A recent study by specialist insurer Ecclesiastical has revealed that 64% of UK insurance brokers view recruiting young talent as a strategic challenge for their businesses.
The findings, based on a survey of 250 brokers, indicate that while 66% of firms are eager to hire younger employees, half of them are struggling to recruit individuals aged 30 and under.
The research underscores growing concerns about a potential talent shortage in the insurance sector. With 25% of brokers aged over 50 and fewer young people entering the industry, 56% of respondents expressed concern about the industry facing a future workforce gap.
Brokers cited a lack of applicants (66%) and insufficient experience among younger candidates (51%) as primary barriers to attracting younger talent. Additionally, nearly half (48%) of brokers believe the insurance industry is not viewed as an appealing career option for young professionals.
A significant majority (90%) of respondents suggested that industry trade bodies should take more action to promote insurance as a viable and rewarding career path for younger generations.
Addressing the talent gap has become a strategic focus for brokers, with 64% identifying recruitment as a key business priority. Developing new skills to keep pace with industry competition and technological advancements was also cited by 52% of brokers.
The main motivations for hiring younger talent include supporting succession planning (87%), introducing fresh ideas (77%), and acquiring new skills (76%).
Despite recruitment challenges, brokerages are implementing measures to attract young professionals. The research found that 41% of firms are hiring apprentices, and 25% have adopted flexible working policies to attract and retain younger employees.
Additionally, 55% of brokers reported having training programmes in place to support the development of younger staff. Ecclesiastical is encouraging firms without formal training plans to enhance their learning and development offerings to appeal to prospective recruits.
Partnering with insurers may provide brokers access to training programmes, webinars, and in-person sessions designed to help young brokers build essential industry skills.
Richard Coleman (pictured above), managing director at Ecclesiastical, highlighted the industry's need to better promote itself as a career destination. He noted that while the insurance sector is filled with committed professionals, it struggles to attract talent because it is not widely perceived as a purposeful career choice.
“Younger people aspire to do work that gives them a sense of purpose, as well as provide learning and growth opportunities. So, to attract new talent, brokers need to be clear about their own purpose and values. Insurance is fundamentally a purposeful profession with businesses who passionately believe that – we put people and businesses back on their feet in times of need,” Coleman said.
Coleman pointed to Ecclesiastical’s affiliation with the Benefact Group as an example of aligning business growth with societal impact. He explained that as the company grows, it contributes more to charitable causes, offering a compelling message to potential recruits.
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