The insurance industry is facing a critical talent shortage as experienced professionals retire and fewer younger workers enter the space. This issue has been exacerbated by the COVID-19 pandemic, which accelerated retirements and led many seasoned professionals to seek remote opportunities or new careers altogether.

Paul Martin, CEO of Martin & Company, explains, “The pandemic created an opportunity for legacy insurance workers to explore remote work opportunities, forcing some workers to retire and leaving a gap in the industry.”

Younger workers have historically been less attracted to insurance careers. In fact, only 4% of Millennials considered a career in insurance as far back as 2015, a statistic that has remained largely unchanged. However, educational programs focused on insurance and risk management are increasing, providing some hope for filling this talent gap in specialized areas like compliance and regulatory affairs.

The need for compliance experts remains high, but as Sonja Rodebaugh, SVP of Compliance at Martin & Company, highlights, “With respect to compliance and state filings, they are very niche skill sets. There is a smaller talent pool to pull from.”

The solution for many carriers and MGAs may lie in outsourcing and building stronger internship programs to cultivate new talent. As compliance analysts and regulatory professionals continue to retire, having a well-planned strategy will be critical for insurers to remain competitive and compliant.

Key Takeaways:

• The insurance industry is grappling with a talent shortage, particularly in compliance and regulatory affairs.
• Remote work and early retirements have exacerbated this issue.
• Investing in educational programs and outsourcing options can help bridge the talent gap.

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