The Skills Shift: Preparing Insurance for the Next Generation

At a time of rapid digital transformation, the need for human skills has never been more pressing.

However, the insurance sector faces a skills shortage that requires industry leaders to rethink their approach to attracting and retaining talent.

How can they fill the gap? Research from Gallagher Bassett shows 92 per cent of Australian insurers believe the shrinking talent pool is having a moderate-to-significant impact on their ability to grow and manage claims efficiently.

In New Zealand, 57 per cent of employers in the sector cite insufficient skilled professionals. In South East Asia, rapid digital transformation is outpacing workforce readiness, while demand for risk management, compliance and technology skills in China is outstripping talent supply.

Brian Mok, Managing Director, Asia, at specialist recruitment firm The Insurance Group (Asia) Limited, says rapidly evolving technology is helping to fuel demand for technical skills across the region.

“We have observed that highly technical positions, such as actuarial, risk management, data analysis and business development positions in agency, distributions and broking are still very much in demand,” he says.

“Artificial intelligence is a fast-growing area, and companies are looking to hire talents in this area to drive different automation projects, such as in claims and underwriting.”

Talent trends across the region

The skills gap in the insurance profession is driven by a confluence of trends. The aging population is among the key challenges, with almost 30 per cent of the insurance workforce in Australia set to reach or exceed retirement age by 2030.

Kavita Mahant, Associate Partner, Talent Solutions, Southeast Asia at Aon, points to factors such as evolving business models, as well as new skill requirements in areas such as data analytics, cyber security and advanced underwriting techniques.

“Younger professionals often perceive insurance as less dynamic compared to other sectors, limiting new entrants,” says Mahant. “Aging workforce and retirements further exacerbate the talent gap, and limited training pathways and slower upskilling contribute to the shortage.”

Mahant adds that the insurance industry is undergoing transformation, shifting from traditional risk carriers to technology-driven solution providers.

“AI-powered automation is streamlining core operations, reducing costs and improving efficiency,” she says. “Embedded or ‘invisible’ insurance within digital platforms is changing distribution and consumption patterns.

"Climate-related risks are challenging traditional underwriting models, requiring new approaches, and the move toward lifelong value creation in a wellness-driven economy is reshaping customer engagement and product design.”

Mahant also observes that the changing nature of roles is adding to the skills challenge. “Many roles now require a blend of insurance expertise, technology skills, and regulatory knowledge, making them challenging to fill,” she says.

Key examples include actuarial specialists – with IFRS 17 implementation, firms need actuarial professionals who can interpret, implement, and maintain the new standards. Rising cyber threats have also increased demand for underwriters who can assess and price cyber risk portfolios.

“As insurers expand into the wealth client segment, healthcare and digital services, they require product designers, data modelers and engineers to create innovative offerings.”, says Mahant.

Rising to the challenge

The Insurance Council of Australia recently released the general insurance industry’s first Talent Roadmap, a six-year outline to tackle the industry’s talent shortage by uplifting capability, diversity, equity and inclusion across Australia’s insurance industry.

It notes that improving the industry’s DEI performance has the potential to play a central role in addressing the talent shortage confronting the sector, and that stronger partnerships with universities and vocational institutions through annual recruitment drives may help to attract new candidates to the industry.

Tanith Jones, Chief People Officer at Gallagher Bassett, encourages employers to explore strategies to not only attract more talent to the industry, but to also retain existing employees.

“Our ‘The Carrier Perspective: 2025 Claims Insights’ whitepaper reported a 54 percentage-point decrease in the use of competitive salaries as a retention tool, and 74 per cent of Australian respondents highlighted enhanced benefits packages, as their top strategy for managing turnover.”

Jones adds that understanding what matters most to employees will go a long way towards increasing job satisfaction and increasing long-term retention.

“Non-monetary benefits like wellbeing programs, flexible work arrangements, professional development allowances and generous paid time off are becoming expectations of prospective workers,” she says. “Establishing a positive environment and culture are essential to a productive workplace.”

Last year, Gallagher Bassett celebrated more than 250 internal promotions, which Jones says underscores its investment in staff growth and the maintenance of high professional standards.

Its GB Claims Academy is also integral to developing expertise in claims handling and customer support, offering a fully funded Cert IV in General Insurance for front-line staff.

“Experience shows that having satisfied and competent staff naturally leads to enhanced loyalty and retention,” she says.

More than money

Salary growth may help attract new talent in the short term, but Mok points to the uncertain economic outlook in markets like Hong Kong. “It is a challenge for companies because of the tight budget control,” he says.

Mahant also notes that higher salaries for insurance roles are being found outside of hubs like Hong Kong and Singapore.

“This trend is driven by increased investment and attention from insurance firms in locations like Indonesia, Malaysia, Philippines, South Korea, Taiwan, Thailand and Vietnam over the past two years, as they respond to emerging market opportunities,” she says. “In contrast, Hong Kong and Singapore are more mature markets, leading to more modest salary growth.”

However, Mok says candidates are looking for more than money, and are being more selective in who they’d like to work for.

“So, for key positions with a very limited talent pool, such as actuarial roles, hiring companies need to think out of the box to offer something so that the candidates feel they are valued, instead of just following the so-called ‘market norm’ of giving a 10–15 per cent salary increment.”

A compelling employee experience

Mahant says Aon’s talent attraction and retention strategy focuses on creating a compelling employee experience built around growth, purpose and flexibility.

For example, its dedicated Learning & Development Days provide focused time for upskilling and career advancement, and it invests in holistic wellbeing programs to support employees’ physical, mental, and financial health.

“Opportunities to work on global projects and cutting-edge solutions in areas like data analytics, risk advisory and human capital also enhance career progression,” she says.

“Structured learning programs, certifications and leadership development initiatives also help employees build future-ready skills.”

As the industry continues to evolve, new approaches to talent attraction and retention are required to meet current and future needs. Mok says this includes exploring benefits outside of salary.

“Candidates are hoping to have more flexible, hybrid working arrangements,” he says. “But I know that some large companies are starting to tighten their working-from-home policy, by changing these arrangements from working two days to one day at home a week.

“Some candidates may not see that positively, as they have been used to hybrid working arrangements in the past few years. If companies are flexible on this, it will be attractive to many candidates.”