How AI can help build the insurance workforce of the future

The insurance sector in the UK is undergoing a significant transformation, driven by technological advancement, customer expectations, market conditions and workforce demographic changes. 

This transformation, amplified by current UK labour market challenges, is creating a new workplace dynamic: where strategic workforce management, talent attraction and development and wellbeing in the workplace will become either a key source of risk or a competitive advantage for employers.

Focusing on strategic workforce planning and providing targeted upskilling and re-skilling opportunities becomes critical for employers to proactively manage workforce change within their organisations, avoid skill gaps and maintain employability of the workforce.

Amanda Vaughan, Axa UK & Ireland

As the adoption of artificial intelligence and automation accelerates across the industry, we’re seeing a shift from experimenting with use-cases to scaling adoption in core business operations such as underwriting, claims and customer service. 

This process is driving change in the workplace and creating demand for new capabilities from our workforce (AI/data specialists, digital risk analysts), while traditional roles such as claims processing are being automated or redefined. 

Focusing on strategic workforce planning and providing targeted upskilling and re-skilling opportunities becomes critical for employers to proactively manage workforce change within their organisations, avoid skill gaps and maintain employability of the workforce.

At Axa, as we deploy AI at scale, we are engaging in comprehensive strategic workforce planning. 

This involves analysing and forecasting the future supply and demand for skills and ensuring that our colleagues are equipped with the right capabilities to meet the evolving needs of our business. 

To support this, we are offering targeted upskilling opportunities through our Data & AI, Underwriting and Claims & Pricing Academies.

The industry as a whole is also facing a potential talent gap for several reasons, the single biggest factor being the ageing workforce. 

According to consulting adviser RSMUK, more than a quarter of those working in insurance in the UK are over 50. 

With a significant number of insurance professionals planning to retire in the next decade, the industry is likely to face skills shortages in areas such as underwriting, claims leadership, broking, actuarial and technical risk roles. 

This challenge is compounded by a limited graduate and early-career pipeline, along with the industry’s lack of attractiveness to these cohorts. 

Creating and promoting a strong culture and benefits offering which includes access to apprenticeships, internships, and mentoring programmes will attract new talent and drive knowledge sharing across generations. 

With more than 200 apprenticeships underway at Axa, we are seeing strong engagement from our early-careers talent in underwriting. 

This programme is helping us build a robust pipeline of skilled professionals to meet our future needs.

Sense of belonging

Equally important is our focus on wellbeing, flexibility and inclusivity. A supportive, inclusive workplace fosters engagement and a sense of belonging, which is essential for attracting and retaining diverse talent. 

We recognise that a healthy, balanced workforce is more productive and innovative, especially in times of change.

Maintaining high-performance in difficult market conditions remains a significant challenge for employers. 

Additionally, fostering employee engagement while driving transformation and workforce changes adds to the complexity of managing the business effectively. 

While there is no silver bullet, we know that providing a healthy workplace that focuses on wellbeing (physical, mental and financial) and inclusion will both support our people through the change and lead to stronger productivity.

Looking ahead, I’m optimistic. We’ve made great progress in creating an innovative, inclusive, and resilient workplace, but there’s still work to do to attract and inspire the next generation. 

It’s time for the insurance industry to shake off its fusty image and demonstrate the diversity of careers on offer in a cutting-edge sector that has the potential to positively impact everyone’s lives.