Talent attraction and retention have, in recent years, been a concern across many sectors - a 2023 report by Aviva ranked it as the second-biggest concern across UK businesses. The insurance industry is finding it especially challenging to attract and retain talent. Workplace attrition reached 18% for some leading UK insurance firms in 2023, a trend that is expected to worsen as many older, experienced employees leave the workforce.
The insurance industry often finds itself in an uphill battle to attract talent. It has to fight against a stereotypical image as a dull and uninspiring field and compete for the most ambitious and talented professionals with other industries that have a stronger profile.
Perhaps nowhere in the insurance industry are these two factors more significant than in the London Market. This segment of insurance is often perceived as traditional and old-fashioned, and its location in the historic financial district of the City of London sometimes deters young professionals who might be tempted by the tech startups around Old Street, just a little further east.
Talent retention is another concern. Those who do join the industry are often tempted to switch to trendier careers that offer the chance to use the latest technologies and welcome creative thinking. This can become a self-fulfilling prophecy: if fewer innovative, driven people are attracted to the industry, that in turn can make the London insurance market less dynamic and cutting-edge.
Insurance is a stimulating, stable industry that deserves a better perception
The insurance industry may have an image problem, but it is far from monotonous. The London Market, in particular, can be really fascinating, as it specialises in underwriting extremely varied and niche risks. Indeed, we should not overlook its very innovative origins, even if that image has now faded. From insuring unique events to providing coverage for cutting-edge technologies, the scope is vast and ever-evolving. Its location might be a very competitive place for talent with many attractive companies and industries hiring nearby, but it can be a draw, too; ambitious workers from all over the world come to London for work.
The insurance industry overall has additional advantages. It is significantly more stable and reliable than many other industries and generally offers competitive compensation and benefits. But the question remains: what's missing?
The tech opportunity in the London Market: embracing modernisation amidst Blueprint Two
The London Market, with its long-held traditions and white-glove handling of unusual risks, can be slow to change.
However, this means that there is an opportunity in the London Market to leverage technology as a transformative force. Partnering with technology firms results in fresh ideas and creativity, bringing agility and a modern mindset to traditional insurance operations. To be sure, a new focus on technology helps insurers improve risk assessment, claims servicing, and overall decision-making. But besides the direct operational benefits, modernising the technological stack can do wonders for an insurer’s employee value proposition. Adoption of the hottest, most in-demand technological innovations such as artificial intelligence and advanced analytics can position the London Market as forward-thinking and enhance its appeal to professionals seeking a technologically progressive work environment.
The timing couldn't be better too, with many companies now re-evaluating their systems and actively embracing advanced technology in the context of Blueprint Two as well as other initiatives such as Lloyd’s Lab. This industry-wide push towards technological evolution provides a chance for insurers to showcase their commitment to innovation. Embracing this wave not only enables a more agile industry but also serves as a magnet for tech-savvy workers who will, in turn, drive even more innovation and change.
From chance to choice: making insurance enticing
In light of this technological transformation, it’s easy to envision a near future in which those currently working in fields as varied as AI-driven chatbots, UX design, or digital payments are increasingly tempted by insurance.
The London Market has the potential to become a desirable work sector that people want to brag about being part of - just like Big Tech. By embracing technology and fostering a culture of innovation, the industry can both meet the evolving demands of the market and also position itself as an exciting and dynamic career choice for the young and ambitious.
It’s often said that most people working in insurance end up there by chance, without really considering it a career choice. It’s time to turn this perception around.