As a significant portion of the insurance workforce approaches retirement, the industry grapples with a growing talent shortage, particularly in critical areas requiring advanced skills. Sharon Teo, Chief Transformation Officer at MSIG Insurance, emphasized the urgent need for upskilling to meet these challenges.
Teo identified three pivotal areas of focus for developing necessary skills in today’s general insurance landscape. The first is sustainable finance, where there is an urgent need to enhance knowledge among current professionals. “Roles like accountants must familiarize themselves with ESG disclosure and reporting requirements, while underwriters need to grasp the implications of climate change on sectors such as renewable energy and electric vehicles to effectively underwrite associated risks,” she explained.
Digital and cyber risks have also surged in importance, necessitating skill development to better assess and manage these emerging threats. Furthermore, the rise of generative AI (Gen AI) poses additional challenges and opportunities. “Gen AI can conduct competitor research, write code, and even manage customer inquiries,” Teo noted, underscoring the need for skills in crafting effective prompts and utilizing advanced AI tools to enhance daily operations.
The skills gap extends beyond current employees; newcomers to the industry also lack essential expertise. “We must prioritize building skills in Gen AI and sustainable finance,” Teo asserted.
Despite efforts to address these gaps, retaining younger talent remains a challenge for insurers. Teo pointed out that Millennial and Gen Z employees often expect rapid career progression, while the insurance field requires a more gradual, craft-like approach. “Younger professionals frequently accept better offers before mastering fundamental skills in underwriting, risk management, and claims assessment,” she remarked.
In conclusion, Teo stressed the importance of managing the expectations of the next generation of talent. By providing meaningful development opportunities and fostering a sense of purpose in their work, the industry can tackle retention challenges and bridge the skills gap that threatens its future.
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