Research: State of the Young Insurer Nation Part 1: Joining the industry

- By Michèle Bacchus
- 08 Apr 2016
- Indicative reading time: 9 minutes

For Post’s first research project of 2016, Michèle Bacchus asks more than 50 young insurer employees why they joined the sector, where they think the industry is heading and whether they want to be a part of its future.

Career development prospects and general working atmosphere were the two major pulling factors when it came to choosing jobs, and for some a company’s name was an added attraction. “When I moved to my current employer it was a combination of reputation, management which was excellent, growth opportunities and area of interest,” said one respondent. In two cases pay package was the determining factor in choosing a job, suggesting the insurance sector’s reluctance to reward top young talent might be hindering efforts to attract the best who will naturally demand a higher starting salary.

Once past the gates of the insurance world, things weren’t so great, however, with over one-fifth doubting their decision. “It is quite a traditional industry with traditional mindsets,” bemoaned one respondent, who added: “There is not a hugely innovative culture and it is very reserved and sometimes restricting.”

Slow career progression, lower pay than the other sectors and an aversion to change were also cited as concerns. “Comments about the industry being ‘old school’ were founded,” said one young insurer, “and the activities were vastly more basic than what was being done in banking”. Another concurred: “Insurance seemed quite ‘backwards’ in terms of IT, processes and was a bit of a shock!”

Three people were actually discouraged from joining insurance. “I was told with a legal degree I should look at the law or elsewhere due to the perceptions of the insurance industry,” said one, while another was told: “Insurance was too old school and wouldn’t interest me enough.” young-insurer-entering-the-market (Click for a larger version)