The Stats Are In: The Current Generation Wants More Online Interaction With Insurers
A crisis is brewing in the nation’s insurance sector, and it is one that could have disastrous effects if left unaddressed.
The crisis is an approaching workforce shortfall within the insurance industry. As Baby Boomers continue to retire, a gap is beginning to appear in the number of millennials entering the insurance workforce to replace them.
A number of factors may contribute to the problem, and the solution may not be a simple one. Possibly the top contributor is technology. While small to medium-sized insurers are increasingly advancing in the use of cutting-edge technology, such as risk or insurance management software and cloud-based computing, an internal hierarchy is still in place that millennials may see as inhibitive to advancement.
Because the smaller insurance company relies on managing risk in order to stay afloat, its management software often includes modules for underwriting and accounting in addition to sales. These aspects of the business may not seem interesting for someone in Generation X who is plugged into social media or other apps with quick returns and rapid resolution.
Granted, the insurance industry has not exactly had a glamorous reputation, but the truth is that the nation’s very economic health depends upon the strength of this sector, and this is not confined to large insurance firms. Smaller insurance companies play a tremendous role in protecting the assets of small businesses, families and other entities.
So what is the solution to attracting millennials to careers in the insurance industry? Unfortunately, there will be no one single solution. However, there are strategies that companies can utilize to better illustrate the importance of this segment of the economy.
For instance, some analysts are recommending that insurance companies take a more proactive approach to attracting new talent. This means actively getting involved in scholastic job fairs and promoting their companies to young job seekers.
Another strategy includes adding new and creative benefits such as gym memberships, flexible work schedules and telecommuting. These benefits have a track record of attracting millennials because they offer assurance that the company values its employees.
Additionally, it may be necessary for recruiting companies to “think outside of the box” when it comes to seeking new talent. Instead of defining parameters that the applicants must fit, it may be a better idea to look at the overall strengths of each individual and find the best way to make those strengths fit within the company.
Regardless of the methods used, the fact remains unchanged that a potential workforce crisis is poised on the horizon for small to medium-sized insurance companies. The sooner the issue is addressed, the greater the chance that the risk will become a non-event.