The Indian insurance industry is predicted to experience a shortage of talent very soon, and it could assume alarming proportions, affecting the overall growth of the sector. National Insurance Academy’s Dr Tarun Agarwal sketches a roadmap to solve the problem.
By Anoop Khanna
India has set a target insurance for all by 2047. To achieve this, the insurance industry requires highly skilled, motivated and industry-ready professionals. However, the industry is currently facing a significant talent shortage. According to a report by KPMG, the Indian insurance industry will require an additional 175,000 professionals by 2025. Asia Insurance Review spoke with National Insurance Academy director Tarun Agarwal about how can the industry address this.
Insurance is not attractive
Dr Agarwal said a career in insurance is generally not considered. Also, insurance career paths are not as obvious as the rest of the financial industry. “We need to show young people the attractiveness of a career in insurance and how meaningful and rewarding an insurance career can be.”
There are several reasons for insurance not being an attractive choice for career. Firstly, many people are not aware of the opportunities for growth in the insurance industry or they may have misconceptions about the industry.
Youngsters are often attracted to careers that are perceived as more exciting or high profile. Unlike investment banking or asset management, insurance does not have the same level of glamour and prestige.
Dr Agarwal said, “The magic to get more youngsters into the industry lies in looking at what their motivators are. The younger generation basically wants an opportunity to learn and contribute. They want engagement and collaboration.
“Insurance is a complex field with maze of products, each with its own intricacies. Understanding the various insurance products, their terms and how they interact with different risk factors is often a difficult task and thus can make things challenging for newcomers.”
He said many prefer an industry like banking or product based like fast moving consumer goods and durables, where there is natural demand and not push-based selling.
Correcting the wrong impression
Asked if the insurance industry and academic organisations can collaborate to correct the impression and also improve their own branding, Dr Agarwal said, “Collaborative efforts can promote the importance of insurance by improving awareness about the insurance industry job roles, opportunities for growth and career progression.
“We in the industry need to create awareness that insurance can be an exciting choice for people from different backgrounds, interests and skills. These could be engineering, economics, data science, fine art, private investigation, cyber security, climate change and so much more,” said Dr Agarwal.
Academics can also work with industry professionals to develop and update insurance courses, matching with global requirements and ensuring that they align with the current industry needs and trends.
Industry-academic partnerships by way of internship programmes can also provide students with practical experience and knowledge about the industry and give them market exposure, making the field more attractive and less daunting. Communicating the inherent human nature of insurance and the vital purpose it serves is very important.
Educational infrastructure
Speaking about the educational infrastructure for insurance academics, Dr Agarwal said, “Many universities and colleges offer traditional insurance and risk management courses that lay a foundation for industry-specific knowledge but there is need to revise, re-revise the curriculum and teaching pedagogies which should be aligned with current industry needs and trends.”
He said, “The industry is evolving rapidly with technological advancements and changing customer preferences; hence, educational programmes should reflect these changes. Some lines of business, being highly technical in nature, need professionals with specialised knowledge, enabling them to navigate complex risk assessment, data analytics and emerging technologies essential for modern insurance practices.”
Dr Agarwal said, “Insurance has always been a people’s business. We don’t need technical skills alone, we need soft skills too. The industry values soft skills like communication, customer service, networking and negotiation. These skills should get equal emphasis in educational programmes.
“Also, there is a growing emphasis on interdisciplinary studies to prepare students for complex, evolving risks. Academic research should be increasingly focused on understanding and mitigating contemporary risks,” he said.
Expectations from the industry
Speaking about the expectations of the young generation from the industry, Dr Agarwal said, “The insurance industry must adopt the latest technology and commitment to innovation, as young talent is attracted to opportunities for working with cutting-edge technologies. They seek work environments that leverage technology for efficiency and effectiveness.
“Moreover, young professionals value work-life balance and flexible work arrangements and many insurers are offering remote work options and flexible schedules. The younger generation expects ongoing learning and development opportunities. It is imperative for the insurance industry to invest in training, mentorship and career development programmes for the young brigade.”
Mentioning the importance of diversity and inclusion, he said attracting diverse talent should be a priority for the industry. The younger generation values diversity and equal opportunities, hence, insurers should create inclusive workplaces.
Many educational institutions are increasingly fostering partnerships and engagement with insurance companies, reinsurers and related organisations. This collaboration takes various forms, including curriculum development with inputs from industry professionals, internship and guest lectures and job placement services.
He said, “Industry-specific certifications are also being incorporated into academic programmes to ensure that graduates possess the necessary knowledge and skills as they enter the industry.
“Collaborative research initiatives are addressing contemporary industry challenges, such as cyber security, climate change, and InsurTech. These interactions are vital for bridging the gap between academic theory and industry practice, ensuring that students are adequately prepared for the evolving demands of the insurance sector.
“The growth potential of the industry is directly linked to the potential for an employee to grow. Hence, training and reskilling programmes in-house can address the issue of attracting and retaining talent in the industry.”
Is compensation a factor?
He said while the industry acknowledges the importance of competitive compensation packages to attract and retain young talent, the war for talent cannot be won by salaries alone.
He said, “The industry can attract young people from diverse backgrounds with varied skill sets - and then retain them by focusing on their development and opportunity. The sector has witnessed a huge overhaul in recent times, with the introduction of technology, in class of business, the so-called ‘tedious’ sector has now become highly dynamic and lucrative.”
A roadmap for the future
He said to attract the best talent, the insurance industry should undergo several major transformations that can include the following:
- Digital transformation: Embrace advanced technologies like AI, data analytics and automation to streamline processes and provide a tech-driven work environment.
- Customised career paths: Offer flexible career paths, allowing employees to explore different roles and specialties, accommodating the varied interests of new talent.
- Professional development: Invest in continuous learning and development programmes to upskill existing employees and attract those seeking opportunities for growth.
- Diversity and inclusion: Foster diverse and inclusive workplaces, ensuring that the industry is representative and welcoming to individuals from all backgrounds.
- Mentorship and guidance: Implement mentorship programmes to help newcomers navigate the industry and build relationships with experienced professionals.
- Rebrand and market: Promote the industry’s significance and career potential through effective marketing and branding efforts.
- Competitive compensation: Offer competitive compensation packages and benefits to attract and retain the best talent in a competitive job market. A