Bridging the talent gap in commercial insurance

Insurance/reinsurance is one of the top five sectors in Canada where hiring is a challenge, according to the 2023 Canada Mercer Turnover Survey. In fact, 60.5% of respondents in the sector cited difficulty hiring or retaining employees.

That aligns with the results of a poll we took during a Wawanesa roundtable discussion at The Commercial Market: The Changing Opportunity. More than half (51%) of brokers in the roundtable poll and 41% of LinkedIn poll respondents indicated that talent acquisition and retention presents a strong challenge to the broker channel.

Add to that, the highest concentration of tenure in commercial brokerages is 15+ years. The combined impact? With such high turnover rates in the industry, this knowledge gap will continue to widen.

Is an insurance career on Canadian youth’s radar?

“Like Canada as a whole, Canadian insurers are dealing with (an aging workforce). But as they look to build a workforce with the skills of the future, they’ve struggled to attract younger workers in key demographic segments, like Generation Z, that have different needs and expectations from their employers,” according to an analysis by PwC of the changing landscape for Canadian insurers.

Those needs and expectations include hybrid work environments and access to advanced technologies. But one of the biggest problems is attracting young people into a profession that simply isn’t on their radar. Changing that means exposing young people—as well as new Canadians and mid-career talent looking for a second career—to opportunities in commercial insurance brokerages.

It’s why the Insurance Institute of Canada (IIC) recently launched “Project Reframe,” a national multimedia advertising campaign aimed at reframing career perceptions in the insurance industry and promoting insurance as a career choice. The campaign comes with a library of assets that brokerages can use with their own branding in recruitment campaigns.

Many provincial associations are also working with colleges and universities to develop a pipeline of talent. For example, the Insurance Brokers Association of Ontario (IBAO) has partnered with Humber College on a three-month certificate program to bring skilled commercial lines professionals into the broker channel.

Changing how we think around training

As seasoned veterans retire from the industry, commercial brokerages are looking for ways to transfer that deep bench of knowledge to the next generation. The challenge is giving them the necessary experience to take on challenges in commercial underwriting, especially when it can take years to develop those skill sets—and when hybrid work environments make it harder to mentor new recruits.

However, there’s a misconception that training can only be done through years of experience on the job. These days, training can take many forms, from job shadowing and mentorship, to simulated claims and case studies, to cohort training.

By doubling down on training, commercial brokerages can grow their own talent and foster long-term careers for new recruits.

New tech to attract new talent

New technologies and productivity tools can also help commercial brokerages do more with less. But technology isn’t meant to replace the need for new talent; rather, it’s meant to provide brokers with tools to increase their productivity. Using the latest productivity tools can also help to attract and retain younger recruits who want (and expect) to work with cutting-edge technology, like generative AI.

The changing technological landscape is challenging commercial brokerages to think outside of traditional recruitment methodology, including hiring for different skill sets such as data scientists, digital specialists, and human-centred designers. In the coming years, these new skill sets could help commercial brokerages steward their organizations forward in a quickly evolving industry.

Some commercial brokerages are also targeting potential candidates with transferable skill sets. That might mean looking for candidates with experience in adjacent industries, as well as those from different backgrounds (such as new Canadians). It could also mean working more closely with students, such as offering job placements or scholarships.

Changing the narrative on careers in insurance

There’s a need to change the narrative around insurance as a career option—from one that many young people don’t even consider, to one that offers exciting, rewarding career opportunities.

At Wawanesa, we’ve launched cohort training to attract and accelerate talent—and show them what’s possible with a career in insurance. We’ve also launched Wawanesa University – a new hub for learning, career growth and talent development to help people start building their career. Hear more about it in Canadian Underwriter’s What’s on Dec? podcast with Wawanesa’s Anna McCrindell , SVP and COO – East.

No doubt, there’s a wave of change advancing toward brokers—from regulation to technology to consumer expectations. One of the best ways to face those challenges is to invest in the talent in your own brokerage, develop training paths, and work with industry organizations that are building foundational training programs.

If you’re looking for more information on key issues impacting the commercial insurance industry, visit our commercial insurance hub.