Insurance is one of the oldest and most traditional industries. It has a major impact on Europe’s economic growth and development. The sector generates premium income of more than €1 300bn and invests over €10 300bn in the economy, according to the “European Insurance - Key Facts 2019”. Also according to this report, Europe currently generates a third of global insurance premiums, ranking in second place behind the Asia-Pacific region and followed by North America. In Europe, the United Kingdom has over 1/4 of the insurance market (27%), followed by Germany and France, with 18% each.
By providing a long-term investment in the economy the insurance industry promotes financial stability. It is the largest institutional investor in the EU, with more than €10.3trn of assets under management invested in the economy in 2018, which is equivalent to 58% of the GDP of the EU.
The insurance sector is an important employer. In 2018, there were 3 200 insurance companies operating in Europe with over 900 000 employees. In the UK, the sector directly employs 94,200 individuals; Germany has 528 insurance companies which employ 495,400 people, and French insurance companies employ 220,000 people.
However, the ongoing technological transformation of the sector is impacting the way insurance companies are recruiting and is generating a demand for new profiles and skills-set.
The insurance sector is being disrupted by new technologies that are changing the way insurers do business. According to Deloitte, the adoption of robotic process automation (RPA), artificial intelligence (AI), and advanced analytics can greatly improve insurance activities by enabling the removal of manual underwriting and pricing activities; improving underwriting predictability and profitability, and providing greater service and transparency to brokers and customers.
Furthermore, according to McKinsey’s “Insurance 2030: The impact of AI on the future of insurancehttps://www.mckinsey.com/industries/financial-services/our-insights/insurance-2030-the-impact-of-ai-on-the-future-of-insurance” research, AI-based insurance will use new technologies to create innovative products, harness cognitive learning insights from new data sources, streamline processes and lower costs, and exceed customer expectations for individualisation and dynamic adaptation.
Therefore, insurers cannot rely only on their current employees to complete the digital transformation of the business. They need to bring in tech-savvy people that are fully committed to innovation and have the ability to apply data-driven and analytical thinking to all insurance activities — from customer acquisition to pricing and underwriting to customer service and claims.
According to a report by the Observatory of the Evolution of Insurance Professions (OEMA), published in June 2018, in the years to come the most wanted recruitment profiles will be related to the core business, such as actuarial science, technical design, marketing, etc. In opposition, there will be less recruitment in support and steering professions: administration, logistics, information and communication systems. Also, the number of executives will continue to increase with the rising demand for graduates.
In addition to this, Accenture’s “Workforce of the Future: Why Many Insurers Will Miss the Mark”, states that science, technology, engineering, and mathematics (STEM) skills are crucial to realise the potential of digitalised processes, big data, algorithms and real-time analytics. Whereas, creativity and flexibility help navigating fast-changing policy frameworks and regulations. And softer skills (problem-solving, communication, etc) allow to boost sales, enable collaboration and deliver personalised customer experiences.
However, candidates with these skills are in high demand across many industries and insurance companies are hardly their employers of choice. In such a competitive environment, insurers must fight to attract and secure the right talent. Hence, they must transform the sector image from traditional and outdated to innovative and digitally friendly. Creating an innovation culture is key to attract and retain top talent.
Attracting and securing the right talent is one of the main struggles insurance companies are facing when it comes to the digital transformation of their business. With new job profiles emerging in the industry, insurers need to hire people with a skills-set that strays away from the traditional and usual job requirements.
Read our report on recruitment in the Insurance sector to learn more about the recruitment issues that insurers are currently facing and discover the best strategies to overcome these issues and attract and retain top talent:
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