A version of this article was published in Insurance News Net Magazine, too!
The insurance industry is on the brink of a talent crisis. The average age of a United States insurance agent is 59. Many will retire in the next decade, and it's increasingly difficult to recruit younger talent. Most people in insurance will tell you they "fell into" their jobs, rather than seeking them out. Less than 22 percent of finance and insurance employees are "truly happy" at work, making it one of the least desirable industries in the country.
Why Millennials Don’t Want to Work in Insurance
Nobody wants to interact with the insurance world. It’s hard to understand - plagued by jargon and complex processes - and harder to use, as outdated, clunky technology experiences are standard.
Millennials have been dubbed the young invincible generation. We’re generally healthy and came of age during a recession, and therefore used to living with less security. It feels wasteful to pay for something we probably won't use. We categorize insurance as another inconvenience that comes with adulthood. Why does this generation - my generation - have so little incentive to work in insurance?
- There's no clear mission. Millennials work for a purpose, not a paycheck, and right now the industry is not communicating its unique and vital purpose.
- It's too complicated. Insurance is highly regulated because we literally deal with life and death. We use unfamiliar language to talk about scary life situations. No other industry makes it as difficult to buy and manage products. The steep learning curve, combined with a poorly communicated purpose sets up a huge barrier to entry.
- Products are intangible and irrelevant. Insurance, as a concept, is tough for most to wrap their heads around. It’s a promise, not a product, and it’s a tough sell. We don't want to think about dying or getting sick, and we definitely don't want to spend our hard-earned money on it. That’s not a product a mission-driven millennial will want to stand behind.
How to Fix It
First and foremost, identify why you're doing what you're doing. The insurance industry has an important purpose, but we must improve how we communicate it. There is far too much emphasis on individual products and how they work. It's not likely you'll find people passionate about selling your particular insurance product. However, there is no shortage of people with a mission to help others be healthier and change lives for the better. Find the men and women motivated to solve the problem you’re working to solve.
Once you understand your mission, examine your corporate culture and integrate it into everything you do. Insurance is one of the unhappiest industries in the country, and a clear mission is key to attracting and retaining people passionate about their work.
Focus your energy on creating a great work environment. The companies that have been most successful in recruiting younger talent are the innovative companies like Google that are never mired in the way things have always been. Younger generations don’t worry about work-life balance as much as we do work-life integration, so take care of your employees both inside and outside the office. Your employees can be your greatest asset or your greatest downfall when it comes to recruiting - the companies that focus on their employees will find company advocates within their ranks.
Further, Millennials are ambitious, and turned off by bureaucratic corporate structure and information siloes. We want to move up quickly and will move on if career growth is unattainable. This industry is in desperate need of an injection of fresh ideas and technology, and that comes with younger talent. Place young people in positions where their work is impactful, listen to their ideas, and make sure they know that they are heard and valued.
Insurance may not be the most attractive field for the best and brightest, but it doesn't have to stay that way. We need a branding refresh in this industry, and the companies that best communicate an impactful mission and build a corporate culture around it and their employees will be rewarded. Your employees can be your greatest asset or your greatest downfall when it comes to recruiting - the companies that focus on their employees will find brand advocates within their ranks and candidates at their door.