The Insurance Industry's Talent Gap and Where We Go From Here

• Published date: 01 March 2012
• Date: 01 March 2012
• Author: Cassandra R. Cole,Kathleen A. McCullough
• DOI: http://doi.org/10.1111/j.1540-6296.2011.01212.x

Risk Management and Insurance Review

C

Risk Management and Insurance Review, 2012, Vol.15, No. 1, 107-116

DOI: 10.1111/j.1540-6296.2011.01212.x

THE INSURANCE INDUSTRY’STALENT GAP AND WHERE

WEGOFROM HERE

Cassandra R. Cole

Kathleen A. McCullough

ABSTRACT

There is concern among insurers and related firms in the United States and

abroad that there will be a shortage of skilled insurance professionalsin the next

few years as current workers retire. Though therehave been discussions among

insurers, organizations, and academics as to how to address this issue, until

recently, each group has been primarily working in isolation. The Insurance

Education & Career Summit, which took place in September 2011, brought

together 110 individuals across these groupsfor the purpose of creating a unified

strategy to both attract and retain skilled workers to the insurance industry and

work to create the next generation of insurance executives. This article provides

a brief background on the talent gap issue. We also discuss its potential impact

on the insurance industry. Finally, we summarize the main obstacles identified

by Summit participants to both attracting and retaining skilled workers as well

as the strategies developed to overcome these obstacles.

INTRODUCTION

As the Baby Boomer generation begins to retire, it is estimated that there will be a

lack of talented individuals with the needed knowledge and skills to fill the void. In

an environment where firms are potentially competing for highly skilled workers, the

importance of being able to retain quality employees also is a concern. The lack of

employees available to fill the impending demand of firms has been termed the “talent

gap.” While estimates of the size of the talent gap vary,it has been identified as an area of

concern across a wide variety of industries including education, utilities, and financial

institutions, such as accounting, banking, and insurance firms.

The talent gap issue also stretches beyond the United States into other developed and

developing nations; however, the cause of the talent gap varies. In developed countries,

the talent gap is being driven primarily by the aging workforce and the impending

Cassandra R. Cole is an Associate Professor at College of Business, RBA 525, Florida State Univer-

sity; phone: 850-644-9283; fax: 850-644-4077; e-mail: ccole@cob.fsu.edu. Kathleen A. McCullough

is an Associate Professor and State Farm Insurance Professor of Risk Management/Insurance,

College of Business, RBB 150, Florida State University; phone: 850-644-8358; fax: 850-644-4077;

e-mail: kmccullough@cob.fsu.edu. This article was subject to double-blind peer review.

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