Artificial Intelligence Helps Commercial Insurance Industry Reel in Fresh Talent

Artificial Intelligence - October 30 2019

As insurance companies seek to replace their aging workforce, new thinking and new approaches will be needed in order to lure the interest of the next-generation worker. Individuals born between the mid-1990s and early 2000s, dubbed Generation Z, have never known a non-digital world. They are the first generation of true digital natives. According to Bloomberg Analysis of the UN World Population Prospects, Gen Z makes up 32% of the global population which is approximately 7.7 billion.

As true digital natives, they are no stranger to the power of the internet and have an “always-on” mentality. They have fully embraced the availability of many on-demand services like Netflix, Uber, Airbnb, Amazon, etc. and think nothing of ordering goods and services online. Their use of social platforms to communicate with peers, employers, colleagues, family, and friends is prolific. And their perception of brands is heavily weighted on their customer experience with a brand, which is primarily digital and judged on fast response times and accuracy – they expect instant gratification.

According to a recent article in Insurance Journal, “Almost half of insurance industry professionals are over age 45, with 25% of the industry expected to retire by 2018. What’s more, there will be 400,000 open positions by 2020. And with only 4% of millennials interested in a career in insurance according to a survey from Hartford in the spring of 2018, reeling in the attention of the growing population of Gen Z will require insurance companies to examine and digitally transform how they do business today. Digitally savvy workers are prone to seeking opportunities with like-minded companies that have adopted digital practices and innovative technologies. 

Using Artificial Intelligence as Bait

Deploying cutting-edge technology like Artificial Intelligence (AI) can help insurance companies address the knowledge gap and manpower issues that they face as baby boomers prepare to leave the industry. AI can also increase the attractiveness of insurance companies among next-gen workers who are seeking roles at progressive companies that can provide them with a variety of new opportunities, new challenges, and continuous learning opportunities.

Let’s be real, nobody wakes up thinking about working in insurance, and no young, talented individual is going to be excited to work for an insurance company using software that’s a decade or two old. Gen Z-ers want to use modern technologies that are as efficient as any of the other applications they use every day.

Remember, these individuals were using iPads at the age of three and walking up to television screens expecting to be able to create a digital experience with the touch of a finger. Green screens and non-internet-based applications will not fly with these “swipe right” digital enthusiasts.

Pervasive manual processes typically found within underwriting and claims processing involve the rekeying of data into various systems, manually extracting data from forms, pushing paper, and reading through multi-page policies to verify policy language. These onerous manual tasks are sure to be an instant turnoff to digital natives.

Insurance companies adopting advanced technologies like Artificial Intelligence, Blockchain and Internet of Things devices to digitally transform their age-old processes will be at the forefront of the industry when it comes to recruiting and retaining new talent. Organizations that leverage these new technologies to make positive impacts on internal operational efficiencies, and the world, will have the best chance of being an employer of choice for Gen Z.

Social responsibility is very important to next-gen workers, so insurance companies who offer employees the opportunity for their career and work responsibilities to impact the world will snag their attention. Insurers who are reimagining business processes and practices and embracing cutting-edge technologies like Natural Language Processing and AI will be in a position to offer new variety in highly coveted job roles and business structure to Gen-Z-ers who are well-suited to take on these fresh challenges.

According to a study conducted by Marketo, 60% of Gen Z-ers want their career and everyday work responsibilities to impact the world and 76% said they are also concerned about the planet and are conscious of humanity's impact. Think brands like TOMS shoes and Patagonia who take social responsibility to new levels by giving donations based on product sales to fund services like access to clean water, glasses, and eye treatment, etc. With half of the world’s population not insured including 42% of the US, insurers who adopt AI can automate and streamline their operational efficiencies, reduce their overall costs, and offer more personalized solutions with the right coverage to help more people get insured. Presenting Gen Z-ers an opportunity to enrich the lives of others is sure to hook them.

Reeling in the Catch of the Day

Insurance companies that do not adopt modern technologies, are not prepared to digitally transform existing cumbersome processes and procedures will be perceived as stagnant. These firms will not have the ability to attract new talent, will struggle with growth, and will forfeit competitive advantage. Gen Z-ers will get frustrated in this less than desirable work environment that does not embrace the rise of new technologies, new mediums, and offer meaningful strategic growth opportunities.  

In order to hook the interest of this next-gen digital worker, every insurance company will need the following five lures:

  1. Culture of Innovation
  2. Technology Savvy
  3. Personal Growth Opportunities
  4. Social Responsibility
  5. Flexible Workplace

Based on a survey conducted and published by Applied Systems in collaboration with InVEST, Gen Z places a high value on technology and innovation with 48% saying it’s very important and 45% somewhat important for Gen Z to work for a company that is innovative.

Organizations that are trawling for fresh talent need to be progressive in terms of opportunities they offer employees, their social responsibility, and the work environment including the computer applications and systems that employees use regularly. According to Accenture Consulting, 68% of insurance employees expect intelligent technologies to create opportunities for their work.

Not only can AI help insurance companies automate and standardize underwriting processes such as Policy Checking and Submission Triage, but it can be the shiny lure to attract and catch fresh talent.

Browse different topics

Recent Posts