Want to stay on top of the latest HR trends in the insurance industry? From rising attrition rates to the growing concerns around cybersecurity, here’s a curated list of the top HR trends shaping the insurance industry.This is an exciting time to be an HR leader in the global insurance industry.
Meanwhile, the fundamental element that drives businesses – human capital – is undergoing a metamorphosis. The pandemic has demolished the old notions around work and productivity. As we move to the next phase of the industry’s growth, it’s important to acknowledge that technology will play a pivotal role in this transformation.
As an HR professional, it is important to have your pulse on what’s happening in the market and align your talent strategies accordingly so you can accommodate the changing needs of business, talent, and the market. We’ve curated four of the most important trends that are shaping human resources in the insurance industry.
Trend #1 - Premiums Are Rising, Talent Is Resigning
Did you know that 89% of insurance agents quit within three years? In fact, a survey has estimated that 54% of the workforce left the industry in 2021. While low wages, job dissatisfaction, and inadequate working conditions remain some of the top reasons why employees are quitting, reasons such as feeling undervalued or stagnant in their current role too contributed to this ongoing HR trend also known as the ‘Great Resignation’.
It is important to note that even though attrition was high, the insurance industry continued to report steady growth across categories and is expected to keep growing in 2022-23. In fact, the industry is ramping up hiring with as many as 56% of companies planning to increase their headcount by the end of this year. However, attracting the right talent, especially for senior roles, remains extremely challenging.
Trend #2 - Culture Will Be a Deal Breaker
With a hierarchal work environment, the insurance industry is relatively more traditional compared with industries such as fintech or ed-tech. However, in the new world, the industry must relook at and reimagine its work culture if it wants to attract the best millennial and Gen Z talent.
What do we mean by that? To begin with, the era of strict hierarchy and siloed work environment is on the way out. The current HR trend is to empower your employees so that they can take charge of their own careers.
The new-age employee thrives in an environment that values wellbeing, social unity, collaboration, opportunities to learn and grow as well as flexibility. The industry must also take bold steps to reduce the stress levels of employees. Investing in HR tools that are geared towards attracting and retaining new-age talent, and managing employee engagement in the workplace, will help insurers handle this challenge.
Trend #3 - Insurance Will Be Impacted by Technology Disruptions
The giant leaps being made by technology have disrupted every single industry, and this will have cascading effects on the insurance industry as well. For example, the electric vehicle boom in the automobile industry led to unprecedented gains being made in R&D of the electric vehicles.
Consequently, insurers will have to train their workforce to stay on top of these changes to understand the core operating risks and compensate for the losses incurred accordingly. They will also have to upskill their sales staff to handle the requirements of a newly emerging, evolving industry.
New-age HR platforms can help you ensure that your talent is digitally savvy, customer-centric, and resilient. An upskilled and well-trained workforce in tune with the disruptions in the industry can help your organization harness this HR trend to its benefit and grow exponentially even through a tumultuous timeline.
Trend #4 - IT and Cybersecurity Are Big Risks
The pandemic has accelerated digital transformation and insurance companies’ dependence on technology. In the highly regulated insurance industry where providers hold a substantial number of highly confidential data, this is a cause for critical concern.
Studies indicate that as many as 73% of surveyed insurance supervisors are concerned about the risks of such rapid digitization. In fact, it was found that the financial sector faced the largest number of COVID-19-related cyber events, second only to the health sector.
The insurance industry has been quick to identify the threat of cyber-attacks. This in turn has given rise to the fourth major HR trend – the need to educate insurance professionals on the emerging threats to data security. As a result, many firms are ditching legacy systems for state-of-the-art globally compliant HR platforms that provide protection from advanced threats and vulnerabilities.
The insurance industry’s growth trajectory is expected to continue upwards in the coming future. The question now is whether you, as an HR leader, are prepared to tackle the numerous and unique challenges that invariably come with growth.
Read more about the top HR trends and get a deeper insight into how you can harness these trends for your benefit by downloading our comprehensive guide now.