The insurance industry is currently facing a significant recruitment shortage, that is only set to get worse in the coming years. This crisis presents a unique opportunity for students to push insurers to do better. Whilst the industry grapples with this talent crisis, we can leverage this position to urge insurance companies to stop underwriting fossil fuel expansion.
The talent crisis, explained.
The recruitment shortage in the insurance industry is severe: Aviva reports that over 70% of insurance brokers have vacancies with close to 25% of these being unfilled after 4 months of listing. In 2022, insurance industry vacancies went up by an impossible 121% and this trend isn't set to stop. Critically though, some of this crisis' strongest drivers are linked to young people and their employment choices after university.
Let's break down some of the biggest causes:
1. An ageing workforce.
The insurance industry has a significant number of employees nearing retirement age, particularly from the Baby Boomer generation. As these seasoned professionals retire, the expertise and institutional knowledge they possess leave with them, creating a substantial gap that the industry struggles to fill with younger talent.
“The patterns of talent shortage are a screaming blinking light that there is a massive retirement bubble. There has to be a dramatic reconsideration of the type of talent that companies are seeking. It’s deeply concerning how poorly prepared organisations are to face this.” - Anna Beninger, AXA
The impact of this ageing workforce is twofold. Firstly, it creates an immediate shortage of experienced professionals who can mentor and train the next generation. Secondly, it puts pressure on the industry to attract younger talent who may not initially see insurance as a desirable career path. This demographic shift necessitates a proactive approach to make the insurance sector more appealing to younger candidates.
2. Perception issues
The insurance profession has long struggled with a perception problem. Many students view the industry as uninteresting or lacking in excitement compared to other fields like technology or finance. This perception problem is a significant barrier to recruitment for insurers.
“Only 4% of millennials have evinced interest in the insurance sector. Our industry is not sexy." - Anna Beninger, AXA
To address this, the industry has resorted to rebranding itself to highlight the exciting opportunities it offers. For example, the role of insurance in managing emerging risks like climate change is often a go-to selling point. Insurers are also upping their tactics by rejuvenating their communications strategies - some even going as far as paying TikTok influencers to target young people.
3. Cultural diversity.
Insurance companies are very white, very male, very posh places. Historically, the industry has lacked diversity, making it even more difficult for them to attract a broad range of talent. Famously, Lloyd's of London, the UK's insurance market, only let women even enter its floor from 1973 onwards - and the culture hasn't changed much since then. Many news outlets report a thriving laddish and sexist culture of harassment. In 2023, reports made to MPs about conduct within the insurance industry led to a Parliamentary inquiry into harassment within the sector. Their Sexism in the City report concluded:
"Overall, there has been a disappointing lack of progress on sexual harassment and bullying, including serious sexual misconduct. Despite the best efforts of some far too little progress has been made and serious problems which should have been rooted out still persist."
Why should students care?
This talent crisis is a perfect leverage point for students who want to advocate for environmental responsibility. Insurance companies play a crucial role in providing insurance coverage for fossil fuel projects and their expansion. Without their financial backing, the majority of these environmentally damaging projects would struggle to get off the ground. By targeting these companies during their time of vulnerability, students can push for significant changes in their underwriting policies.
Here's how we can use the talent crisis to advocate for the insurers to desert the fossil fuel industry:
1. Raising awareness.
Organising information campaigns is a great way to educate peers and the public about the insurance industry's role in supporting fossil fuel projects. This can include hosting events, creating informative social media content, or writing articles for local student press. The goal is to make people aware of how insurance companies enable fossil fuel projects and why it is crucial to push for better policies. Airing insurers' dirty laundry creates additional risk for the industry, accentuating their recruitment crisis.
2. Removing gateways.
Insurers love recruiting students face-to-face - and what better place to do it than on campus? It is well worth engaging with universities' career departments to ensure that the worst offenders aren't hiring near you. Insurance companies are clinging onto any promotion they can get and discouraging this promotion means we hit them hard. Instead, careers services could prioritise companies with a social purpose which put sustainability first and foremost. By addressing both ends - the companies and the institutions that feed them talent - students can disrupt the sector's recruitment model.
3. Engaging with insurers.
Communicating with insurers as they are trying to hire students is a great way to directly feed back on how important sustainability is to students. It's one thing for them to read about students caring about the environment from research, and another to directly hear it from students' mouths. Asking questions about fossil fuel policies or confidently indicating not being willing to work for companies that promote their expansion are key ways to force insurance companies to change their ways of working.
Let's move!
Students have historically been at the forefront of social change, and this issue is no different. The insurance industry's recruitment shortage is a problem for them, but it's an opportunity for us. By organising, educating, and advocating, students can turn this crisis into a catalyst for meaningful environmental change.
Ready to make a difference? Join the movement to Insure Tomorrow!