Risk and Reward: The Diverse and Rich Talent Opportunities in the Insurance Industry

The global insurance industry continues to grow at pace. According to the Allianz Global Insurance Report, premiums collected worldwide by insurers in 2023 were the highest yet at EUR 6.2 trillion across property, casualty, life and health insurance sectors.   

These figures are particularly notable given the prolonged challenges posed by climate change and cybercrime, which have ignited debates around ‘affordability versus insurability’. With a growing number of uninsured and underinsured cases, against the backdrop of escalating macroeconomic and geopolitical volatility, the insurance industry faces multifaceted pressures that demand innovative solutions and adaptive strategies. 

UK 

Insurers in the UK have to deliver to consumers demanding more immediacy, diverse products and customer-friendly interactions, against a backdrop of having to navigate a stringent regulatory environment. To address these challenges, the industry is investing heavily in new technologies including analytics, generative AI, and machine learning.

These innovations aim to enhance efficiency, productivity, and improve underwriting and risk selection through more effective data use. 

Talent dynamics are also shifting, with a large portion of employees nearing retirement. The Re: Generation Report highlights that 26% of insurance employees are over 50, and a quarter of the workforce is expected to retire within the next decade. 

Traditionally more inward-focused, the insurance sector needs to become more vocal about its critical role in society and the financial ecosystem to draw talent from financial and professional services and other more customer and data-centric sectors. 

Australia 

The Australian insurance industry is dealing with the increasing frequency and severity of natural disasters - such as bush fires - and regulatory changes. Insurers must adjust their pricing and reinsurance strategies to manage the rising costs of claims and operations, driven by high inflation rates.

Additionally, technological modernisation is critical for enhancing efficiency, customer experience and cybersecurity. Changing customer expectations for more personalised and digital experiences further calls for more innovative approaches but investing in modern technologies while managing associated costs and risks remains a concern. 

Embracing digital transformation through investments in AI and data analytics will enhance efficiency, customer experience and operational processes, while strengthening cybersecurity measures is paramount. Insurers must also stay ahead of regulatory changes by implementing proactive compliance strategies and improving customer-first approaches.

Finally, developing comprehensive risk management strategies to address financial and non-financial risks such as climate change and economic volatility will be crucial for sustainable growth and resilience in the market. 

Like the UK, there is a growing demand for professionals with expertise in data science, cybersecurity, and digital transformation. This shift is accompanied by a similar demographic change, with many experienced professionals nearing retirement, therefore creating talent gaps.

The industry must attract younger talent and re-skill existing employees with a focus on continuous learning and development programs to ensure that the workforce remains competitive and up to date with industry trends. 

Canada 

The Canadian insurance industry faces similar themes to the UK and Australia. The sector continues to grapple with legacy technology and mindset, often lagging behind other financial services sectors in its digital transformation journey.

Many digital initiatives have been likened to repainting an old car, failing to address the underlying issues and truly modernise operations. For property and casualty insurance, climate-related natural disasters also remain a critical, yet unpredictable issue.  

Historically, pricing decisions in the industry have often been constrained by a narrow view of the customer, focusing on individual products rather than the entire customer profile. Despite the abundance of data, utilising it holistically for decision-making remains a challenge due to legacy systems and processes.

We are increasingly seeing the adoption of 'two-in-a-box' or even 'three-in-a-box' organisational structures to ensure aligned incentives, as well as emphasis of talent with an enterprise-wide perspective, capable of horizontal thinking, as opposed to the traditional line-of-business focus.  

Odgers Berndtson works across functions and geographies to identify world-class talent with the right technology, data analytics and cybersecurity expertise. By thinking creatively and prioritising skills over experience where suitable, we facilitate both executive and non-executive director searches. Leveraging our ability to drive meaningful conversations with clients and our broader networks, we help to bring clarity to organisational structure and talent. 

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