Insurance firms look to new talent strategies to fill projected “big hole”

Speaking at the East Asian Insurance Congress (EAIC) in Hong Kong on 25 September, Franz-Josef Hahn, CEO of Hong Kong-headquartered Peak Re, warned of the potential for a “big hole” in the insurance industry as many baby boomers retire, adding that addressing workforce shortage and attracting new talent is becoming critical for the sector.

Hahn explained insurers rely heavily on experienced employees with specialised technical skills and deep institutional knowledge. However, the upcoming retirement of this generation risks draining expertise from companies.

“We are already saying in each and every town in Asia, but also beyond, that we are lacking talents when the boomers go for retirement and that builds a big hole,” Hahn says. “It’s not only that we have to hire the people who we’ve had difficulties to hire today, but we need to build up in the next nine years by 1.2 million more people for our industry here in Asia. That’s a big and tall order, but it’s the same in America, in Europe, and everywhere else,” he adds.

A more diverse workforce is key to overcoming these challenges, according to Hahn. Traditional recruiting from limited geographical areas will no longer suffice; insurers must broaden their search to attract global candidates with diverse skills, backgrounds and perspectives.

“With the boomers all going into retirement, I think we need to think much broader…The boomers may not want to work 100% anymore. We don’t want to have the boomers hanging around in leadership positions, but we want to make sure that they may get a consultancy job, a part-time job, or that we retain them to 100%,” said Hahn.

Demographic trends and competitive talent markets necessitate new hiring strategies, said Hahn. Peak Re, like many businesses, has faced struggles retaining staff during difficult periods. But Hahn credits their unique culture of transparency, entrepreneurial spirit and community engagement with helping them hire stronger replacements.

Peak Re’s 150 employees from 22 nationalities have been integral to their success, according to Hahn. The Hong Kong-based company achieved an incredible profit per head of US$1.5 million last year, showing how diversity increases productivity. Their online learning platform also allows staff to continuously develop new skills rather than hiring externally.

“Talent development cannot be that we bring somebody in today, and in five or 10 years’ time, they are doing the same job again. We have to develop them broadly. We have to allow them to move across the organization, taking different jobs,” said Hahn.

Redefining insurance jobs

The insurance industry has long had an image problem in attracting fresh talent due to perceptions of it being static or outdated. The debate of how to reshape such perceptions and attract top talent to the rapidly changing sector is front and centre in another panel discussion on the same day.

Moderated by Eleanor Hartmann, Senior Vice President of Sales, Marketing and Strategy Execution (Asia Pacific) at Guy Carpenter & Company, five industry leaders from Singapore, Hong Kong, Taiwan and Cambodia discussed how technologies, social impact focus and talent development are making insurance dynamic and purpose-driven, before exploring new initiatives to engage the next generation.

Shahrildin Jaya, Managing Director and CEO of Syarikat Takaful Brunei Darussalam, got into insurance by chance after the Asian financial crisis and stayed for the fulfilling goal of helping people through claims and risk mitigation.

Now focused on culture and values fit when recruiting to retain talent, Jaya underscored the importance of passion for customers. “An organization’s culture and values are very important to make sure that we retain the right talent that is aligned to our cultures and values,” he said.

Getting her start in insurance to support families after a classmate’s tragic death, Lillian Lai, President of Tokio Marine Newa Insurance, highlighted using gaming and assessments to identify talent traits and interests across departments.

“There’s a lot of ways that we can let the young generations participate and feel interested in [joining] the industry,” said Lai. One of the initiatives she promotes is rotational opportunities across Tokio Marine’s 45-country network.

Ronak Shah, CEO of QBE Insurance (Singapore), emphasized that cultivating internal talent is cheaper than constant external hires. He promotes learning and coaching programs, flexible arrangements and well-being initiatives to boost retention in his company.

“Now, the kind of people that we’re looking for and the kinds of roles that are there, it’s not just a straight-out underwriter or a straight-out broker. It’s ‘I’d like to look for a data scientist. I’d look like to look for somebody that’s going to drive an experience with technology,’” said Shah.

Sythan Prou, CEO of Forte Life Assurance (Cambodia), noted insurance is new in Cambodia, so focusing on economic and social impact inspires pride in roles. Forte Life, for its part, insures half of Cambodia’s major projects and economy. “We’ve been putting so much effort and investment in training and development, so this is one point how we are able to attract talent,” said Prou.

Shah echoed the life-changing impacts of insurance roles. “Once you get in and you understand what it’s all about. The lives that you’re helping, the companies that you’re trying to support, the communities that you’re trying to enhance, the social causes – everything that comes along with insurance,” he said.

“We are all giving back, directly or indirectly in our professional lives, and I don’t think it gets better than that,” said Shah.