Job seekers are speaking out more than ever about their experiences in the hiring process, especially in the insurance industry. Many are frustrated with outdated hiring practices and a lack of transparency. One anonymous job seeker shared their struggle, saying they are going on four months without a job and feel mentally drained from not being selected.
This situation comes at a critical time for the insurance sector, which is facing a significant workforce transition. Many seasoned professionals are nearing retirement, and the industry is grappling with the challenge of replacing their expertise while also attracting new talent. According to the US Bureau of Labor Statistics, about half of the insurance workforce is expected to retire by 2038, potentially leaving over 400,000 vacancies. Currently, more than a quarter of insurance professionals are over 55, while fewer than 25% are under 35.
Replacing these workers is not just about filling positions. The new hires need to be skilled in technology and data analysis, as the industry increasingly relies on AI and automation. However, younger workers are not eager to pursue careers in insurance. A survey found that over 50% of Gen Z and Millennial workers have a negative or neutral view of the industry. Many cite limited career visibility and outdated technology as reasons for their hesitance.
Underwriting departments are particularly feeling the pinch. As the role shifts to require more data-driven decisions, companies are experiencing delays in policy approvals and a drop in application rates. A recent survey indicated that 63% of senior managers in insurance see a lack of digital skills as a significant issue, with 30% labeling it as very serious.
To combat these challenges, some insurance companies are launching reskilling programs and partnering with universities to modernize their talent pipelines. Others are rebranding entry-level positions to include clearer career paths and better pay. Many firms are also exploring remote and hybrid work arrangements to attract younger employees who value flexibility.
However, progress varies across the industry. While larger companies are investing in training and technology, many smaller firms remain stuck with outdated systems, affecting their performance and ability to attract talent.
Despite these hurdles, industry leaders see an opportunity to rethink talent acquisition and job structures. Margaret Resce Milkint, a leader in the insurance field, noted that the rapid retirement of seasoned professionals presents a chance to expand the talent pool by bringing in individuals from different industries.
As the industry faces mounting challenges from climate change, cyber threats, and evolving regulations, the need for a new generation of skilled professionals becomes even more pressing. Without them, the insurance sector may struggle to adapt to modern risks. The real question for insurers is not just how to fill vacancies, but how to reshape these roles to attract the next generation of talent.