According to the U.S. Census Bureau, millennials and their successors are estimated to make up nearly half of the adult population in the United States by 2030. As customers, they expect interactions to be seamless, omnichannel, real-time and are integrated to platforms that are presently being used and even in future applications or platforms.
The insurance sector is experiencing a talent crisis, with a substantial portion of its workforce nearing retirement and not enough skilled professionals entering the field to replace them. This shortage is exacerbated by the industry’s struggle to appeal to younger generations who may not view insurance as an attractive or innovative field (ReSource Pro) (AmtrustFinancial). To address this challenge effectively, companies must employ a variety of strategies, and outsourcing can play a crucial role in bridging this gap.
It is expected that the insurance landscape will change over the next five to ten years, driven by two primary trends: evolving customer expectations and accelerating technology evolution.
technology developments and cybersecurity concerns do affect the talent gap in the insurance industry in several significant ways:
Addressing these challenges involves strategic planning in talent management, focusing on cybersecurity and technological advancements as central pillars. By promoting and implementing continuous learning and development programs and redefining the career paths available within the industry, insurance companies can begin to close the talent gap. Furthermore, partnerships with educational institutions and technology firms can help cultivate the next generation of insurance professionals equipped to handle the challenges of a digitally driven market.
Outsourcing can be a pivotal strategy in addressing the talent gap. By partnering with firms that specialize in insurance processes, companies can access skilled professionals globally without the constraints of local talent shortages. Outsourcing not only provides access to a larger talent pool but also offers flexibility and scalability, allowing insurance companies to manage operational demands more efficiently during peak periods without the need to permanently expand their workforce.
Outsourcing partners like Staff Boom can offer specialized services that are tailored to the unique needs of the insurance industry, helping firms navigate their talent challenges effectively while maintaining high standards of service and compliance.
By implementing these strategies, the insurance industry can not only address its current talent challenges but also position itself for sustainable growth and innovation in the future. For further insights into effective strategies for managing the insurance talent gap, consider exploring additional resources from industry experts like McKinsey and PwC.
By outsourcing, you:
You do not need to keep specialized talents in-house. Instead of investing significant amounts of resources in staff development and undergoing the recruitment cycle, you gain access to the expertise you need. Another advantage in outsourcing specialized skills is that outsourced talent is more likely to have worked with multiple businesses within their field of expertise, giving them an array of real-life experiences compared to a similar staff that had stayed with one company for the same duration.
With your specialized talent taking care of mission-critical business processes & tasks, you can now focus on your core competencies and give yourself more time & space to work on the business.
Scalability is defined as the ability to adapt functionality, systems, capacity, and availability in response to anticipated or actual changes. It is usually associated with opportunities in growth which means upgrades or expansion is necessary.
Often, in-house teams require wide enough of a timeframe to respond to a demand for scalability. This is due to limitations of resources, staffing, subject-specific experts, and space; not to mention internal bureaucracy, migration of systems, workflow or process updates, and staff training to utilize the tools.
Outsourcing provides the needed flexibility to respond to a business’ scalability requirement without the need for a big capital expense, mass internal system roll outs, staffing, or physical installations for facilities and equipment.
Outsourcing is a smart and cost-effective way in solving your insurance business’ talent gap. It is a ready solution that gives insurance businesses rapid access to the talent or skills at a cost much lower in comparison to bringing in or hiring full time employees. Also, outsourcing companies takes care of recruitment, training, health care benefits, performance management, coaching and everything related to employees.
Insurance businesses need to outsource at the right time and with the right outsourcing partner to realize the competitive edge. By outsourcing, insurance businesses can have the competitive edge of:
Consider outsourcing as part of your business strategy to attract skilled talent on a global scale. Refocus and gain momentum to gain a bigger market share, growing the business, tap to new revenue generation opportunities & establishing sustainability.
To put it into perspective, “Expect to have to pay more, offer more and train more,” (Insurance Journal).
