The insurance industry’s digital transformation is upon us. Once a trendy topic of conversation is now becoming a baseline for the industry. From online access to mobile apps and chat bots, incumbent insurance companies are investing in technology and digital talent to stay competitive. Venture-backed insurtech startups are abound. However, attracting tech talent to the insurance industry is presenting its challenges.
Even in the best of times, hiring and retaining employees is difficult and expensive. Particularly with today’s younger candidates. The insurance industry is currently facing a perception challenge when it comes to attracting tech talent. Positions with digital innovators such as Amazon, Apple and Google seem to be the more desirable and trendy choice compared to a much more mature insurance industry. The industry will need to identify new and innovative ways to compete for this talent and be the employer of choice.
Gen-Z tech talent are looking for firms with a modern, remote culture and up-to-date tech tools to work with. New insurtech organizations are flooding the market and leading the digital transformation of the industry, however, many incumbent insurers are faced with antiquated legacy systems that need an overhaul if they are to leverage the technological revolution.
So how do insurers overcome these challenges? They must change their approach to hiring and development. Executives and the company’s board must acknowledge that their businesses require different types of talent than in the past and that the individuals they are hiring require different options in their work lives than previous employees.
Insurtech partnerships is one way to provide valuable opportunities for incumbent insurers to attract and retain emerging talent. Insurers have access to capital. Large insurers have set aside a significant amount of funds for investment in new technologies and partnerships, which provides them access to these new and progressive companies. This is accomplished either through direct partnerships or by teaming up with venture-capital funds.
Insurance companies have invited the insurtech start-ups to collaborate with them to help test their business model. Each side has its own value it brings to the equation. The start-up offers solid technology and processes. The insurer offers a customer base and operational knowledge and experience. Combined they can explore innovations in areas such as marketing, sales, claims or customer service.
As executives and boards try to figure out how to give customers what they want, when they want it, and how they want it – they will also need to apply the same to the tech talent they hire.