Can insurance shake its 'boring' image to attract young talent?

In the bustling financial districts of London and New York, a crisis is brewing that has nothing to do with market volatility or regulatory pressures. The insurance industry, a pillar of the global financial system, is facing a talent drought of epic proportions. A recent study by Free Partners LLP , a London-based agency, highlights the extent of the problem: Among 16-24 year olds, insurance ranks dead last in career appeal, trailing the finance industry, and even retail and sales.

The study, which surveyed 1,017 young people across the UK and US, reveals a stark disconnect between the industry's self-perception and its image among potential recruits. A majority (67%) of young respondents dismiss insurance as "boring". This perception gap is not merely a matter of youthful disinterest. According to experts at insurance giant Aon, it poses an existential threat to an industry grappling with an ageing workforce and rapid technological change.

The numbers paint a grim picture. Only 34% of young people associate insurance with having a positive impact, despite 79% citing this as a career aspiration. A mere 46% believe the industry can offer personal growth and balance, compared to 87% who seek these qualities in their future jobs.

But all is not lost, argue industry insiders. Jessica Marshall , chief marketing officer at CRC Insurance Services , believes the industry already meets the aspirations of many young people. "We just have to do a better job talking about and addressing these specific areas," she says.

Gen Z's perception of the insurance industry as purely profit-driven also poses a significant challenge for recruitment. A survey revealed that 54% of respondents believe the industry "only cares about money".?

This view is particularly problematic as more young jobseekers are “conscious quitting” and prioritising careers with a purpose. Marshall suggests that to attract these candidates, the insurance industry should proactively highlight its charitable contributions and social engagement. By emphasising these aspects, insurance companies could position themselves as more appealing to purpose-driven young professionals.

Olga Collins , CEO of WBN - Worldwide Broker Network , explains that insurance is often misunderstood as an "overly traditional industry". But it is "full of dynamic opportunities that are vital to the future of global business". She highlights the increasing role of technology and data analytics in the industry. These areas could pique the interest of tech-savvy youth.

Cate Furman , managing partner at Hanover Executive Search , offers a more sobering assessment. She notes that younger generations are drawn to entrepreneurial environments and prioritise work-life balance, areas where insurance is perceived to fall short. "Insurance faces challenges in presenting itself as an engaging, modern, fun and tech-savvy industry," Furman explains. "Instead, it is perceived as rigid, unappealing financially and using outdated systems."

It is important to note that the talent crunch is not unique to insurance. Other financial sectors face similar challenges. But while investment banking and fintech have succeeded in portraying themselves as fast-paced and innovative, insurance lags behind. he report also suggests insurance's inability to effectively use social media to engage with young talent organically is also widening the gap between perception and reality.

The stakes are high. With 50% of the current insurance workforce set to retire within the next 15 years, according to industry estimates, the sector faces a potential talent crisis that could undermine its ability to innovate and adapt to changing risks.

As the world grapples with increasingly complex challenges, from climate change to cybersecurity, the need for skilled risk management professionals has never been greater.?

The question is whether the insurance industry can rebrand itself in time to attract the next generation of talent. If it fails, the consequences could extend far beyond boardrooms and balance sheets, affecting the very foundations of global economic stability.?

Question of the week

Global bond markets at a crossroads: J.P. Morgan Asset Management 's top global fixed income team gathers in London on Thursday.

Government, corporate or emerging market debt – what do investors prefer over the next 3-6 months?

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