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​Why Millennials are Avoiding the Insurance Industry

Why what used to be an valid career path is less desirable today.

4Jan

The insurance industry is a critical element in the national economy. Without the underwriting services, risk reduction, statistical forecasting, and other aspects of the insurance business, it would be quite hard to live and work in the US. Furthermore, the careers in insurance tend to be both challenging and rewarding, especially for those with a mathematical bend. However, the young workers entering the workforce have expressed very little interest in the insurance industry. This is a real problem, because the average age of workers in insurance is rising rapidly, and without an influx of young recruits, the pool of qualified employees will shrink dramatically. In this post, we will examine why millennials do not seem to be interested in working in insurance and how it came to be this way.

The First Impression

The initial impression that anyone has of their job prospects matters a lot for which careers they decide to pursue. If they believe that an industry is dull or uninteresting, then they won't want to work there. This appears to be the root for much of the lack of interest young workers have in insurance. They view it as an old industry that doesn't have a rewarding set of goals, an engaging work environment, and the perks they have come to expect in other fields. There are two things driving these impressions. First, millennials do not seem to have a well-developed understanding of the actual day-to-day experience of working in insurance. Next, the companies themselves are not used to structuring compensation and presenting offers in a way that appeals to millennials. Both of these are essentially marketing problems, and the good news is they are both solvable. There's nothing different about the younger generation that makes them unfit for working in insurance. Insurance companies just need to do a better job at sharing their vision.

The Image Problem

Insurance companies need to do a better job at explaining the roles at their companies and what makes them so attractive. There are a few aspects of the millennial job market experience that are unique, such as the high rate of job-hopping, but the real issue is that they simply do not know or have the wrong impression of what it means to work in insurance. Those who are involved in insurance know how rewarding it can be, but millennials do not have that experience. As a result, their impressions of the industry are that it is static, dull, repetitive, or even depressing. This is a problem that insurance companies can solve with better outreach. Building personal connections by sending representatives to campuses for lectures and Q&A sessions, for example, will help to show young students and grads that there is a lot of dynamism and value in insurance work. That is not to say that changing this negative impression will be easy, but the basic outline of the solution is clear: work to show millennials that insurance is a good place for a career.

Reeling Them in

Millennial culture has changed the job market. The rise of high-profile tech jobs with legendary perks have shown that sometimes, offering compensation other than money can be a big draw. The most basic example of this is in health benefits, which are increasingly sought-after perks. Related benefits like maternity and paternity leave, child care, gym memberships, and other health-related perks attract millennials because they feel more valued and more productive. They don't just want an office - they want a place to feel comfortable as they work. In addition, they want to know that their career will be upwardly mobile and contribute real value to the world. This is something that recruiters and HR can emphasize during the hiring process. Young people view their employers as just one part of a larger global community, so they want to feel that their work is benefiting that community as well as advancing their own careers.

It is good to know that it is possible to bring in young people. Right now, their interactions with insurance are mostly limited to checking insurance quotes online. A little bit of legwork will show them how much they stand to gain from working in insurance.

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