If you examine any business sector, the current battle for talent is fierce. Numerous factors are combining to make both recruitment and retention complex and challenging – starting with employee turnover. According to McKinsey & Company, 40 percent of the global workforce is looking to leave their current job in the next three to six months.
The McKinsey article said the pandemic has caused employees to reevaluate everything from employment to overall life direction. It outlined three emerging employee trends: “reshuffling” to jobs in different industries, “reinventing” by setting up their own business or taking on a temporary or part-time role, or “reassessing” and leaving the job market altogether.
The finance and insurance sectors have experienced more “reshuffling” and “reassessing” than most others. Of those finance and insurance employees who left their jobs between 2020 and 2022, worryingly, 65 percent did not return to the industry or left the market, and 35 percent got another new job in their current industry.
An exodus from the sector is incongruous with growth-minded insurers. The insurance industry is experiencing an unprecedented wave of digital disruption and innovation – needing to move ever faster. Natural, man-made, and emerging risks are becoming more complex, together with new demands from a broadening range of regulators and stakeholders, making the need to retain and attract talent a vital requirement.
But in the U.S. alone, nearly 400,000 employees are expected to retire from the insurance industry workforce within the next few years, according to the U.S. Bureau of Labor Statistics.
If you think about the business you work in, have some key employees left? Great colleagues, that were the backbone of your operation? Is this putting pressure on other employees, who then in turn might consider leaving? How can you even backfill with a labor market so tight?
The usual levers of good compensation and a strong brand might not be enough. Recruiting is taking longer, and your HR team must work harder to bring in new talent. But you need to ensure business as usual, and to do this requires new approaches.
Address Talent Pressures with Smart Resourcing
A recent survey from Deloitte of 424 senior insurance executives from North America, Europe, and Asia-Pacific countries stated that attracting the right talent may be the biggest challenge that insurers currently face. At least a third of respondents are looking to increase head count.
But to grow, the report recommends that the industry needs to go beyond the boundaries of geography and professional background to tap into a wider talent pool. Businesses should also consider supplementing full-time roles with part-time, transitional, and contract workers to access talent with specialized expertise and experience.
As one of the largest providers of catastrophe modeling services, working with over 100 clients globally, RMS® Analytical Services sees these talent pressures and wants to help address them.
The cyclical nature of the insurance business – with defined renewal periods together with regulatory, ratings agency, and financial reporting deadlines – requires a huge amount of resources focused on specific times. Throw in the urgency around a cat event or the need to get a grip on losses, and resources are stretched too thin, with new business and innovation activity put on the back burner.
Risk management, analytics, catastrophe modeling, and regulatory reporting are all specialist areas, so in terms of attracting talent, you will be up against other insurers – or you’ll have to train employees, which can take valuable time.
RMS Analytical Services is a team of over 350 analysts delivering talent directly to clients with our secondment scheme.
Our highly trained and skilled analysts can hit the ground running from day one, working for anyone from a Lloyd’s syndicate to a major reinsurer. More than just a contractor, when seconded as part of RMS Analytical Services, our analysts also have access to all the infrastructure, model IP, and services you need.
Feel Confident with Total Flexibility
Our work with leading insurers and reinsurers has led to two observations. First is that many have a core staff for the modeling function but recognize the peaks and troughs of workloads.
They increasingly use our services either directly or by exclusively seconding RMS analysts to work on-site or remotely alongside their team. This gives clients total flexibility to increase or decrease capacity, knowing that our analysts are ready to help – especially at peak renewal times.
Second, by using our seconded analysts, clients have access to the latest RMS modeling IP and the cloud-based RMS Intelligent Risk Platform™ to help with the acceleration of adopting new technology, further enhancing internal skill sets.
Taking on a skilled, flexible resource from RMS Analytical Services allows clients to retain their valued staff to focus on high-impact business projects instead of having to divert attention to accommodate renewals.
With the talent crunch set to continue, and with key employees leaving for new roles outside of the insurance sector, it’s never been more important to have secure resources to keep the wheels turning – ensuring your valued employees can pursue more enriching activities that drive toward your business’s overall goals.
Contact us to explore RMS Analytical Services secondment options.