HR Challenges in the Insurance Sector

Conquering the Insurance Sector’s Top HR Challenges  

Discover the key insights you need to know to recruit, retain, and manage talent in the insurance industry  

With revenues predicted to reach close to £5 billion per year, the insurance industry is poised for a period of massive growth. However, as all business leaders will know, with growth comes change. This means that the insurance sector must start to consider how they will prepare for this period of transformation in order to expand their workforce, restructure their organisations, and increase their output.  

In this blog, we’ll be looking at the five main HR trends and challenges being faced by the insurance sector – and how you can overcome these challenges with proactive solutions that set you apart from the competition.  

Next Gen Recruitment  

Less than 1 in 10 millennials consider themselves to be ‘very interested’ in working in insurance. As fewer people join the market and more employees age out of the workforce, attracting the next generation of talent is going to be difficult. Perhaps that explains why 71% of UK brokers are currently looking to recruit - and almost 23% of roles are open for more than four months.  

But with 58% of brokers paying more than planned to hire the right candidate in 2023, the race to recruit the best talent is costly. Employers must therefore find ways to fill these talent gaps through apprenticeships, better learning and development opportunities, flexible working opportunities – and more incentives that attract fresh talent.  

Retaining Top Talent 

With recruitment being so challenging and high turnover creating an expensive organisational impact, retaining talent is another key area of focus for the insurance sector.   

Moving towards a management style which supports frequent and ongoing performance feedback helps to foster a culture of growth and development, leaving leaders in a better position to solve the skills shortage and keep staff on board. Employers can also look to boost their talent attraction and retention toolkits by developing areas such as flexible working, supporting financial wellbeing, and embedding equality, diversity, and inclusion into their people strategies.  

And, with 75% of staff admitting they would be more likely to stay with their employer because of their benefits package, it’s clear that the right offering of meaningful support can give you a competitive edge.  

Digital Transformation  

The huge rise in AI and new technologies will continue to change the way that all businesses work. In insurance, intelligent technology will help people to do their jobs more efficiently and enable them to focus their attention on solving challenges and driving innovation.  

While these emerging tools will help to enhance workers’ skills, alleviate workloads, and provide a better service to customers, HR leaders will face a challenge in ensuring their people have the skills and knowledge to use these technologies effectively.  

Development and Upskilling  

Although 71% of insurance employees are willing to reskill, they spend less time on training per year than the cross-industry average. With the required skills rapidly changing, meeting demand in the face of skill shortages is tricky.   

Providing employees with the resources and time to develop their learning is key for building skills in the existing workforce – and helping to tackle the skills shortage.  

Engaging the Workforce  

According to research, building a culture of actively engaged employees is a key priority for insurance organisations if they are to retain a competitive advantage in the marketplace. Doing so can help to support recruitment efforts, as highly engaged companies tend to find it easier to attract and retain talented workers.    

The insurance sector could therefore benefit from building a strong culture of engagement to remain agile and responsive as big changes loom large on the horizon. High engagement will also support the retention of top talent and help to solve some of the challenges posed by the recruitment and skills gaps.  

How We Can Help  

Here at Vivup, we’ve made it our mission to understand what your business and people need most – both in the here and now, and in the future. From meaningful mental health benefits that satisfy the emerging needs of young workers to simple solutions that help you establish a culture of recognition and engagement, you can curate a bespoke offering that enriches the lives of your staff and attracts top talent to your organisation.  

Whatever mental, physical, or financial support your people need can be provided by our all-encompassing employee wellbeing benefits. This cost-effective package not only enables insurance employers to offer the same exciting perks provided by larger competitors, but also supplies the tools you need to build a resilient workforce, retain great staff, and stand out as an employer of choice.    

To learn more about boosting your employee value proposition with our award-winning solutions, get in touch today.  

Sources  

Top HR Challenges in the Insurance Industry for 2023 (darwinbox.com) 

Human Capital Trends in the Insurance Industry | Deloitte US 

Global Insurance Sector Market Intelligence (resourcesolutions.com) 

More than 70% of brokers have a vacancy amid intense recruitment challenges - Insurance Age 

What is a benefits package and what should it include? (breathehr.com) 

2021 Insurance Industry Workforce Trends | BCG