In the fast-paced and competitive landscape of commercial insurance, attracting and retaining top talent is paramount for sustained success. In recent years, the industry has witnessed a significant shift in focus towards talent retention strategies as companies recognize the importance of nurturing their workforce to drive growth and innovation. From offering competitive compensation packages to prioritizing professional development opportunities, commercial insurance companies are exploring various avenues to foster employee engagement and satisfaction.

Here we explore five different tactics for retaining your top talent.

Competitive Compensation Packages

One of the most fundamental aspects of talent retention is ensuring that employees feel valued and adequately compensated for their contributions. According to a report by Lattice, compensation is actually the main driver of employee turnover, with 55% of employees quitting to take jobs with higher compensation.

In the commercial insurance sector, offering competitive compensation packages is essential for attracting and retaining top talent. This includes not only base salaries but also bonuses, incentives, and benefits packages that align with industry standards. By benchmarking compensation against market trends and conducting regular reviews, companies can ensure that their employees are fairly rewarded for their efforts.

Professional Development Opportunities:

In an industry as dynamic as commercial insurance, providing employees with opportunities for continuous learning and career development is crucial for talent retention. Whether through formal training programs, mentorship initiatives, or tuition reimbursement schemes, investing in employees’ professional growth demonstrates a commitment to their long-term success. Additionally, offering clear pathways for advancement and promotion empowers employees to envision a future within the organization, thereby increasing their engagement and motivation.

Embracing Flexibility and Work-Life Balance

In today’s digital age, the traditional nine-to-five work model is becoming increasingly obsolete and employees know it. Employees who can work remotely are actually 13% more likely to stay in their current job for the next five years.

Commercial insurance companies that prioritize flexibility and work-life balance are better positioned to attract and retain top talent. Whether through remote work options, flexible scheduling, or alternative work arrangements, organizations can empower employees to achieve a healthy balance between their professional and personal lives. By recognizing the importance of employee well-being and offering supportive policies, companies can enhance job satisfaction and retention rates.

Cultivating a Positive Organizational Culture:

A positive and inclusive organizational culture is essential for fostering employee engagement and satisfaction. Commercial insurance companies that prioritize diversity, equity, and inclusion initiatives create a sense of belonging among employees, leading to higher levels of engagement and retention. Moreover, fostering open communication, recognizing and rewarding achievements, and promoting collaboration create a supportive work environment where employees feel valued and motivated to contribute their best efforts.

Tailoring Benefits and Perks to Employee Needs

In addition to traditional compensation packages, offering tailored benefits and perks can significantly enhance employee satisfaction and retention. Commercial insurance companies can consider a range of options, including wellness programs, mental health resources, childcare support, and flexible spending accounts, to address the diverse needs of their workforce. By listening to employee feedback and adapting benefits offerings accordingly, organizations can demonstrate a genuine commitment to their employees’ well-being and happiness.

In the competitive landscape of commercial insurance, talent retention has emerged as a critical priority for organizations seeking sustained success. By implementing effective talent retention strategies, including competitive compensation packages, professional development opportunities, flexible work arrangements, positive organizational culture, and tailored benefits offerings, companies can create an environment where employees feel valued, engaged, and motivated to contribute their best efforts. Ultimately, investing in talent retention is not only a sound business strategy but also a reflection of a company’s commitment to its most valuable asset: its people.

In recent years, the insurance industry has witnessed a seismic shift with the rise of insurtech startups. These innovative companies are revolutionizing traditional insurance processes, from underwriting to claims processing, by leveraging cutting-edge technology and data analytics.

The compound annual growth rate (CAGR) of this growing market is projected to be around 43.9% from 2021 to 2030. This dramatic growth presents both opportunities and challenges for traditional insurance companies as they navigate the rapidly evolving landscape of the industry. In this article, we delve into the rise of insurtech and examine its implications for traditional insurance companies.

Opportunities for Traditional Insurance Companies:

1. Innovation and Agility: With AI taking up 40% of all insurtech funding in 2019, these startups are at the forefront of innovation, developing new technologies and business models to meet the evolving needs of consumers. Traditional insurance companies can leverage partnerships or investments in insurtech firms to access innovative solutions and enhance their competitiveness.
   
   
2. Enhanced Customer Experience: Remarkably, six out of every ten Insurtech start-ups prioritize customer-centric approaches, offering seamless digital experiences and personalized services in order to boost customer relations. Traditional insurers can adopt similar strategies to improve customer satisfaction, streamline processes, and differentiate themselves in the market.
   
   
3. Improved Efficiency and Cost Savings: Insurtech solutions automate manual processes, reduce administrative overheads, and optimize risk assessment, leading to improved operational efficiency and cost savings for traditional insurance companies.
   
   
4. Access to New Markets: Insurtech startups often target underserved or niche markets, presenting opportunities for traditional insurers to expand their customer base and enter new segments through strategic partnerships or acquisitions.
   

Challenges Faced by Traditional Insurance Companies:

1. Legacy Systems and Processes: Traditional insurers may struggle to integrate new technologies into their legacy systems and processes, leading to operational challenges and delays in implementation.
   
   
2. Cultural Resistance to Change: According to McKinsey 70 percent of change programs fail to achieve their goals largely due to employee resistance and lack of management support. Overcoming this change hesitancy and fostering a culture of innovation and agility are essential for success in embracing insurtech.
   
   
3. Data Security and Privacy Concerns: Insurtech relies heavily on data analytics and digital platforms, raising concerns about data security and privacy. Traditional insurers must prioritize robust cybersecurity measures and compliance with data protection regulations to mitigate risks.
   
   

Navigating the Path Forward

To thrive in an increasingly digital and competitive landscape, traditional insurance companies must embrace insurtech as an opportunity for growth and transformation.

This entails:

1. Investing in Innovation: Allocate resources to research and development, partnerships with insurtech startups, and the adoption of emerging technologies to drive innovation and agility.
   
   
2. Cultivating a Culture of Innovation: Foster a culture that embraces change, encourages experimentation, and empowers employees to embrace new technologies and ideas.
   
   
3. Enhancing Digital Capabilities: Modernize legacy systems, enhance digital capabilities, and prioritize investments in cybersecurity to ensure resilience in the digital age.
   
   
4. Strategic Partnerships and Collaborations: 31% of insurance companies are collaborating with insurtech firms or startups globally. By forging these strategic partnerships stakeholders have access to innovative solutions, share resources, and drive mutual growth.

The rise of insurtech represents a paradigm shift in the insurance industry, challenging traditional insurers to adapt and innovate in response to evolving consumer demands and technological advancements. By embracing insurtech as an opportunity for growth and transformation, traditional insurance companies can position themselves for success in the digital age, delivering enhanced customer experiences, improving operational efficiency, and driving sustainable growth in an increasingly competitive market landscape.

At the Rogan Group we specialize in facilitating M&A ventures and consulting on the kind of partnerships that you could be interested in if you are looking to tap into the Insuretech market. Reach out if you are interested in discussing more.

With 66% of insurance agents aged 40 or above, the need for fresh perspectives and innovative thinking has become a top priority for insurance firms across the globe. However, despite the industry’s stability and potential for growth, attracting the next generation of talent remains a significant challenge. In an era where tech, finance, and other dynamic sectors vie for young professionals’ attention, executive search firms play a crucial role in helping insurance companies bridge the talent gap.

Gen Z currently makes up 30% of the world’s population and is expected to account for 27% of the workforce by 2025. Understanding what appeals to the rising workforce in their career choices is fundamental to building a sustainable candidate pipeline.

In this article, we delve into six key considerations that young professionals prioritize when considering career moves.

1. Purposeful Work: Young professionals are drawn to roles that offer a sense of purpose and impact. According to a recent study, 80% of Gen Z employees were more fulfilled in their jobs when they felt a direct impact on societal issues.
   
   
2. Mentorship and Feedback: 73% of the youngest generation in the workforce say they will resign if they don’t get regular feedback from their managers. Outlining a structured mentorship and feedback program can be a great way to highlight how you will support rising talent and stand out from other companies.
   
   
3. Work-Life Balance: Achieving a healthy work-life balance is a priority for young professionals. According to a LinkedIn survey, 72% of Gen Z is the most likely generation to have either left or considered leaving a job because their employer did not offer a feasible flexible work policy. Highlighting flexible work arrangements, remote work options, and initiatives that support employee well-being can also be a way to stand out.
   
   
4. Diversity and Inclusion: Diversity and inclusion are non-negotiables for Gen Z. According to a study by Monster 83% of Gen Z job seekers say they prioritize the company’s stance on diversity, equity, and inclusion. This is a core value to highlight during the interview process to be more appealing to the younger generations.
   
   
5. Competitive Compensation and Benefits: While not the sole motivator, competitive compensation and comprehensive benefits packages are important considerations for young talent. The Forage reports that 70% of Gen Zers prioritize pay/salary as a top aspect they want from their next job. Ensure that your salary packages are fair and align with industry standards. By doing so you set your firm up for a yes when you present an offer to a new candidate.
   
   
6. Digital Branding and Recruitment Marketing: In a digital age, executive search firms must leverage online platforms and social media channels to amplify their clients’ employer brand. Engaging content, employee testimonials, and targeted recruitment campaigns can help insurance companies stand out in the competitive talent market.
   

At The Rogan Group, we specialize in helping insurance firms identify and attract top talent from all generations. By understanding the priorities and preferences of the rising generation, we assist our clients in crafting compelling recruitment strategies that resonate with the next generation of insurance professionals.

Four Potential AI Impacts on Insurance Brokerage

The insurance brokerage industry may be on the cusp of a transformational journey with the integration of Artificial Intelligence (AI). As AI technologies continue to advance, their potential to reshape how insurance brokers operate, interact with clients, and make informed decisions cannot be ignored. In this article, we’ll explore four ways AI is poised to change the insurance brokerage landscape

1. Enhanced Customer Experience: AI-powered chatbots and virtual assistants are becoming essential tools for delivering exceptional customer experiences. These technologies can quickly address customer queries, provide personalized recommendations, and even assist in the claims process, thereby reducing response times and enhancing client satisfaction.

2. Data-Driven Insights: The insurance industry thrives on data, and AI can unlock its full potential. Advanced analytics and predictive modeling can analyze vast amounts of data to identify trends, risks, and customer preferences. Brokers armed with actionable insights can tailor their offerings and services more effectively.

3. Underwriting and Risk Assessment: AI algorithms can process data from multiple sources to assess risks and make underwriting decisions with greater accuracy. This not only speeds up the underwriting process but also reduces the likelihood of errors and improves risk evaluation.

4. Fraud Detection and Prevention: Fraudulent claims can lead to substantial losses for insurance companies. AI algorithms can analyze patterns and anomalies in data to detect potential fraudulent activities, enabling brokers to take proactive measures and protect their clients’ interests.

The integration of AI into the insurance brokerage industry presents immense opportunities for growth, efficiency, and customer satisfaction. As firms embark on this journey, it’s vital to view AI as an enabler rather than a disruptor. A well-planned AI strategy, supported by education, collaboration, and ethical considerations, can position insurance brokerage firms to thrive in the evolving landscape.

This article is an excerpt from our TRG Newsletter. If you found this information interesting subscribe to our newsletter today.

Talent Crunch Creates Risk

By Claire Wilkinson, Business Insurance 3/2022

Among the many risks highlighted by top executives for 2022 is the ongoing shortage of talent. While this is by no means the first time the challenge of a talent crunch has been discussed by insurance executives, it appears that the issue has come into full focus with the unpredictable nature and duration of COVID-19.

In the 2022 Allianz Global Corporate & Specialty Risk Barometer, the shortage of skilled workforce placed ninth among top risks. This is the first time the issue has entered the top 10. Attracting and retaining workers has rarely been more challenging, according to CEOs, risk managers, brokers, and other insurance experts. By industry, the talent shortage was ranked as a top five risk in the engineering, construction, real estate, public service, and health care sectors, and as the top risk for transportation.

Similarly, in Deloitte’s first CEO survey of 2022, talent remains a top concern. When CEOs were first asked in June 2021 about the biggest challenge they faced, one quarter pointed to talent-related issues. Asked the same question in September, nearly half said talent, and that concern remains, with half of CEOs in January saying talent and workforce is their main challenge. Difficulties in fighting COVID-19 fatigue among employees, finding/keeping the best people and responding to new work paradigms were some of the issues that CEOs specifically called out.

Perhaps more pertinent for the risk management and insurance industry, 71% of CEOs selected labor/skills shortage as one of the top three external issues they expect to influence or disrupt their business strategy within the next 12 months. Take supply chain risk, for example, a long-time concern that has intensified during the pandemic. Labor shortages can have a major effect on supply chains, with a swathe of workers such as truck drivers, warehouse workers and local delivery drivers in short supply, and businesses, faced with higher operating costs, struggling to recruit and retain workers.

When asked what supply chain challenges their organization has experienced, more than three quarters of CEOs in the Deloitte survey said labor shortages, and more than half noted production and/or logistics delays.

As the world becomes more interconnected, supply chain vulnerabilities are emerging in many areas of business. Cybersecurity is a good example. The attack on the Colonial Pipeline in the U.S. last May underscored the need to strengthen and plan for future outages. The shutdown of the pipeline following a ransomware attack that forced the company to take some systems offline and halt the pipeline’s operations disrupted a major supply of fuel to the East Coast for about a week. Natural disasters, from hurricanes and tsunamis to floods and tornadoes, are also increasing and with rising climate risks inevitably global supply chains will be further disrupted.

It’s clear that with the labor shortages so many industries are experiencing, even with the best business continuity plans, organizations will struggle if they don’t have the right talent. For risk managers, business leaders will be leaning heavily on their expertise to address future volatility, disruption, and uncertainty, and they are well-positioned, after two years of the pandemic, to contribute to their organizations’ success.

Insurance Talent Need – PE and M&A Advisory Service Teams

The top national brokers have had PE and M&A advisory units for a number of years and now we are starting to see large regional players starting to build out these units. These units are responsible for conducting comprehensive reviews of P&C and Benefits insurance coverages of acquisition targets for private equity and other financial sponsor clients. The goal is to mitigate risk pre-close, during the transaction, and post-close. 

Since these services are M&A-focused, they stem from the Private Equity sector. That sector has grown by $4 Trillion in the past decade and “sponsored companies” have grown by 170% in the last few years. Insurance brokers are now moving rapidly to build teams of due diligence analysts, transactional advisors (P&C and EB), and practice leaders to capitalize on this business segment. 

Due to the relative newness of these roles, talent is at a premium. If you are looking to build out these units at your own brokerage, consider the below strategies when recruiting. 

1. Be Organized with Regard to the Search:

Have formal job descriptions and interview structure prepared prior to the search. Also, understand your story and be able to communicate that to candidates.

2. Understand the Market:

Research your competition. Know who has these units, where their staff is located (your target list), and have a basic understanding of compensation models used in these units. 

3. Be Flexible and Move Quickly:

We are currently in one of the most candidate-centric markets of the last twenty years for the insurance industry. We have one national brokerage client that had 106 openings this time last year and now has 606 openings. With that in mind, be organized, consider remote work environments for top talent, and move quickly when you have an “A Candidate” in the pipeline!