The insurance industry is at the forefront of innovation and transformation, driven by new technologies, changing customer expectations, and emerging risks. To thrive in this dynamic environment, insurers must recruit and retain tech-savvy talent who can help them leverage new technologies and create value for their customers and stakeholders. However, attracting top tech talent is not a simple task for an industry that has to compete with other sectors for the same pool of talent. How can insurance companies differentiate themselves and become employers of choice for tech talent?
What exactly do we mean by tech talent?
Tech talent refers to workers who have skills and experience in areas such as digital, analytics, artificial intelligence, cloud computing, cybersecurity, and software development. These skills are essential for insurers to leverage new technologies that can improve their efficiency, customer experience, product offerings, and risk management.
According to a 2020 McKinsey report, tech talent is strongly linked with business performance in the insurance industry. The report found that UK insurers with higher proportions of tech talent had higher revenue growth, profitability, and market valuation than their peers.
“When we analysed whether there’s a correlation between business performance and the presence of digital and analytics talent, we found that, among a small subsample of UK insurance companies, the greater the proportion of digital talent a company has, the more profitable it is,” read the study.
But to obtain the right tech talent, businesses require a robust strategy that has the same rigour and focus as their business strategy, especially as the insurance industry sees accelerated change. Insurers must infuse technical skills into their core functions, complemented by softer skills such as customer engagement and empathy.
The opportunities for attracting tech talent in insurance
Attracting top tech talent is an excellent opportunity for insurance companies to enhance their capabilities, performance, and reputation. However, insurance companies must be aware of the factors influencing tech talent's preferences and expectations. According to a PwC report, insurers need to address four key areas to appeal to tech talent:
- Competition from other sectors: Insurance need to showcase their unique value proposition and competitive edge over other industries, especially tech companies, vying for the same pool of talent. Insurance companies can highlight their social impact, customer focus, and innovation potential as differentiators
- Clarity on skills needs: Insurance companies need to have a clear vision of their current and future business goals and how technology can help them achieve them. They also need to communicate their skills requirements and expectations clearly and transparently to potential and existing employees
- Compelling career paths: Insurance companies need to offer tech talent variety and challenge in their work assignments that can help them develop their skills and make a difference. They also need to provide them with support, guidance, recognition, and advancement opportunities
- Diversity and inclusion: Insurance companies need to foster a diverse and inclusive culture that respects and values different backgrounds, perspectives, and experiences. They also need to align their values and actions with those of tech talent who care about environmental sustainability, social justice, and community development
“Insurance is like the type O blood of job search–it is an almost universal option for career considerations,” wrote Audry Torrence in a recent article. “There are literally thousands of career paths within insurance. An insurance career provides insight and interaction with many other industries, and perhaps extensive travel and global opportunities.”