Future-proof talent by selling insurance careers
Attracting and retaining talent is the biggest challenge that the reinsurance and insurance industry faces.
The insurance industry is still not one that young people aspire to career-wise—so the industry has a responsibility to change the narrative and tell compelling stories that will change perceptions and future-proof the industry.
This is according to Mark Lomas, head of culture at Lloyd’s. Changing perceptions about the industry remains a major challenge, he said. The industry has never done this well enough—but that does not mean it cannot be done.
“We have yet to effectively communicate the story of specialty insurance, emphasising accessibility and its departure from the elitism often associated with other financial services career paths,” he told Intelligent Insurer.
“We haven’t highlighted the fact that starting salaries are competitive, work-life balance is favourable, and that there are prospects for international growth. We haven’t adequately shared stories of individuals who, starting from school, found their way into this field and eventually climbed the career ladder to become CEOs.”
Changing the narrative
Lomas said that while the sector has made considerable efforts to tackle these challenges, there is still work to be done in effectively communicating the range of career opportunities available to young people entering the market. He added that while gender representation has seen improvement since 2019, the industry must focus on achieving parity in talent and addressing challenges specific to certain disciplines.
Diversity data creates a detailed window into the make-up of a business. It can signal where initiatives are succeeding (retention of women in senior positions, for example) or where efforts might need to be focused for better future outcomes.
According to Lomas, improvements have been seen in finance and actuarial roles while underwriting roles have regressed when it comes to diversity metrics. Given that underwriting is the beating heart of Lloyd’s, it is essential to reassess how the industry attracts, trains, and retains talent in this field. Traditional methods won’t suffice; instead, re/insurers must adopt innovative, network-based recruitment strategies.
“We must explore inventive approaches to bring individuals into underwriting.” Mark Lomas, Lloyd’s
“The job descriptions of even entry-level roles need to be looked at. Asking for experience in insurance up front is going to be difficult for someone who is just starting their professional life. That will be a barrier,” he said.
“We must explore inventive approaches to bring individuals into underwriting and creatively develop their skills across various lines of business. This stands as a significant challenge that the market and the broader sector must address in the coming years.
“Continuing with the same approach we’ve followed for the past 20 years and expecting different results won’t benefit us. We need to shift our focus, make talent aware of the opportunities and alter selection processes to achieve the desired outcomes.
“Our goal is to cultivate a sustainable market with greater diversity at its core to facilitate a more robust and sustainable international business. Diversity is not just an endpoint; it’s a means to these outcomes,” said Lomas.
Diving in to insurance
The Dive In Festival is one of the world’s largest diversity, equity and inclusion events to support the development of diverse and inclusive workplace cultures. Lomas stresses how important it is—and how proud he is that the industry created it.
“The Dive In Festival is the brainchild of the Inclusion@Lloyd’s initiative. It has often been referred to as ‘the Glastonbury of the insurance industry’,” he said.
Now on the brink of its 10th anniversary in 2024, the festival has enabled continuous promotion of diversity, equity, and inclusion. Dive In 2023 saw record global participation with attendees from 84 countries, and it continued with the format of combining in-person and online events. The festival hosted more than 135 events in 37 countries across six continents, with more than 500 speakers.
This year attendees to Dive In had the benefit of gaining Continuing Professional Development certification, which resulted in a 64 percent boost in first-time attendees.
The 2023 festival focused on driving innovation in insurance under the theme “Unlocking Innovation: The Power of Inclusion”. The range of global events included a range of new topics, including artificial intelligence, inclusion, and domestic abuse. The festival has also over the course of its nine-year existence reached into broader financial services that relate to insurance, such as the legal sector.
“Like all good things, evolution is crucial,” said Lomas. “This year, we’ve expanded the festival to include more opportunities for people. You can easily sign up at no cost. This option is available year-round, offering thousands of opportunities for volunteering and outreach. This is a significant step in changing the narrative.
“But it is not enough to focus solely on outreach without addressing how we recruit and select talent. In the context of underwriting, we need to carefully consider the pathways into this field. Do we prioritise the best and brightest, or do we create entry-level roles and train individuals to become underwriters? A comprehensive approach is crucial for sustained success.
“Some firms are excelling in gender diversity and underwriting by adopting innovative approaches to train underwriters.”
The Dive In Festival continues to pilot a number of successful initiatives. The Dive In to Insurance programme, introduced last year, has made significant strides by reaching students around the world during its pilot phase. This programme serves as a foundational step in building a crucial pipeline for the future.
This year also marked the introduction of Dive In to Reverse Mentoring, designed to facilitate connections between leaders across diverse segments of the global Lloyd’s Market and individuals at all levels. The goal is to encourage the sharing of experiences, perspectives, and learning across the industry. The initiative aims to promote new viewpoints and skills, contributing to the growth of diversity and inclusion within the sector.
The programme has garnered participation from individuals on every continent. This facilitates connections between junior professionals globally and leaders across the market, creating meaningful and impactful relationships.
The programme empowers the new generations entering the insurance workforce, allowing them to contribute to and drive changes in societal norms. Recognising the need to adapt working practices, culture, and ideas. Reverse Mentoring is seen as a catalyst for greater diversity and inclusion, fostering growth and innovation in the industry.
“In response to the evolving landscape, it is encouraging to see that some employers in the market are adopting innovative pathways into underwriting. Rather than exclusively seeking experienced underwriters, they are taking a forward-thinking approach to address the potential limitations of a narrow talent pool.
“Clarity on pathways and support mechanisms are now being emphasised, leading to encouraging growth, increased interest, and the evolution of networks,” Lomas explained.
It starts from the top
The positive trajectory is underscored by a notable increase in the participation of senior managers and leaders in Dive In for the first time. Sustained success necessitates heightened leadership accountability. Prioritising talent maturation and succession, especially with a diversity focus, is identified as a key objective.
Lomas emphasised that effectively addressing the diversity and talent pipeline for underwriting is crucial for achieving these goals and positioning the industry for a spectacular future.
In an environment where costs are on the rise, emphasising sustainability becomes crucial and organisations that prioritise the future-proofing of their talent pools, particularly in underwriting, position themselves to attain a competitive advantage over time.
“This collective commitment not only benefits individual organisations but also contributes to the broader and enduring success of the market as a whole,” he concluded.
To find out more about Dive In, visit www.diveinfestival.com.
