If you search for: ‘Young people in insurance’ on Google, you’ll likely find several news articles and websites discussing the talent shortage and the challenge of attracting younger individuals to the industry.
But why is that the case? Why doesn’t insurance attract the younger generation as much as other professions?
This talent shortage is also an issue amongst millennials too.
The Chartered Insurance Institute published a report last year, stressing a talent shortage crisis.
The report revealed that only 4% of millennials find a career in the insurance sector appealing, a strikingly low figure compared to industries like Arts & Entertainment and Education, where over 30% of millennials are more inclined to work in those particular fields.
To make this even more interesting, it was also reported that 25% of the Insurance sector is made up of an ageing population that are expected to retire within the next 10 years.
According to Gracechurch’s Employer Brand Monitor, 3% of London Market underwriters are under the age of 24 and 7% of London Market Claims professionals are also under the age of 24.
When it comes to attracting and retaining young talent, specifically Gen Z, the insurance industry isn’t perceived as the most glamorous or appealing industry at first glance.
However, companies are working to shift this perception by introducing apprenticeships and graduate schemes, designed to equip young people with valuable skills and provide a strong foundation for starting their careers in insurance.
Beazley, Convex, Tokio Marine Kiln, and others in the market already offer apprenticeships/graduate schemes specifically aimed at young people looking to start their careers in insurance.
Another factor to consider is that many young people are unaware of the various career pathways available within the insurance sector.
One way to bridge this knowledge gap could be for insurance companies to engage with schools, giving talks and insights about their roles and what they do. Introducing these career options to students at an early stage could spark their interest, making them more aware of the different opportunities available.
The final, and most significant, point to consider is how the insurance industry is marketed and perceived by younger generations. Why do so many young people view insurance as ‘boring’? This perception may be tied to how it is marketed and the branding surrounding it.
Luckily, there are a few brands within the London Market, who are utilsing all of their great marketing efforts to ensure brand recognition and awareness, proving that Insurance can be cool and in-fact not ‘dull’.
In a recent article, we showcased effective examples of great ATL (Above-the-line) advertisements within the London Market across the last 18 months.
For instance, Beazley organised a drone show in the City of London, Convex ran their own pub for a week, and Chaucer created an AR maze game, where the winner won a return flight to Las Vegas.
These are all excellent examples to market a brand, while also engaging to a younger audience.
Apprenticeships, engaging with schools, and effective marketing are all valuable steps in attracting younger individuals to the insurance industry, but they aren’t a cure-all.
Perhaps the insurance industry will need to find ways to ‘rebrand’ itself slightly, in a manner that resonates with the younger generations, specifically Gen Z’s.
Whether that means exploring a creative outlet such as TikTok, with stats suggesting that 60% of TikTok users are Gen Z. That is quite a large figure, implying that TikTok does have a huge impact on the younger generation.
With continued initiatives and practical discussions, the insurance industry will hopefully move in the right direction, attracting more young professionals over time.