10 August 2015 Insurance

Insurers meeting hiring targets but failing to attract younger execs

The insurance industry is currently meeting its hiring needs, but is having a challenging time attracting younger agents.

This is the finding of a quarterly survey by AM Best which looked at talent management in the insurance industry, as well as capital management and an increase in merger and acquisition (M&A) activity.

It found that nearly 90 percent of survey respondents had been able to fulfil their hiring targets over the last 18 months, regardless of the industry segment.

However, results also showed that the industry is finding it tough to attract younger agents. The main age for existing agents is 44-55 years of age, at nearly 70 percent of agent population. Less than 20 percent are under the age of 44 years.

The rating agency also reported that just over 40 percent of respondents believe the industry is not entrepreneurial enough to attract prospective candidates.

Additionally, thirty percent of respondents said that the main driver of M&A activity for 2015 was the strategic use of excess capital. Twenty-six percent also named growth targets as a main driver.

“The health segment is strategically using its excess capital to increase business diversification, partially to meet targeted growth objectives. The property/casualty and life/annuity segments also viewed the strategic use of excess capital as a main driver in addition to meeting targeted growth objectives,” said the rating agency.

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