Meeri Savolainen, CEO of Berlin-based insurtech company INZMO, is leading the charge in transforming the rental sector and making a mark in the European insurtech industry. With almost a decade of experience working alongside partners from traditional insurance firms, Savolainen has observed the challenges posed by the looming retirement of the industry’s workforce and the need for digital transformation.
The insurance sector is facing a unique challenge as a significant portion of its workforce is nearing retirement age, potentially creating a knowledge vacuum that threatens critical skills and insights. In the U.S. alone, nearly 400,000 employees are expected to retire by 2026. Similarly, European insurance intermediaries have an aging workforce, with France and Italy having older average ages. Brokers are also facing challenges, with high rates of vacancies remaining unfilled for extended periods.
As the industry looks to reinvent itself for the next generations, attracting new talent has proven to be a challenging task. Millennials and Gen Zers have limited knowledge and interest in pursuing careers in insurance, with many finding the industry boring or outdated. Additionally, the changing trends in homeownership, car ownership, and sustainability practices are further distancing younger generations from traditional insurance products and services.
To bridge this knowledge and interest gap, the industry needs to rethink its approach to employee value proposition and image. Making insurance more appealing and accessible by highlighting its innovative and tech-forward aspects is essential. Implementing strategies such as maximizing digital platforms for recruitment outreach, prioritizing diversity, equity, and inclusion, and offering competitive benefits and flexible work arrangements can help attract and retain younger talent.
In addition to attracting new talent, effective knowledge transfer from retiring professionals to the next generation is equally crucial. Traditional mentorship programs may not be sufficient in navigating the rapid technological changes within the industry. Leveraging AI to create intelligent knowledge bases and fostering intergenerational collaboration opportunities can help accelerate the development of new talent and ensure continuity within the workforce.
As the insurance industry grapples with digital transformation and demographic shifts, embracing humility and adaptability will be key to overcoming challenges and driving growth. By attracting and nurturing top talent, leveraging AI for knowledge transfer, and fostering a culture of continuous learning, the industry can build a workforce ready to tackle the evolving landscape and meet the demands of the future.
