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The research1 survey by specialist insurer Ecclesiastical of 250 UK brokers found that while two-thirds of firms (66%) are keen to hire younger talent, half (50%) struggle to recruit those aged 30 and under.
With a quarter of brokers over the age of 502 and a shortage of young people entering the industry, it’s no surprise that more than half (56%) of brokers surveyed are concerned about a potential talent crisis in the industry.
Talent crisis
With an ever-ageing workforce, engaging the next generation and promoting the insurance sector as an exciting and varied career choice is vital.
Firms believe they are struggling to attract younger talent mainly because there are not enough young people applying for available jobs (66%), and young people don’t have the right experience needed (51%).
Ecclesiastical’s research revealed half (48%) of brokers feel there is a talent shortage because insurance is not seen as an attractive career.
The majority (90%) of brokers feel trade bodies could do more to promote insurance as a great career option for younger people.
Attracting younger talent
Recruiting the best talent is a strategic business issue for nearly two-thirds of the brokers surveyed (64%), followed by developing new skills to keep up with competition and technological advances (52%).
The three main reasons why brokers are keen to attract younger talent is to help with succession planning (87%), to bring new ideas (77%), and to bring new skills (76%).
Despite the challenges to recruit, brokerages are taking proactive steps to attract younger talent. Two in five (41%) are hiring apprentices, and a quarter (25%) have introduced flexible working to attract and retain young people.
While more than half (55%) of brokers said they had training programmes in place to support the development of young brokers, Ecclesiastical is urging those without a plan in place to look at their learning and development offer to prospective recruits.
By speaking to their partner insurers, brokers can gain access to training programmes, webinars, and face-to-face meetings to help young brokers develop their skills on the job.
“The insurance industry is a brilliant place to work, full of bright, passionate, committed people, but people outside of the industry still don’t see it that way. Most people seem to fall into a career in insurance, but the industry can’t rely on that anymore. Across the industry, we need to get better at showcasing what a brilliant place this is to work and the impact that the insurance industry has on the world.
“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 purpose and values. Insurance is fundamentally a purposeful profession with businesses that passionately believe that we put people and businesses back on their feet in times of need.
“At Ecclesiastical, we are part of the Benefact Group, and we’re very clear about our purpose to contribute to the greater good of society. The more we grow, the more we give to good causes, helping to build better lives. It’s a powerful message that resonates with the people we attract.”
Case studies
Hattie Course, 23, Trainee Client Manager at James Hallam
I fell into insurance after completing my Master’s Degree. It was meant to be a job to tie me over, but it stuck.
My manager was so invested in me, and she’s put me forward for so many opportunities. I have felt supported, and it’s a fantastic career because there is so much choice. There are lots of options, it’s not just selling insurance. I love being client-facing, and I’m also interested in moving into more technical roles in the future. I’m excited to explore the possibilities and take on new challenges.
There is a perception of the insurance industry that isn’t true. There’s a view that it’s an old boys club, and this puts off women my age, but it’s nothing like that. It’s a great culture, and I work with brilliant people. The challenge is that young people don’t know about it. When I went to careers fairs, there were no insurance brokers there. Young people need to know that the insurance industry is a great career option for them. There should be more visits to schools, colleges, and universities.
Sam Haddock, 27, Personal Lines Executive at Lloyd and Whyte
I ended up in insurance because I wanted to get out of teaching. My friend, who works for Ecclesiastical, recommended I apply for a trainee job there. I spent three years developing my career within the household team before I recently moved within the Benefact Group to Lloyd and Whyte as a broker.
It’s not just about insurance, it’s about relationships. I enjoy working with people and helping people. People come to us for our expertise, and they put all their trust in us to protect them should the worst happen. I enjoy that every day is different, and every person has different needs.
Brokers make sure quirky risks are dealt with properly. Insurance has a bad reputation; it isn’t seen as ‘cool’, but insurance can be an interesting career. For example, if someone is interested in sports cars, why not consider being an insurance broker for sports cars? And perhaps you could afford your own one eventually!
1 250 UK brokers surveyed by FWD during August and September 2024
2 Regeneration report | Free Partners