Insurance Industry Insights (Spring 2024)

The Insurance industry is expected to experience a lot of change in the coming years. With 50% of the workforce projected to enter retirement by 2028, many companies will need to find young talent to fill the gaps that the older generations will leave. With this generation gap of workers, it has left the younger Millennials and Gen Z with little to no experience in the industry. Do you and your organization have a plan to source qualified talent? If not, do you have the ability to train and develop talent that lacks experience?

As it has in the past, it will be increasingly difficult to pull the younger generation from industries like Finance and Technology. This is where not only a solid talent attraction strategy will come into play, but your Employer Value Proposition (EVP). You need to demonstrate to candidates why they should work for you over a competing company or industry. Putting emphasis on development, DEI, benefits, and the value that your brand brings to candidates, can be a great part of your talent attraction strategy. 

A Resilient Industry

Everyone needs some kind of coverage, even in times of economic uncertainty, which explains why Insurance is historically such a resilient sector. Despite spotty layoffs here and there, most insurance companies plan to increase hiring in the next 12 months. In fact, 50% of companies planning to increase hiring are doing so due to the increase of business demands. Additionally, 72% of insurance companies are expected to grow their revenue this year, signaling that we are approaching an era of prosperity in the industry.

By being ahead of the curve, it's a unique opportunity for companies in the Insurance sector to poach some seasoned talent from industries that experienced heavy layoffs like tech. Not only have most insurance organizations weathered the storm, but they could come back stronger than ever.

Unexpected Opportunities with AI

There is a lot of talk in every industry about how AI will start replacing jobs and revolutionize the workforce. There are already reports of some insurance providers utilizing AI to instantly give claims to adjusters based on claim history, call transcripts, incident reports, and other medical and legal documents. A report from McKinsey even lays out all the ways AI will affect the insurance industry specifically, detailing how Insurance companies can benefit from real-time decision-making and data processing.

While AI is a nice tool for companies in any sector to help better their customer experience, how will AI affect their risk? Will data security, information accuracy, and compliance issues bring a new wave of potential growth to the Insurance industry? Companies will have to be more cautious about how they use artificial intelligence and how they manage customer data, or they will face a litany of lawsuits, regulatory fines, and potential security costs.

The Perfect Storm

There's a chance we are living in one of the most chaotic times in human history. With wars between global powers, terrorist attacks, climate change, and the rapid rise of disruptive technologies, there are plenty of reasons why insurance companies have seen an increase in claims and policies. Natural disasters like the recent Texas storm that left half a million people without power and thousands of others stranded at airports across the state are becoming more and more regular. This is the second major storm that's affected Texas's ability to power the state in the last few years and residents are prepping for the worst.

With once-in-a-lifetime events seemingly happening once a quarter, people are starting to come to terms with the fact that they need coverage. Is this a sign that the industry is alive and well? The data seems to suggest that may be the case. With a solid rebound from the pandemic, the total US life insurance market has experienced its third consecutive year of record sales, while the total number of policies sold across the industry grew by 4%.

Due to a strong bounce back from Covid, positive revenue numbers across the industry, increased hiring in the sector, and new possibilities with AI, Insurance is poised for strong growth in the coming years. If you're interested in learning about how acquiring the best talent available can help your organization realize that growth, let us know and we can work on maximizing your potential.