The talent gap: Attracting a new generation of game-changers
The impending demographic cliff has long been a concern within the insurance industry, and our early career pathways must attract top candidates who prioritise creativity and innovation. We face fierce competition from other financial services sectors and the tech industry, which have been more proactive in broadcasting exciting opportunities for career development, fostering an atmosphere for talent to thrive, and creating a welcoming environment for diverse perspectives, all expected of top employers today.
Research from the CII indicates that only 4%[1] of young people find an insurance career attractive, while 25% of the current workforce is due to retire in the next decade.[2] Ironically, we have failed to successfully address a key risk for future-proofing our industry: a fresh generation of skilled professionals.
An industry ready for disruptors
Climate resilience and geopolitical risk create an insurance landscape ripe for young game-changers passionate about creating and implementing new products that drive growth. Few industries offer such an array of specialisms with ample opportunities for global placements and travel. Expertise in key emerging risks, including cybersecurity, climate analytics, and geopolitical dynamics, is now essential in the insurance market, thus, we must market this exciting environment for dedicated, forward-thinking individuals.
Despite public perceptions and outdated stereotypes, insurance executives have been cutting-edge in terms of embracing technology to increase efficiency. Current consolidations and artificial intelligence will likely lead to job cuts in traditional industry roles. That means we do not want to attract individuals who are looking for the caricature of long lunches and pen-pushing found in some quarters of the London insurance market. We need to encourage talented candidates with the drive to create a future-proof industry, and these are some steps we can take to accelerate the process.
Encouraging diversity to grow the talent pool
Rectifying our poor public image as “pale, stale, and male” (a label that does not apply to me) is necessary for attracting and retaining creative talent.
Proactive implementation of DEI initiatives is not just a social good but a strong indicator of financial growth.[3] Without them, we risk losing populations of valuable perspectives who will migrate to industries with more progressive reputations. Generation Z and Alpha are the most diverse generations[4] and are more socially conscious than their predecessors.[5] As an industry, we have fallen behind leading employers in replicating these cultural attitudes in our workplaces.
Despite recent politically charged rhetoric around DEI and notable scale backing of initiatives, the insurance industry cannot afford to abandon these efforts. The Financial Conduct Authority and Prudential Regulation Authority have stated they will not proceed with implementing proposed DEI rules for UK financial firms, signalling to prospective employees that diversity and inclusion are not a priority in the financial services sector.[6]
Insurance executives who do not prioritise diversity are undermining their operations, as, unlike banking and big tech, we do not enjoy the same steady stream of young graduates entering our sector. We’ve seen promising results from industry gender and racial rebalancing efforts, but improvement is moving too slowly.
Lloyd’s Market Policies and Practices (MP&P) show the gender balance to have improved to 44%-1 % year-on-year, but the number of women in leadership roles still lags at 36% (still a 1% improvement compared to 2024).[7] After the 2019 Bloomberg exposé[8] that reinforced Lloyd’s of London’s reputation as an unsafe space for women, Lloyd’s is finally proposing a modern and streamlined process for addressing non-financial misconduct.[9]
Toxic work environments matter to the next generation of professionals, thus, we need to actively and publicly combat our “laddish” image through clear goals and updates on progress broadcasted to the public.
Creating clear career trajectories for candidates of all backgrounds
Diversity of background is just as important as gender and racial diversity. Much of the older generation in the insurance market joined the industry as school leavers and apprentices. Fortunately, compared to 20 years ago when many new hires enjoyed a family connection, the industry has become more meritocratic regarding hiring and advancement. However, entry positions are still geared towards university graduates, and a degree is now expected among executives, however, an entrepreneurial spirit often surpasses any university recognition.
By only considering university graduates for certain positions, we do ourselves a disservice by excluding a population that historically drove our industry to the success and prestige it enjoys today. The reintegration of apprenticeship programs in partnership with graduate schemes that demonstrate clear career trajectories will attract enthusiastic, driven young people of diverse backgrounds, as we need them now more than ever. This sentiment also applies to reflecting the London market’s global reach inside our offices, an area we have traditionally succeeded. A post-Brexit world means we should also consider overseas career schemes to continue our steady flow of global talent, enriching the London market’s capabilities.
The most creative and dynamic hires are those who seek purpose in their work, and many uninformed career searchers view insurance as a meaningless industry. Companies are now held accountable for their complicity in climate change, human rights abuses, and social immobility. A forward-thinking, meritocratic culture with material commitments to ESG missions will enable top talent to see the purposeful work we do.
As an industry, many of our strengths are too often understood as weaknesses. Our success is built on relationships through face-to-face meetings in both formal and informal settings, an asset that differentiates us from competing industries.
Our social work environment, if welcoming and accessible to all, will serve as a needed change for young, energetic people tired of working in the confines of a home office. Our rich traditions are the backbone of our industry and should be preserved for future generations, but they risk becoming obsolete if we do not act now to attract new waves of dedicated insurance professionals.
Written by: Amelia Leaphart, Public Relations and Business Development Assistant
[1] See page 2 CII research on the New Gen Talent Shortage Crisis: new-gen-talent-shortage-crisis.pdf
[2] Ibid
[3] How diversity, equity, and inclusion (DE&I) matter | McKinsey
[4] Age groups – GOV.UK Ethnicity facts and figures
[6] What does the FCA scale back on DEI commitments mean for firms? – FTAdviser
[7] Lloyd’s shows continued progress towards inclusivity and talent ambition
[8] The Old Daytime-Drinking, Sexual-Harassing Ways Are Thriving at Lloyd’s – Bloomberg