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The insurance industry is facing a significant hiring crisis. Nearly 400,000 professionals will retire soon, but there aren't enough recruits to replace them.
Meanwhile, the Bureau of Labor Statistics has projected job openings will grow at 6% over the next decade, which means the industry is staring down a massive talent gap. This situation should set off alarm bells for insurance leaders across all disciplines.
With younger generations hesitant to join the field, rethinking how we attract fresh talent is now essential. Let's explore what's holding potential recruits back, how employers can reel them in, and the role modernized education has to play in keeping young professionals on board.
Unpacking the disconnect
For younger generations who aren't necessarily familiar with the ins and outs of insurance, breaking into the industry can be daunting. To some, it may seem like an overly complicated career without a clear path for professional advancement. But this is woefully incorrect: with hundreds of thousands poised to retire in the coming years, the sky will be the limit for young agents looking to progress.
This misconception is due to a lack of understanding and exposure to the industry, mainly because young people don't often deal with insurance; their parents do. However, with more accessible (and more modern) learning options, there's an opportunity to make insurance feel more approachable, relevant, and even exciting to younger generations.
Appealing to younger generations
Employers have a responsibility to dispel common misbeliefs and get the incoming workforce fired up about careers in insurance. At the very least, they should work to dismantle the notion that insurance is a "tough" industry to break into.
In fact, it's much more accessible than similarly lucrative careers: becoming an insurance agent doesn't require a four-year college degree, just a willingness to participate in 40 hours of pre-licensing education. Use this to your advantage: how can your company reach recent high school graduates unsure about pursuing a four-year degree or those who want to go to college but cannot do so due to financial constraints?
Highlighting the earning potential of insurance agents can also go a long way here. For example, the median wage for insurance agents in Illinois is $150,105 per year. And the more you sell, the more you earn. Making six figures is a feasible accomplishment for those considering insurance careers.
Furthermore, members of Gen Z are uniquely interested in social justice and activism. Per Deloitte and N.E.W., 77% of this cohort believe it's important to work for an organization whose values align with theirs. Insurers looking to attract Gen Z professionals should emphasize the real impact agents are able to make on people's lives. A career in insurance means helping people protect their families, health, and financial future, which can be incredibly rewarding.
Gen Z also comes to the table with certain expectations around remote and hybrid work. They've grown up in a pandemic-era world where employee flexibility and autonomy are the norm. That bodes incredibly well for those eyeing a future in insurance. Many agents can work from home, set their own hours, and even meet clients in the evenings or on weekends. Those who'd rather work part-time can do so as well.
Improving education is the key
Learning any new skill can be challenging. That's especially true for complex topics like insurance, where professionals navigate nuances, requirements, and laws based on where they operate and the discipline they choose to focus on. Therefore, building accurate and engaging content is necessary, particularly for younger generations.
The cohort preparing to enter the workforce gravitates towards flexible online learning models.
Those who attended school during the pandemic have expectations around learning at their own pace with various ways to digest information. This trend reflects the growing demand for education that adapts to individual schedules and learning styles (audio, visual, and activity-based).
That means the traditional classroom methods associated with the insurance industry may feel outdated and in need of a refresh. To keep younger talent engaged, employers should prioritize courses that address the realities and ever-evolving needs of the industry.
By tailoring recruiting efforts to reflect the values of younger generations and updating education strategies to meet their unique needs, insurers can attract (and retain) fresh talent. That hiring gap is not insurmountable because insurance is an industry well-suited to the desires and preferences of Gen Z. They just don't know it yet.
Laura Adams is an award-winning author, speaker, host of Money Girl podcast (43 million downloads), and founder of The Money Stack. She was named one of Empower's "Top 50 Women in Personal Finance," is a Forbes Advisory Board Member, and serves as a Senior Analyst at Aceable.
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