The growing talent gap in the industry is an ongoing concern for both incumbent insurers and newer entrants. Insurers’ struggle to attract and retain qualified talent will only intensify as more baby boomers retire and the pool of younger talent left to take their place continues to shrink.
At the core of the issue is that the insurance sector isn’t perceived as attractive to many younger professionals. Insuretechs startups, however, are bucking this trend and successfully attracting millennial talent by using next-gen tech and creating forward-thinking work environments more appealing to the younger workforce.
Continue reading as we discuss the strategies and characteristics helping insuretech startups resonate with millennials and overcome the industry’s staffing shortages.
Embracing Cutting-Edge Technologies
Millennials are the first generation who became well-versed in technology early in their lives. These individuals are accustomed to the convenience and speed of using technology for regular tasks. In contrast, older generations may have shied away from new advancements or even outright rejected their use.
Because millennials already have technology integrated into their day-to-day lives, the expectation is that they will be able to leverage digital innovation in their work as well. In fact, 93% of millennials are willing to automate parts of their job.
Not only do millennials have the capabilities to work in tech-forward environments, but they also want to work for more tech-savvy organizations. These young professionals aren’t keen to work for companies that use antiquated or outdated systems, preferring to work somewhere with a more forward-thinking and innovative mission.
Insuretech companies are at the forefront of tech innovation in the insurance space, meaning they can attract millennials more effectively than others just starting their digital transformation efforts.
Cultivating a Dynamic Work Environment
A big part of the appeal of insuretech startups over employment in the traditional insurance sector is that they tend to offer a flexible, engaging, and collaborative work setting that younger talent is looking for.
Increasingly, millennial workers want a workplace that gives them more flexibility to work on the tasks and projects that interest them rather than routine or predictable ones, which is found in many insurance roles outside of startups. One study shows that 63% of millennials say it’s very or extremely important to be able to choose how they complete their work. This also extends to autonomy for workers to determine when they work, which is more likely to be found in a startup than in traditional employment.
More so than previous generations, millennials prefer jobs they feel make a meaningful impact, which insuretech startups often promise. These younger workers seek purpose in their careers and want to work on projects or initiatives that promote change for the better rather than seek jobs with compensation as their top priority.
Insuretechs offer millennial workers the ability to work on impactful innovations reshaping the traditional insurance sector. The core mission of many insuretechs is to leverage technology to address long-standing issues in the industry, which many younger workers are drawn to. For instance, many insurtechs are helping insurers offer policyholders self-service portals where they can access policy details on their own terms.
In addition, many insuretech solutions are helping the industry become more cost-effective, potentially bringing down premiums and making insurance products more affordable to a larger portion of the population.
Professional Growth Opportunities
One recent study shows that 74% of millennial and Gen Z employees are likely to quit their current roles in the next year because of a lack of skills development opportunities. In other words, younger workers want to find employers that will invest in their development and provide ample growth opportunities, which many startups can provide.
The nature of insuretech startups means they are constantly pushing for innovation and looking to hone their competitive edge in the market, which results in rapid learning and career advancement opportunities attractive to young professionals.
Compared to traditional employers in the insurance space, insuretech startups tend to have a flat organizational structure, meaning millennials can quickly progress in their careers and gain diverse experiences that contribute to the professional growth and skill development they’re looking for.
Aligning with Millennial Values
Insuretech startups often embody values like sustainability, social responsibility, and inclusivity, which are typically important to millennials. According to Zapier, nearly three-quarters of millennial employees feel their job is a major aspect of their personal identity, so finding employers that align and reinforce their personal values is often a high priority to these professionals.
Cultural fit is an important factor for any organization or generation of employees looking for long-lasting and meaningful employment. Thus, the fact that startups’ values tend to align best with younger workers allows them to attract and retain millennial talent more effectively than other employers in the insurance sector.
At Insuresoft, we’re focused on building the next generation of insurance software solutions, helping insurers modernize their operations to stay competitive in today’s dynamic environment. Our innovative solutions allow insurers to thrive no matter the market conditions, driving operational agility that enhances the policyholder experience along the way. If you want to learn more about what our software can do for you, contact us today.