Tackling the insurance skills shortage by attracting and retaining staff

The insurance industry in Australia is facing a workforce shortage that has the potential to seriously disrupt the industry. However, the key to overcoming this challenge could lie in attracting and retaining top performers.

The growing talent shortage in the insurance industry

In 2024, the Insurance Council of Australia (ICA) revealed that the insurance industry is facing a critical shortage of workers. Factors contributing to the shortage include:

An aging workforce: Almost 30% of the workforce is expected to reach retirement age in the next five years. Only 17.9% of insurance workers are aged 34 or under.
A significant skills shortage: Many businesses in Australia are facing a skills shortage, including the insurance industry – particularly when it comes to liability claims consultants, workers’ compensation specialists and underwriters.
The impacts of climate change: The increasing frequency of extreme weather events will further exacerbate the skills shortage.

Impact on insurance brokers

The talent shortage in the insurance industry could have serious impacts for brokers and broking firms, which could affect operations and long-term growth potential. Some of the ways the talent shortage could impact brokers include:

Service disruptions: With fewer skilled professionals available, broking firms may struggle to meet client needs. This could potentially lead to delays in policy issuance, claims processing and general customer support.
Employee burnout: With fewer staff to fill the gaps, existing staff may suffer from burnout from trying to take on a greater workload to make up the gap.
Stalled growth: With less people to do the work, there will be less opportunities for brokers to cultivate new, solid client relationships or explore possible new sectors for expansion.

Strategies for attracting and retaining top talent

Part of the key to facing the challenges of the skills shortage head on lies in being able to attract new workers to the industry and retaining existing talent.

Adriana Rey has been with BizCover for Brokers since 2021. In her time here, she has become the go-to communications and marketing expert within the BizCover for Brokers team. In 2024, she was presented with the prestigious Insurance Business Rising Star award, an industry award recognising exceptional young talent.

To find out just what can help to attract and retain young professionals in the insurance industry, we spoke to Adriana about her recent win, why she first decided to join the BizCover for Brokers team, and why she has chosen to stay on with the company for the last few years.

Building a strong workplace culture

The average worker will spend roughly 90,000 hours of their life at work. That’s approximately one-third of a lifetime. When you consider this, a positive and supportive work culture becomes not just a ‘nice to have’ but a necessity.

“I first applied for the role at BizCover for Brokers because a friend of mine recommended them,” says Adriana. “He emphasised how supportive and engaging the environment was. His enthusiasm and insight gave me confidence that this was a place where I could thrive both professionally and personally.”

Research has also shown that a positive work environment can have profound impacts for staff members, helping to boost engagement and, therefore, productivity and loyalty.

Developing your existing talent

Identifying rising stars within your business and nurturing their professional growth is key for long-term success. High-performing employees often thrive when given opportunities to expand their skillset and learn new things.

“While there’s always room for more structured skill development, I’ve learned so much on the job,” says Adriana. “The dynamic nature of the role means I’m constantly growing and adapting, which has allowed me to develop new skills organically. I appreciate how every challenge presents an opportunity to learn.”

Providing flexibility

A recent review by Randstand found that employees value a healthy work-life balance more than salary. With this in mind, providing a flexible work environment for employees can evidently go a long way to retaining and attracting staff. Furthermore, establishing a positive work-life balance has recently been put into law in Australia with the Right to Disconnect. This is a clear sign of the importance of establishing a work-life balance for employees.

Adriana agrees, saying that one of the reasons she has decided to remain with BizCover for Brokers for so many years is partly because of “the flexibility to balance work and life.”

A healthy work-life balance has a range of benefits for both employees and employers. When employees feel they have a healthy balance, they are less likely to suffer from burnout and work-related stress, which can help to increase engagement and productivity. In turn, this contributes to a positive and supportive work culture that can help to attract and retain staff.

Encouraging diversity

Diversity, equity and inclusion (DEI) is incredibly important for any business. Over the years, countless studies and surveys have shown that DEI leads to a more creative, innovative and productive business. If employers don’t expand their hiring search to include more diverse groups of people, then they are potentially missing out on skilled, talented professionals who can bring a whole new perspective to the business.

The ICA states in their report that “Our vision is for the Australian insurance industry to be the employer of choice for DEI, and one of the most diverse, equitable and inclusive industries in Australia by 2030.” They believe that by prioritising DEI, the insurance industry as a whole can become stronger and more resilient, which will ultimately help to combat the looming skills shortage.

“To me, DEI is very important,” says Adriana. “For one, the insurance customer base is extremely diverse. Which means that the insurance industry should be aiming to reflect this diversity so that we can better service our customers.” She continues, “I also think DEI is important for any business, simply because it encourages different ways of thinking and can help to build an overall better workplace environment.”

Supporting the insurance industry into the future

There’s no doubt that the insurance industry is at a pivotal moment. While the challenge of workforce shortages remains, it’s important for businesses to not only be able to attract the best staff but retain the top performers they already have.

Whether you’re an independent insurance broker or own your own business and manage a team of staff, BizCover for Brokers can help to streamline the end-to-end process for you when servicing SME customers. BizCover for Brokers is a full lifecycle platform for business insurance that streamlines the end-to-end process when servicing their SME clients. Created by brokers for brokers, the platform empowers brokers by increasing efficiency. Visit BizCover for Brokers today to learn more.

BizCover for Brokers acts as agent of the insurer and not as the agent of you or your client. Any advice provided is general advice only and does not take into account the personal objectives, financial situation or needs of you or your client. Always read the Product Disclosure Statement or Policy Wording (available on our website).