By catering to the younger generations’ desire for technological innovation, insurance businesses can reshape their future. (Credit: ArtemisDiana/Adobe Stock)
The insurance industry is facing a talent crisis.
Less than 25% of the industry's workforce is under the age of 35. And within the next 15 years or so, half of the workforce is expected to retire, Accenture reports. Millennials and Gen Zers too often see insurance as a slow-moving, paper-driven environment that doesn’t offer the exciting career opportunities they are looking for, making it hard to recruit them.
Those already in insurance know that it is a rewarding profession. They’ve seen firsthand how their work protects their clients and comes to their aid when they need it most. They’ve also been in the trenches of the industry’s digital transformation, integrating technology to further this important work. While the younger generations overwhelmingly recognize this progress, they also see room for improvement with technology adoption.
We as an industry need to do more to show the potential a career in insurance has to offer. These tech-savvy generations have a lot to offer. If they see the value our industry provides its customers, we can attract talent that will no doubt transform the way we work, making our businesses more efficient so that we can continue our mission of protecting customers.
So how do we get Millennials and Gen Zers excited about insurance?
Digitally connected
In a recent Ivans client survey of Gen Z/Millennial insurance professionals, nearly 70% of survey respondents said the industry's biggest growth opportunity is offering quick and easy digital experiences. That shouldn’t be surprising since these younger generations have grown up with technology. Tools like ChatGPT and social media have become ingrained in their personal lives, and they expect it in their professional lives as well.
Agencies should consider systems that create a connected experience, helping retain customers and employees. Whether it be for filling out an application for work, communicating with peers, or submitting a quote, tasks should be integrated to create a digital, streamlined experience. Millennials and Gen Zers expect to use AI in their workplace, so companies should be ready to adopt this technology, but it’s important they do so in a safe way. Rather than risking employees utilizing general-purpose generative AI models like ChatGPT that can leak confidential data, agencies should consider using an AI-integrated management system. This will keep business and client data safe, while creating the digital connectivity Millennials and Gen Zers in the insurance industry crave.
Transparency is key
Also ranking high on the list of the industry’s biggest growth opportunities, according to Millennial and Gen Z survey respondents, is transparency. They don’t just expect good communication from their employers. They want to work for companies that practice good communication and transparency with their clients as well. While some corners of our industry are nailing client communication, others are severely lacking. Carriers’ transparency with insureds, when it comes to claims and payments, was specifically called out as something younger generations want to see improved.
Even good communication can — and should! — be improved. Agencies, generally viewed by Millennials and Gen Zers as having good communication, can consider using automated marketing platforms to ensure they are communicating all markets and options to their clients. This will ensure transparency and help build trust between all industry stakeholders, young and old.
Work + life = balance
Work-life balance in insurance careers is an important piece of the equation when trying to attract Millennial and Gen Z employees. In fact, nearly 77% of respondents to the Ivans survey said work/life balance is a deciding factor when choosing an employer.
They value collaboration but see it becoming more of a digital, online, or over-the-phone experience than in-person offices. Providing laptops and offering cloud-based software makes this possible. For example, using a browser-based agency management system instead of a traditional desktop application will give your staff the flexibility to work remotely or hybrid.
Embrace your mission
Gen Zers and Millennials are both mission-driven in their careers. So much so that this is the second most important thing they look for when considering employers, according to the Ivans survey. These younger generations want to work for a company that gives them a sense of purpose.
Insurance protects what matters most to people. Agents are among the first to be called in a time of crisis or when something has gone wrong. Insurance professionals take great pride in helping customers through these challenging situations and make it their mission to do all they can to minimize their client’s loss. This is the sense of purpose Millennials and Gen Zers are seeking, so it’s important to not only share your mission with your employees but truly embrace it and integrate it into your culture, strategic decisions and day-to-day processes.
Always open
The final thing to keep in mind is that new generations bring fresh ideas. We know that Millennials and Gen Z want to be heard. These up-and-coming generations are ready to transform the industry with their new ways of seeing the world and tech-savvy ways. As an industry, we must be open to their ideas if we want to retain them as valuable team members.
More than half of respondents to the Ivans survey saw connecting and building on existing tools in the industry as one of the biggest opportunities for growth. They want collaboration across the industry, and that requires leveraging tools that integrate and create connected experiences for all industry stakeholders. Consider open and flexible systems that allow for your tech stack to change over time as the company grows, new tech comes about, and new challenges and ideas are introduced.
Future of the insurance workforce
The insurance industry can be slow to adopt technology, opting instead to stick with tried-and-true paper-driven methods. However, recruiting new talent from the up-and-coming generations will be tougher if your agency lags behind in the digital transformation. This could be especially problematic given the talent shortage the industry has been facing the past few years.
Millennials and Gen Zers are hopeful about the future of insurance, especially with the power of technology by their side. They see the opportunities and crave the connected experiences insurance can provide. In fact, 96% of the Ivans survey respondents said that tech has positively impacted insurance workflows. Just imagine what is possible if insurance companies continue to adopt and integrate technology. By catering to the younger generations’ desire for technological innovation, we can reshape the future of insurance and set our industry up for future success.
Anupam Gupta is chief product officer at Applied Systems Inc. Any opinions expressed here are the author's own.
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