Not all top performers are destined to be great leaders. In the insurance industry, it’s common to see the best underwriters, brokers, or risk managers fast-tracked into leadership roles—only to struggle when faced with managing people, driving strategy, and making high-pressure decisions.

So how do you identify the real future leaders—the ones with the vision, adaptability, and resilience to steer your firm through industry shifts? In this blog, we’ll break down the key traits of leadership, the mistakes firms make when assessing talent, and the best ways to spot and develop your next generation of executives.

The Myth of the High Performer as a Natural Leader

John had been the top-performing underwriter at his insurance firm for years. His ability to assess risks, craft comprehensive policies, and drive revenue was unmatched. So, when a management role opened up, the promotion seemed obvious. But within months, John was struggling. His team was disengaged, performance reviews were tense, and morale had dipped. His leadership lacked vision, communication, and people management skills—traits that made the difference between a great employee and a great leader.

This story is not uncommon in the insurance industry. Many firms make the mistake of equating high performance in a technical role with leadership potential. But leadership requires an entirely different skill set.

The Importance of Identifying Leadership Potential

The insurance industry is facing a demographic shift. A significant percentage of leadership positions are held by individuals approaching retirement age. According to the U.S. Bureau of Labor Statistics, over the next 15 years, 50% of the current insurance workforce will retire, leaving more than 400,000 open positions unfilled. Without a strong leadership pipeline, firms risk operational disruption and a loss of institutional knowledge.​

Effective succession planning ensures a seamless leadership transition, preserving company culture and strategic vision. It also mitigates the risks of scrambling to fill key roles when senior executives depart. Identifying and developing future leaders early allows firms to develop their skills in a structured and intentional manner.

Building a leadership pipeline is crucial for long-term success. At Eliot Partnership, we specialise in identifying and placing executive leaders who align with your firm’s strategic vision.

Where Companies Go Wrong in Identifying Leadership Talent

Overemphasis on Technical Skills

Insurance firms often promote employees based on their technical expertise rather than their ability to inspire and manage teams. While strong industry knowledge is essential, leadership demands additional competencies like emotional intelligence, strategic thinking, and adaptability.

Neglecting Soft Skills

Leadership is about influence, vision, and collaboration. Yet, companies frequently overlook crucial soft skills such as empathy, communication, and conflict resolution. Without these abilities, even the most knowledgeable industry experts can struggle to lead effectively.

Bias Towards Similarity

Many organisations unconsciously favour candidates who resemble their current leadership team in background, approach, or decision-making style. This can lead to a lack of diversity in thought and strategy, limiting innovation and adaptability in an ever-changing market.

Essential Traits of Future Leaders in the Insurance Industry (2025 and Beyond)

The challenges of 2025 and beyond will reshape the insurance landscape. Regulatory changes, digital transformation, cybersecurity threats, and evolving consumer expectations will require a new breed of leaders. Here are the key traits to look for:

Adaptability

With AI-driven underwriting, blockchain integration, and evolving cyber risks, future leaders must be comfortable navigating change. A 2024 McKinsey study found that 78% of insurance firms are prioritising digital transformation initiatives, making adaptability a critical leadership trait.

Strategic Thinking

Insurance leaders must anticipate market shifts and regulatory changes. Strategic foresight allows firms to proactively adjust to new risks, rather than reactively responding to crises.

Emotional Intelligence

Emotional intelligence is one of the most valued interpersonal skills in the workplace. In fact, 71% of employers prioritise it over technical skills when assessing leadership candidates. Future leaders who possess strong emotional intelligence can foster engagement, improve retention, and promote collaboration within their teams.

Resilience

The insurance industry thrives on risk management, but the next generation of leaders must also navigate internal crises, from economic downturns to operational disruptions. According to a PwC analysis, insurance firms led by resilient executives were up to 40% more likely to achieve higher revenue growth than their competitors during economic downturns. Resilience ensures stability during uncertainty.

How to Spot Future Leaders in Your Insurance Firm

Identifying leadership potential requires a structured approach. Here’s how to do it effectively:

1. Assess Current and Future Leadership Needs

Begin by evaluating your firm's long-term goals and the leadership skills required to meet them. Consider industry trends, organisational culture, and emerging challenges.

• Ask: What leadership qualities will be most valuable given the changes in the insurance industry over the next five years?
• Look for: Employees who already exhibit these qualities in small ways, such as leading internal discussions or volunteering for new projects.

2. Implement Comprehensive Evaluation Processes

To move beyond gut instincts, companies should employ structured assessments:

• 360-Degree Feedback: Collect insights from peers, subordinates, and supervisors to gauge leadership potential. Leaders need to earn respect at multiple levels, not just from management.
• Leadership Assessment Tools: Use psychometric tests and situational judgment assessments to identify candidates with strong decision-making and problem-solving skills.
• Observation During High-Stakes Moments: Watch how employees respond under pressure. Do they maintain composure and provide solutions, or do they struggle with decision-making?

3. Provide Development Opportunities

Spotting leadership potential is just the first step—nurturing it is crucial.

• Mentorship Programs: Pair emerging leaders with experienced executives to accelerate their development.
• Leadership Training: Offer courses focused on strategic thinking, decision-making, and people management.
• Cross-Departmental Exposure: Rotating employees through different roles helps them gain a broader business perspective.
• Encourage Ownership of Projects: Assign high-potential employees’ ownership of initiatives that require coordination, problem-solving, and strategic thinking. See how they perform when given increased responsibility.

4. Encourage Initiative and Innovation

Future leaders often take initiative and think beyond their immediate job responsibilities.

• Look for Employees Who:
  • Identify inefficiencies and suggest process improvements.
  • Volunteer for difficult or ambiguous tasks.
  • Show an interest in mentoring others or sharing knowledge.
  • Display problem-solving skills rather than just escalating issues to management.
• Practical Step: Assign small leadership challenges, such as leading a department meeting, and evaluate how they engage and inspire the team.

5. Monitor and Review Progress

Leadership development is an ongoing process. Regular performance evaluations and feedback loops ensure that potential leaders continue to grow and refine their skills.

• Conduct Leadership Readiness Reviews: Every six months, assess whether identified employees are progressing toward leadership readiness.
• Check for Long-Term Commitment: Future leaders should be deeply engaged with the company’s mission and long-term goals, not just looking for career advancement.

Proactive Leadership Development as a Catalyst for Success

Identifying and nurturing future leaders is essential for ensuring the longevity and success of an insurance firm. As the industry undergoes rapid transformation, firms that invest in leadership development will be best positioned to navigate challenges, retain top talent, and drive innovation.

By recognising that high performance does not always equate to strong leadership, and by implementing structured development strategies, insurance firms can build a resilient and future-ready leadership team. Investing in leadership today secures a competitive advantage for tomorrow.

If you’re looking to build a leadership pipeline for your insurance firm, Eliot Partnership specialises in executive search for the insurance industry. Get in touch with us to ensure your firm is equipped with the right leaders for the future.