Summary: Demographic trends point to an insurance industry talent crisis. The insurance industry is not attracting millennials or younger workers. As retirement approaches for older workers, the insurance industry will find themselves with a talent gap. Learn more about attracting younger workers to the field and why the insurance industry offers huge employment opportunities for new generations.
The Impact of the Aging Insurance Workforce
According to the U.S. Census Bureau, the 65-and-older population will almost double over the next 30 years, reaching 88 million by 2050. Workforces are aging quickly, and the insurance industry in particular is especially affected by this.
This demographic trend presents a possible insurance industry talent crisis. Nearly 400,000 employees are expected to retire from the insurance industry workforce within the next few years, according to the U.S. Bureau of Labor Statistics.
One problem in particular is the lack of interest in insurance industry as a career:
- Eight out of 10 millennials report having limited knowledge and understanding of the employment opportunities available within the insurance industry, according to a survey conducted by The Institutes.
- 44 percent of millennials do not find a career in insurance interesting, as per Valen Analytics, despite the fact that insurance offers great opportunities to work in a variety of avenues: marketing, finance, data analysis, information technology – all things that would seemingly appeal to this generation.
On top of that, the millennial generation may have also have less experience with insurance due to the fact that many of them are putting off homeownership or even purchasing a car – two items that are quite important to insure. As a result, they may not be in tune with the changing landscape of the insurance industry, which is seeing an upward trend in adaption of advanced technology and social media.
Understanding Millennials and the Next Generation
So what does this mean, and what can help reverse this trend? It begins with understanding the next generation. As we examined in our previous blog post on millennials and the insurance industry, those born between 1981 and 1996 are generally marked by an increased use and familiarity with communications, media and digital technologies. When dealing with a generation marked by advanced technology that moves a fast pace, the insurance industry will need to consider how it may need to adjust to connect with the millennial generation.
Technology
The millennial generation came of age during the Internet boom. The post-millennial generation, which includes many college students and those graduating high school, is growing up in an era of constant connectivity and communication, having not known a time in which Wi-Fi didn’t exist. Putting an emphasis on technology and innovation can attract a younger generation to the insurance industry.
For example, many insurance carriers now offer most of their services through mobile apps. Insurance agents utilize these apps to give clients the ability to file claims, schedule inspections, track their claims process, direct message an agent with questions, or even submit video for appraisals.
Promoting the use of technology would seem to be one way to appeal to the younger generation, perhaps through the use of social media tools. Which brings us to our next topic
Social Media
Social media can help small businesses and insurance agents connect in very impactful way, positioning their status in the insurance field. It can also be a means to attract the next wave of insurance talent. According to Vertafore, millennials are more than twice as likely as other generations to be recruited via social media. Job fairs, such as the ones held at colleges to search for new talent from the graduating classes, is quickly becoming an outdated recruiting tactic.
When you consider that a majority of millennials are thought to interact with organizations online, especially through social media, it only makes sense to seize the opportunity to recruit the same way.
Both the increased use in technology and social media show the continuing shift in the way in which insurance business will be conducted, as well as the recruitment techniques used to grow the insurance industry workforce.
Check out some of our other social media related blog posts:
Let AmTrust be your partner in attracting a younger workforce. As a property and casualty insurer that partners with agents all over the country, we are continually working to improve our technology and stay on top of industry trends. Find out more about AmTrust and how you can join our team of appointed agents.