minorities, as opposed to white non-Hispanics.

• The Hispanic personal-lines market is projected to grow to nearly $41 billion by 2020.

• By 2028, 75% of discretionary spending will be controlled by women.

The country's largest generation grew up in the digital age, in which the world has slowly become smaller and smaller through the proliferation of technology. Millennials aren't just more diverse in terms of backgrounds, but also in their ways of thinking. They've grown up in a world where all information is completely accessible—and they expect that the industries they choose to work in will embrace that fact.

According to Vertafore's 2014 Young Professional Survey, 51% of millennials rate technology as “very important” to keeping them in the industry. Conversely, technology jobs within insurance continue to be the most in demand and are expected to grow at an extraordinary rate, with almost 75% of carriers expected to increase their tech staffs over the next 12 months.

With a view into the type of talent we need to recruit, the next question is how to accommodate this highly connected, diverse and tech-savvy generation? The answer lies in using big data and analytics to help bring insurance into the 21st century. Even more importantly, there is an opportunity for tech-minded individuals to help make insurance more efficient and create an engaging customer experience.

Insurance is playing catch-up in convincing the brightest talent that this is an industry ripe for innovation, especially as it pertains to the millennial generation. Weaving tech into how insurance is run is the key to keeping this diverse and dynamic workforce. Insurance may not have been “cool” for some time, but there are ways to make it an attractive option by focusing on what the diverse millennial generation wants and needs—the ability to innovate and use technology to improve people's daily lives.